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During the transition towards a low carbon energy system, and as a result of the increasing penetration of renewable energy generation, ancillary services play an important role in ensuring the security and economics of power system operation. An integrated energy service provider (IESP), with the energy coupling and storage devices inside, can flexibly participate in electric energy markets and ancillary service markets. In this paper, a mixed-integer optimization problem is formulated to determine the optimal operating strategy for the IESP with ancillary service provision. First, the mathematical model of a regional integrated energy system (RIES) is established, including energy coupling devices and energy storage devices. Then, an optimization model for the IESP operation is formulated with the objective of maximizing daily operation profit, and the corresponding optimal capacity of ancillary service provision from the IESP is attained. Finally, case studies of an RIES are carried out to demonstrate the feasibility and effectiveness of the proposed method, and the impacts of the IESP with ancillary service provision on operational characteristics and economic benefits are analyzed.

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