A Comprehensive Framework for Distributed Energy Resource Aggregators

Abstract

An operational framework is proposed for managing aggregated distributed energy resources (DERs). Currently, aggregators partake in the energy market with minimal coordination or exchange of information with the concerned parties. In particular, demand response (DR) has yet to offer its potential value to the grid. It continues to be utilized as a bulk service for peak-shaving, served with little regard or accountability of the additional effects it brings. This has led to numerous issues surrounding DR events, mainly concerning the distribution system. In both practice and literature, there lacks a structured method for aggregators to operate optimally while addressing the issues observed. Most of the research found in literature pertains to a singular problem, for example, aggregating electric vehicles (EV), optimal bidding strategies, optimal scheduling, and congestion management using DR. The integration of these large concepts is not found in literature but is important in understanding the practical effects additional technical and financial constraints have on finding a practical, close-to-optimal solution. The framework proposed is comprehensive, containing all the components believed to be necessary for an aggregator to operate with respect to the distribution constraints. It is also conceptual and meant to emphasize the benefits the individual components and the complete framework offer.