Congestion Management Solutions for Enhanced Distribution System Operations with Aggregated Distribution Grid Resources Providing Grid Services and Market Participation
Microgrids and other aggregations of distribution grid resources (DGRs) are poised to actively participate in electricity markets and provide essential grid services in the coming years. In fact, DGRs already play such a role through behind-the-meter (BTM) demand response programs and small-scale BTM dispatchable generation initiatives. At the same time, the rapid growth of artificial intelligence (AI) and cryptocurrency datacenters imposes significant, often unpredictable, demands on the power distribution system. Aggregated DGRs can serve as flexible resources that help mitigate these pressures by using available transmission and distribution capacity more efficiently, supporting resource adequacy and other reliability services, and providing bridge strategies while long-term transmission infrastructure is being developed. The impacts this activity will have on distribution networks are not fully understood and could present significant challenges for distribution utilities due to capacity constraints and the need for congestion management. Technical issues include reverse power flow, variability and possible degradation of equipment integrity, voltage violations, and customer power quality concerns. These issues will likely intensify as electricity market operators across the United States implement Federal Energy Regulatory Commission Order 2222 over the next few years.