Management and Performance Evaluation of DSR Aggregator Based on a Bi-Level Optimization Model.

The vast potential of demand-side resources (DSR)—including flexible loads and distributed energy resources—in the optimal operation of a power system is being increasingly recognized. Such potential can be fully realized through the access of a DSR aggregator to the power market. In this paper, a DSR aggregator is introduced for the collective management of DSRs in the power system. A bi-level optimization model consisting of power market clearing and DSR aggregator internal scheduling is formulated and solved through stochastic programing. A thorough evaluation of the DSR aggregator's performance under three different operation modes, namely energy consumer mode, energy prosumer mode, and eco-friendliness mode, is carried out to study its influence on system operation concerning social welfare, system purchase cost, carbon emission, and so on. Simulation results show that even though DSR acquires a segment of the market social welfare, it brings in benefits in economic and environmental operation of the system and contributes to DSR uncertainty alleviation. © 2018 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc. [ABSTRACT FROM AUTHOR]