In the ongoing trend of restructuring the electricity market worldwide, ancillary services are introduced for operating entities to realize the market function and maintain system security. As generation has been unbundled from the vertically integrated structure, the generation companies (GENCOs) willing to join the power market would be interested in how the direct service between suppliers and customers be effectively realized at lower operating costs, while maintaining the operating service at the satisfactory level. This paper presents a method to estimate specific customer's power deficiency that is used for GENCOs to provide the bilateral ancillary service. Results showing the proposed method in the simulated condition were performing as desired. An adaptive frequency bias setting is utilized to develop a bias logic based gain-scheduling controller. Simulation results showed that the proposed controller is feasible for GENCOs to enhance bilateral regulation performance.
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