DLMP-based Coordination Procedure for Decentralized Demand Response under Distribution Network Constraints
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Load aggregators are independent private entities whose goal is to optimize energy consumption flexibilities offered by multiple residential consumers. Although aggregators optimize their decisions in a decentralized way, they are indirectly linked together if their respective consumers belong to the same distribution grid. Thus, a major issue for the distribution system operator (DSO), responsible of the good operation of the distribution network, is to ensure that the decentralized decisions taken do not violate the grid constraints and do not increase the global system costs. The problem is also challenging from the information point of view as the network state and characteristics usually constitute confidential information for the DSO. To address this issue, we propose a decentralized coordination procedure between the DSO and multiple aggregators. The procedure, based on distribution locational marginal prices (DLMP), preserves the decentralized structure of information and decisions, and lead to a feasible and optimal solution for the aggregators and the DSO.
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