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SCUC-DER Integration Report: Integrating Distributed Energy Resources (DER) Using Advanced Unit Commitment Models and DER Aggregation Methodologies

Distributed energy resources (DERs) are continuing to grow due to regulatory, policy, and market shifts, and it needs to be ensured that small DERs are given a level playing field with traditional resources. Legacy market processes such as unit-commitment problems were designed for a power grid consisting largely of centralized power plants. In contrast, DERs consist of many small devices with distinct operating characteristics that may or may not be connected at the transmission interconnection points, limiting their visibility to the independent system operators (ISOs) who operate wholesale electricity markets. This report details the development and initial results from a simulation platform that integrates state-of-the-art security-constrained unit commitment software, detailed feeder models, and a DER aggregator model to quantify potential DER integration issues. Quantitative results to date illustrate potential infeasible scheduling solutions from SCUC when the DERA includes aggregations of energy-limited energy storage resources. Likewise, if aggregations are not penalized for dispatch deviations, they may have incentives to deviate from the SCUC-determined resource schedules. Assumptions about the amount of aggregated demand response resources (DRRs) and the ability of DERAs to follow profit incentives have an important impact – DRRs have significant flexibility and can typically feasibly meet their SCUC schedule, but on the other hand, their profit incentives can cause unscheduled increases in load before and after DRR dispatch. Computation time results on the SCUC solver and simulation platform only show a modest increase in SCUC solution time as the number of DERAs is increased, but results to date only reflect the RTS-GMLC test system; results may show more significant solver slowdown in larger transmission systems. The largest contribution to simulation time is attributed to the DERA offer generation method, which is suggested for future improvements.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Impact analysis of DERs on bulk power system stability through the parameterization of aggregated DER_a model for real feeders

With an ever increasing percentage of distributed energy resources (DERs) connected behind the meter in the distribution system, it is becoming increasingly important to equip transmission planners with the visibility of DER dynamic performance in distribution system. Not having visibility of the disconnection of DERs with the occurrence of transmission events, could result in an erroneous view of the stability of bulk power system. Here, in this paper, a parameterized aggregated model (DER_a) serves as a representation of the distribution-level dynamics of real residential feeders, which is used for analysis of bulk power system stability. The parameters are obtained by executing dynamic Monte Carlo simulations. Faults are then induced at the substation level causing the DERs to trip which subsequently enables the parameterization of the low and high voltage breakpoints (v l0 , v l1 , v h0 , and v h1 ) of the DER_a model’s partial voltage trip block. These parameters are then utilized to study the effectiveness of the DER_a model to represent the behavior of the aggregated DERs’ response and their impact on the bulk power system. The case study shows the ability of the positive-sequence DER_a model to provide an accurate estimation of DERs that are susceptible to trip due to 3-$\phi$ and 1-$\phi$ faults of transmission.

14 SOLAR ENERGY↗

Integration of Microgrids, DER Aggregators, and DERMS with ADMS

Distributed energy resource (DER) management and control is disjointed, siloed, and at times conflicting. Behind-the-meter (BTM) assets can provide significant flexibility but are poorly integrated with the grid. Centralized control methods alone are not scalable. The objective is to develop and demonstrate an architecture that: provides reliable, resilient, and secure grid services; enables scalable, near-real-time management of utility- and small-scale DERs; supports transactive control, aggregation, and direct control of DERs; and incorporates existing utility management systems.

ADMS↗

Model Formulations: Integrating Distributed Energy Resources (DER) using Advanced Unit Commitment Models and DER Aggregation Methodologies

A distribution energy resource aggregator (DERA) constitutes a group of distribution energy resources with small generation capacities which meet the threshold to participate in the electricity wholesale market. This document provides the proposed DERA model formulation that will be implemented in the SCUC simulation’s architecture for the SCUC-DER project. Different economical assessment methodologies have been developed to incorporated bids for individual distributed resources, which include solar cost dispatch and cost model, BESS opportunity cost offer algorithm, and price sensitive demand response model. Detailed methods are proposed to aggregate individual cost offers to a DERA cost curve to bid in SCUC market while three methods are proposed to simulate DER actual dispatch. Based on the DERA models in this document, the SCUC-DER project will be able to assess the impacts of DERA on the distribution system’s operation and reliability.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Aggregated DER_A Model Parameterization via Online Moving Horizon Estimation

Here, this paper introduces a methodology for parameterizing the DER_A model using a novel smooth mathematical representation, simplifying the process and preserving accuracy in modeling inverter-based generator (IBG). The methodology employs an online parameterization process that can operate in real-time. The model parameterization process is structured into five sequential steps, each targeting a specific aspect of the DER_A model through moving horizon estimation. This approach adapts to systems with varying voltage and frequency support requirements by selectively applying each step. Simulation results on systems with both known and unknown parameters validate the methodology’s effectiveness. The online moving horizon estimation technique accurately captures the dynamics of the overall system and ensures that the parameterized DER_A model closely mirrors the real system’s voltage, current, and power dynamics. The findings highlight the potential of this methodology to substantially improve and simplify the dynamic modeling of power systems, paving the way for more reliable and robust IBG and grid integration.

