Hierarchal framework for integrating distributed energy resources into distribution systems

Abstract

Methods and apparatus are disclosed for providing a hierarchical framework for integrating distributed energy resources into power distribution systems. In one example of the disclosed technology, a method implemented with an aggregation server includes receiving a respective utility function associated with each of at least two of a plurality of distributed energy resources representing an amount of energy produced or consumed by the respective associated distributed energy resource as a function of energy price, producing an aggregated utility function associated with the plurality of distributed energy resources based on the received utility functions, transmitting the produced aggregated utility function to a coordinator, receiving a clearing value from the coordinator, and transmitting the received clearing value to each of the plurality of distributed energy resources.