Remuneration of distributed generation and demand response resources considering scheduling and aggregation

The distribution generation and demand response remuneration practices, used by most aggregation entities, considers simple characteristics as the type of resource. This evaluation may cause a non optimized tariff definition in most cases. For this paper, a Virtual Power Player as aggregator is considered, which is able to make clusters of both producers and consumers. The proposed methodology defines a set of steps that allows the aggregator to choose between different remuneration scenarios. These steps include the scheduling and aggregation of resources, considering distinct input data and the use of an hierarchical clustering algorithm. The remuneration considers the use of, type of resource, maximum price, minimum and average price, and also statistical tools, more specifically, standard deviation in each defined cluster. The case study consists of 548 distributed generators, 10 suppliers and 20310 consumers, a real Portuguese network.