42 ENGINEERING↗

Are better combinations of DERs more profitable?: Combinatorial optimization for aggregation of DERs in wholesale electricity markets

Recently, regulatory changes in various countries have enabled the participation of small-scale distributed energy resources (DERs) aggregated in virtual power plants (VPPs) in wholesale electricity markets. The inherent uncertainty and variability of resources comprising VPPs can lead to imbalances between forecasted and metered outputs, potentially resulting in the deficient settlement of generation under imbalance settlement rules. To address this challenge, it is essential to manage variability in the planning phase and uncertainty in the operation phase. Most current research focuses on managing forecasting errors in the operational phase, with insufficient attention given to the planning phase. Here, to bridge this gap, this paper proposes an optimal combination strategy for DERs to maximize the market participation revenue of VPPs by proactively managing variability in the planning phase. To estimate the expected revenue, we conducted analyses for homogeneous and heterogeneous DERs using Monte Carlo simulations and genetic algorithms. Remarkably, the proposed method demonstrated approximately 8 % higher revenue compared to the neighboring group case when considering diversity in DER set configuration with equal proportions of photovoltaics and wind.

24 POWER TRANSMISSION AND DISTRIBUTION↗

What Role Do Aggregators Play in Power System Security and Resilience?

Barriers to the participation of distributed energy resources (DERs) in wholesale electricity markets have limited the use of DERs for power system security and resilience. In September 2020, the Federal Energy Regulatory Commission (FERC) approved an order to reduce these barriers. FERC Order No. 2222 enables the participation of DER aggregators in wholesale electricity markets. DERs include renewable generation and technologies that support the integration of renewable generation by increasing grid flexibility and resilience. Requiring wholesale energy markets to allow DER aggregator participation provides a path for DERs to become competitive in these markets. As the contribution from aggregated DERs continues to increase, the aggregator's role in supporting grid security and resilience will become more critical. This paper reviews work that demonstrates how DER aggregators can provide resilience support through technical capabilities, operational strategies, and secure communication architectures. Socioeconomic influences and impacts of aggregators, including implications for social resilience, are presented. In surveying the current state-of-the-art across different but interconnected topics, we illustrate how aggregators can be power system participants that enhance grid security. There is no one-size-fits-all approach to enhancing resilience in a power grid that includes a growing cohort of DER aggregators, but there are many options for aggregators to contribute to a more resilient and secure power grid.

aggregator↗

What Role Do Aggregators Play in Power System Security and Resilience? Preprint

Barriers to the participation of distributed energy resources (DERs) in wholesale electricity markets have limited the use of DERs for power system security and resilience. In September 2020, the Federal Energy Regulatory Commission (FERC) approved an order to reduce these barriers. FERC Order No. 2222 enables the participation of DER aggregators in wholesale electricity markets. DERs include renewable generation and technologies that support the integration of renewable generation by increasing grid flexibility and resilience. Requiring wholesale energy markets to allow DER aggregator participation provides a path for DERs to become competitive in these markets. As the contribution from aggregated DERs continues to increase, the aggregator's role in supporting grid security and resilience will become more critical. This paper reviews work that demonstrates how DER aggregators can provide resilience support through technical capabilities, operational strategies, and secure communication architectures. Socioeconomic influences and impacts of aggregators, including implications for social resilience, are presented. There is no one-size-fits-all approach to enhancing resilience in a power grid that includes a growing cohort of DER aggregators, but there are many options for aggregators to contribute to a more resilient and secure power grid.

