Wholesale Market Participation of DERAs: DSO-DERA-ISO Coordination

Cong Chen, Subhonmesh Bose, Timothy D. Mount, Lang Tong

Research output: Contribution to journalArticlepeer-review

Abstract

Distributed energy resource aggregators (DERAs) must share the distribution network together with the distribution utility in order to participate in the wholesale electricity markets that are operated by independent system operators (ISOs). We propose a forward auction that a distribution system operator (DSO) can utilize to allocate distribution network access limits to DERAs. As long as the DERAs operate within their acquired limits, these limits define operating envelopes that guarantee distribution network security, thus defining a mechanism that requires no real-time intervention from the DSOs for DERAs to participate in the wholesale markets. Our auctions take the form of robust and risk-sensitive markets with bids/offers from DERAs and utility's operational costs. Properties of the proposed auction, e.g., resulting surpluses of DSO and the DERAs, and the auction prices, along with empirical performance studies, are presented.

Original languageEnglish (US)
Pages (from-to)6605-6614
Number of pages10
JournalIEEE Transactions on Power Systems
Volume39
Issue number5
DOIs
StatePublished - 2024

Keywords

  • behind-the-meter distributed generation
  • Biological system modeling
  • DERA and DER aggregation
  • Distribution networks
  • ISO
  • Mathematical models
  • network access allocation mechanism
  • Real-time systems
  • Resource management
  • Stochastic processes

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

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