A DSO Framework for Market Participation of DER Aggregators in Unbalanced Distribution Networks

This paper presents a distribution system operator (DSO) framework for wholesale and retail market participation of distributed energy resources (DERs) aggregators. The DSO coordinates aggregators’ energy and regulation offers as well as end-users’ energy consumption through the unbalanced retail market and submits balanced energy and regulation offers to the wholesale market on behalf of all the aggregators and end-users within its territory. Various kinds of DER aggregators including demand response aggregators (DRAGs), energy storage aggregators (ESAGs), electric vehicle (EV) charging stations (EVCSs), dispatchable distributed generation aggregators (DDGAGs), and renewable energy aggregators (REAGs) are modeled. To handle unbalanced distribution grids with single-phase aggregators, a linearized unbalanced power flow is tailored to model operating constraints of the distribution grid with various aggregators. A market settlement approach is proposed for the DSO, which coordinates with wholesale market clearing process and ensures the DSO’s non-profit characteristic. It is proved that at the wholesale-DSO coupling substation, the total payment received/compensated by the DSO under the wholesale price is identical to that under three single-phase retail prices for each phase at the substation. Case studies are performed on the modified IEEE 33-node and 240-node distribution test systems to investigate the market outcomes of the proposed DSO.