In this deliverable from the SeCoHeat project, profits that can be made with 1 MWh of electricity production capacity on existing ancillary service markets are evaluated in 2020 and 2021. Profits are evaluated for four different marginal production costs corresponding to the following fuels for a CHP power plant: waste (assumed fuel price: 0 kr/MWh), recycled wood (10 kr/MWh), wood chips (20 kr/MWh) and wood pellets (30 kr/MWh). The results show that except for wood chips and wood pellets in 2020, the most profitable ancillary service markets are FFR (fast-frequency response) and aFRR down (automatic frequency restoration reserves for down-regulation). The reasons are that (1) producers don’t have to withhold capacity from the day-ahead market when their participate in these two markets and (2) producers get compensated for the capacity reserved for the ancillary service markets. For wood chips, the FFR market was the most profitable in 2020, followed by the mFRR down market (manual frequency restoration reserves for down-regulation). The reason for the mFRR down market to be more profitable than the aFRR down market for this fuel is that the profits from mFRR down depend on the avoided fuel costs, which are higher for wood chips than for waste and recycled wood. In 2021, all prices started increasing significantly, which decreased the relative profitability of the mFRR down compared to other markets. For wood pellets, the mFRR down market was also the second most profitable market in 2020, for the same reasons. The most profitable one in 2020 was the mFRR up market (manual frequency restoration reserves for up-regulation). The reason is that the higher fuel price of these two fuels entails low participation in the day-ahead market. Therefore, withholding capacity from the day-ahead market to be able to participate on the mFRR up market brings additional profits. In 2021, however, day-ahead prices started increasing significantly (a trend that continued into 2022) and the mFRR up market became the least profitable market for these two fuels. The profit evaluation performed in this deliverable is purely economic. It does not include the sector coupling to the heat sector (which entails limitation of the available electricity production capacity but also a possibility to store heat if storage is available) nor does it include other technical limitations such as ramp rates. These aspects will be considered in follow-up work in this project. This report has been compiled within the scope of the project SeCoHeat - Sector coupling of district heating with the electricity system: profitability and operation. The project is financed by the Research and Development Foundation of Göteborg Energi.