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This paper describes requirements for an intelligent local controller for smart grids. The controller manages the operation of a portion of the power system to achieve customer-configured preferences for reliability and power quality through the combined use of local generation and storage sources, responsive load, power conditioning, and standby electric service from the supply system. The controller coordinates the set points for local distributed generation and storage devices and provides an interface to the supply system for electricity market participation. Through ongoing optimization and information exchange, the controller coordinates local response to actual system and market conditions. Enabling automation of end-use customer preferences for electric service, the local controller represents a key technology component for smart grids.
Chuang et al. (Tue,) studied this question.