MANAGEMENT OF DISTRIBUTED ENERGY RESOURCES TO SUPPORT BALANCING OPERATIONS OF POWER SUPPLY-DEMAND IN POWER GRIDS

Abstract

This paper presents a theoretical approach that calculates parameters for managing distributed energy resources (DERs), considering the balancing operation of power supply and demand in electric power grids. In the proposal, first, the power trade between retail power suppliers, including functions of electric aggregators, and consumers is formulated as a problem of social welfare maximization. As the consumers cooperated with the retail power suppliers’ requests, the consumers’ economic surplus obtained in return for power consumption changes. Based on this characteristic, the authors then define economic incentives that reward the consumers’ cooperation. With the proposal, in theory, the consumers can be more satisfied even though their power consumption is controlled by the retail power suppliers. The validity of the proposal is verified through numerical simulations and discussions on their results.