aggregator↗

FERC Order No. 2222 and Considerations for Distributed Wind

The Federal Energy Regulatory Commission (FERC) issued Order No. 2222 in October 2020. The rule directs Regional Transmission Organizations and Independent System Operators (ISOs) to amend their tariffs and participation models to accommodate heterogeneous distributed energy resource (DER) aggregations in the wholesale energy markets that they operate, including capacity, energy, and ancillary service markets. The Commission issued the rule to better capture the benefits provided by DERs deployed in the United States, whose use has been expanding rapidly. The Commission defines DERs as “any resource located on the distribution system, any subsystem thereof or behind a customer meter,” including but not limited to “electric storage resources, distributed generation, demand response, energy efficiency, thermal storage, and electric vehicles and their supply equipment.” The rule aims to increase DER participation in wholesale markets by allowing the creation of DER aggregations, in which multiple DERs that are too small to meet minimum capacity requirements for wholesale markets individually would be able to participate in markets as a single unit. As of June 20, 2023, all ISOs have filed initial compliance plans and a number have begun implementation. Compliance dates range from 2024 to 2029, with Midcontinent ISO having the latest date of compliance proposed for 2029. Southwest Power Pool still has an outstanding date, having no final order yet from FERC, but a target date of the third quarter of calendar year 2025. The rule, which is technology agnostic and requires ISOs to create participation plans that accommodate different DERs, provides an opportunity for distributed wind market expansion. In addition, distributed wind can bring benefits to heterogenous DER aggregations. These benefits include resource diversity (i.e., a complementary generation profile to other types of distributed generation), its small footprint and ability to be co-located with load, and its potential to provide frequency response, voltage support, and black start services, among other ancillary services. This report provides a status update on FERC Order No. 2222, the current state of ISO compliance, and information relevant to the distributed wind industry as DER aggregators and other stakeholders expand their participation to wholesale energy markets.

17 WIND ENERGY↗

Distributed Wind and Impacts of FERC Order No. 2222 Implementation

In September of 2020, FERC issued Order No. 2222, directing ISOs to adjust their long-standing tariffs and participation models to enable the operation of distributed energy resource (DER) aggregators in wholesale energy markets. The rule sought to bring wholesale markets under its jurisdiction up to speed with existing expansion of DERs across the United States and to capture the potential benefits that these technologies can provide. This report describes the implementation of FERC Order No. 2222 and the compliance plans that have been submitted so far, attempt to understand the potential impact the rule may have on distributed wind, and provide opportunities for future work to analyze and encourage deployment under these policy conditions. There is an information gap for the type of market interactions distributed wind may have or how it could be best deployed in DER aggregations under future market conditions. There is significant potential for profitable deployment of distributed wind in states that are served by ISOs and covered under Order No. 2222. Distributed wind and other DERs provide local energy that does not need to travel those distances and avoids the losses typically associated with long-distance energy transmission. Deployment of distributed wind can benefit communities that exist away from large load centers by providing local, clean, and affordable energy. Aggregating DERs that include distributed wind could provide these benefits across multiple far-ranging communities if they have access to participate in wholesale markets. A new baseline valuation of distributed wind in areas covered by Order No. 2222 is required to accurately gauge where it is profitable and how it can compete or complement existing or future DER deployment, including as part of an aggregate.

17 WIND ENERGY↗

Consensus-Based Approach for Active Power Control and Reserve Estimation in Distributed PV Systems

With the increased adoption of distributed energy resources (DER), they are expected to contribute to power system reliability services and enhance power system stability. This paper presents a distributed consensus control approach for the real-time active power reserve estimation and power management in distributed PV (photovoltaic) systems. The proposed method estimates the cumulative active power reserve from numerous PV generators using only the sparse communication network for a DER aggregator to provide active power regulation services. The real-time active power reserve estimation using the proposed approach can be used by DER aggregators to manage curtailment in distributed PV systems to maintain stipulated reserves and further to provide power system frequency regulation. Using the proposed approach, the DER aggregator only requires measurements at the feeder substation and it does not require information from individual DER units, thereby improving system resiliency. The proposed distributed consensus control method is validated on IEEE 123 testbed using PSCAD simulations.

active power reserve↗

Consensus-Based Approach for Active Power Control and Reserve Estimation in Distributed PV Systems: Preprint

With the increased adoption of distributed energy resources (DER), they are expected to contribute to power system reliability services and enhance power system stability. This paper presents a distributed consensus control approach for the real-time active power reserve estimation and power management in distributed PV (photovoltaic) systems. The proposed method estimates the cumulative active power reserve from numerous PV generators using only the sparse communication network for a DER aggregator to provide active power regulation services. The real-time active power reserve estimation using the proposed approach can be used by DER aggregators to manage curtailment in distributed PV systems to maintain stipulated reserves and further to provide power system frequency regulation. Using the proposed approach, the DER aggregator only requires measurements at the feeder substation and it does not require information from individual DER units, thereby improving system resiliency. The proposed distributed consensus control method is validated on IEEE 123 testbed using PSCAD simulations.

