Frequency regulation is essential for the stability of a power grid with high load fluctuation\nand integration of new energies. Constrained by the large ramping, a generator alone is not capable\nof conducting load frequency controls effectively and economically. In this paper, an energy storage\nsystem (ESS) is introduced to coordinate with generators in automatic generation control (AGC),\nwhere ESS and the generator respectively deal with high-frequency load fluctuation and low-portion.\nWe develop a system configuration framework for such a hybrid system, including the operation\nstrategy and capacity optimization. Due to the complexity of the hybrid system, the operation process\nis captured by a simulation model which considers practical constraints as well as remaining energy\nmanagement of ESS. Taking advantage of the gradient-based approximation algorithm, we are then\nable to optimize the capacity of a hybrid system. According to the numerical experiments with real\nhistorical AGC data, the hybrid system is shown to perform well in cost reduction and to achieve the\nregulation tasks.
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