Models of Distributed Energy Resources markets in distribution grid operations

The electric utility industry is investing significantly in multiple Distributed Energy Resources (DER) technologies including renewable, distributed generation, smart metering infrastructure, home energy smart devices and automation systems. Such investments are expected to encourage active engagement of end customers and distributed resources resulting into overall cost savings and greener environment. This fast voluminous growth of DER assets at different voltage levels on the electric distribution grid poses unique challenges and opportunities to grid operations. This paper describes a new paradigm for developing DER market models for advanced distribution grid operations enabled through a new generation of information and communications technology. Such models and associated algorithms illustrate the possibility of various novel approaches for significant incremental value additions to the DER asset investment. The paper concludes with the issues, risks and challenges in the proposed market model implementation.