Probabilistic Prequalification Scheme of a Distribution System Operator for Supporting Market Participation of Multiple Distributed Energy Resource Aggregators

This paper addresses the need for distribution system operators to effectively manage uncertainties related to distributed energy resources. We propose a probabilistic approach using Polynomial Chaos Expansion, allowing the operator to balance economic efficiency with system reliability by setting a pre-determined acceptable violation probability. This approach provides efficient computation and high accuracy in the representation of uncertainties. Moreover, we introduce a framework for integrating the capability of distributed energy resources aggregators to manage uncertainties through the uncertainty band commodity. This allows these aggregators to bid for both energy and a specified uncertainty range, thereby contributing to their active role in the management of system uncertainties. Our methodology fairly distributes responsibility for constraint violations among various stakeholders by employing two allocation strategies: one based on Shapley Value and another based on sensitivity factors. The proposed system significantly improves the overall decision-making process by considering both economic and reliability factors within the prequalification process of distribution system operator.