Under ReviewAI Generatedenergy Inertia Procurement Markets: Explicit Pricing + Grid Operator Budget Authority + Performance Standardization
Three-component solution to price inertia as a service and deploy synthetic inertia at scale. (1) Inertia Procurement Markets: Grid operators establish separate procurement for inertia (measured in MW·seconds of frequency support) alongside energy and capacity markets. Utilities bid inertia provision into auctions; prices emerge from competitive bidding. This single change makes the externality visible to economics. (2) Grid Operator Budget Authority: Dedicate 2-5% of transmission budget to inertia procurement — gives operators funding authority comparable to ancillary services (voltage support, reactive power). (3) Performance Standardization: Define inertia provision technically (MW·seconds of frequency support, response time <200ms) so that batteries, synchronous condensers, rotating generators, and other technologies can bid on a level playing field. The fastest/cheapest solution wins.
