Toward technically feasible and economically efficient integration of distributed energy resources
September 24, 2019
This paper formulates the efficient and feasible participation of distributed energy resources (DERs) in complex electricity services as a centralized nonlinear optimization problem first. This problem is then re-stated using the novel energy/power transformed state space. It is shown that the DER dynamics in closed-loop can be made linear in this new state space. The decision making by the DERs then becomes a distributed model predictive control problem and it forms the basis for deriving physically implementable convex market bids. A multi-layered interactive optimization for clearing the distributed bids by higher layer decision makers, such as market aggregators, is posed and shown to lead to near-optimal system-level performance at the slower market clearing rates. A proof-of-concept example is illustrated involving close to one hundred heterogeneous controllable DERs with real consumption data of a distribution feeder in Texas, contributing to automatic generation control (AGC).