A reasonable compensation scheme is essential for the frequency modulation ancillary service markets. To optimize the allocation of the frequency modulation resources

the compensation mechanism based on frequency modulation performance is introduced into frequency modulation ancillary service markets in the United States. The latest frequency modulation compensation mechanisms in Pennsylvania-New Jersey-Maryland

California

New York

New England and Midwest of the United States are analyzed and compared

including settlements and calculating methods of mileage and accuracy. Finally

according to the reform in the electric power system in China

the corresponding policy suggestions for developing frequency modulation ancillary service markets and frequency modulation compensation mechanisms are proposed.