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This paper discusses the imbalance netting process (INP) between control areas (CAs) that was developed due to the high costs of balancing energy. The main objective of INP is to net the demand for balancing energy between the participating CAs with opposite signs of interchange power variation. However, INP incorporates a frequency term; hence, it affects the frequency response of participating CAs inherently, which is not discussed in the literature. Therefore, the impacts of INP on the frequency quality and provision of load-frequency control (LFC) are shown thoroughly with dynamic simulations of a three-CA testing systems, in addition to an eigenvalue analysis of a two CA system. It is shown clearly herein that INP changes the eigenvalues of the system matrix, which results in decreased damping of the entire power system. Furthermore, the simulation results confirmed that INP reduces balancing energy, releases regulating reserve and reduces the unintended exchange of energy; thus, LFC performance indicators were improved. However, the impact of INP on frequency quality is not so explicit, since cases exist of frequency quality improvement and deterioration.

This paper presents the Cross-Border activation of the Regulating Reserve (CBRR) between participating Control Areas (CAs), which is being developed to reduce the costs of balancing energy. The main objective of the CBRR is to activate the regulating reserve in participating CAs, to release the regulating reserve and to reduce the balancing energy as part of the safe operation of the power system. However, the classic CBRR includes a frequency term and, therefore, inherently affects the frequency response of the participating CAs, which is not discussed in the literature. In this paper, the impact of the classic CBRR on frequency quality and the provision of Load-Frequency Control (LFC) is thoroughly evaluated with dynamic simulations of a three-CA test system and an eigenvalue analysis of a two-CA system. It is clearly demonstrated that the classic CBRR reduces the damping of the entire power system. Therefore, a modified implementation of the classic CBRR is presented, and a modified CBRR is proposed, which has no impact on the system's eigendynamics. Furthermore, the results of the dynamic simulations confirm that the frequency quality can be improved by the classic CBRR, although there are also cases where it can deteriorate. However, the modified CBRR improves the frequency quality in all cases. The modified CBRR also improves the indicators for the provision of LFC compared to the classic CBRR. Moreover, the modified CBRR reduces the unintended exchange of energy and the demand power, thus increasing the financial effects of the CBRR's activation. INDEX TERMS Balancing energy, Cross-Border activation, eigenvalue analysis, Load-Frequency Control, regulating reserve. NOMENCLATURE N Number of participating CAs. ACE i , ACE i , ACE * i

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