active power reserve↗

Enabling Evaluation of a Southern Company Distribution Feeder on NREL ADMS Test Bed: Cooperative Research and Development (Final Report)

The objective of this project is to enable evaluation of a Southern Company distribution feeder on the Advanced Distribution Management System (ADMS) test bed. The long-term goal is to evaluate a federated distributed energy resource (DER) management solution that aggregates DERs through either direct control, transactive control or an aggregator to provide bulk services while observing distribution system voltage and power constraints. The DER aggregation needs to be coordinated with an ADMS that is responsible for reliable power delivery across the distribution systems. This project takes the first step towards enabling such evaluation by deploying an ADMS from Oracle (Southern Company's ADMS supplier) with a Southern Company feeder at NREL.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Model-Predictive Hierarchical-Control Framework for Aggregating Residential DERs to Provide Grid Regulation Services

This paper develops a hierarchical control frame-work to aggregate and to manage behind-the-meter distributed energy resources (DERs), which will be ubiquitous in future distribution systems. In the proposed framework, firstly, each controller in the hierarchy determines the flexibility of the DERs such that the obtained flexibility is feasible with respect to its operational purview. For example, the operational purview of a home energy management system may only consider consumer comfort preferences, while that for an aggregator or a grid controller may consider network voltage management as well. Based on the feasible flexibility, optimal setpoints for the DERs is then determined by the hierarchical controllers to help the distribution power network in voltage regulation, coordination issues with existing transmission-level conventional generators, etc. Therefore, the proposed strategy, which is based on model-predictive control, can be effectively utilized by the distribution network to coordinate several DERs to provide grid regulation services. Numerical simulations performed on the IEEE 37-bus test system demonstrate the efficacy of the proposed approach.

behind-the-meter↗

A Model-Predictive Hierarchical-Control Framework for Aggregating Residential DERs to Provide Grid Regulation Services

This paper develops a hierarchical control frame-work to aggregate and to manage behind-the-meter distributed energy resources (DERs), which will be ubiquitous in future distribution systems. In the proposed framework, firstly, each controller in the hierarchy determines the flexibility of the DERs such that the obtained flexibility is feasible with respect to its operational purview. For example, the operational purview of a home energy management system may only consider consumer comfort preferences, while that for an aggregator or a grid controller may consider network voltage management as well. Based on the feasible flexibility, optimal setpoints for the DERs is then determined by the hierarchical controllers to help the distribution power network in voltage regulation, coordination issues with existing transmission-level conventional generators, etc. Therefore, the proposed strategy, which is based on model-predictive control, can be effectively utilized by the distribution network to coordinate several DERs to provide grid regulation services. Numerical simulations performed on the IEEE 37-bus test system demonstrate the efficacy of the proposed approach.

24 POWER TRANSMISSION AND DISTRIBUTION↗

A Model-Predictive Hierarchical-Control Framework for Aggregating Residential DERs to Provide Grid Regulation Services: Preprint

This paper develops a hierarchical control fram-ework to aggregate and control behind-the-meter distributed energy resources (DERs), which will be ubiquitous in future distribution systems. Even though the increasing penetration of DERs will strain the power networks in terms of voltage regul-ation and coordination issues with existing transmission-level conventional generators, the distribution-level DERs can also be utilized to help provide flexibility to the power network while providing cost savings to the DER owners. Therefore, this paper develops a model-predictive control strategy to determine the available power flexibility, and to utilize the flexibility in an aggregated form to provide grid regulation services. Numerical simulations performed on the IEEE 37-bus test system demonstrate the efficacy of the proposed approach.

14 SOLAR ENERGY↗

Incentivizing Distributed Energy Resource Participation in Grid Services

The bulk power system is experiencing a dramatic shift as renewable generation growth continues to accelerate. Large-scale renewables adoption will help societies transition to a low-carbon, low-cost, and environmentally friendly electrical power system. However, the transition from a paradigm of generation following load to one where load follows generation will require large-scale interconnection and coordinated operation of Distributed Energy Resources (DERs), supported by open communication protocols. In this future grid scenario, DER aggregations will provide critical grid services that enable high penetration levels of renewable generation. This position paper presents an Energy Service Interface (ESI) that defines scope for ensuring secure, trustworthy information exchange between grid service providers and DERs. The goal of the ESI is to encourage large-scale participation of DERs in order to provide grid services through dispatch of DER aggregations. This position paper also presents an open smart energy communications protocol that allows DERs to advertise their characteristics and participate in grid services, within constraints established by the ESI. The paper presents several monetization incentives that grid service providers could use to encourage large-scale DER participation.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