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Distribution System Congestion Management - A Survey of Reliable Integration for Aggregated Resources and Microgrids

Rising penetration of consumer-owned Distribution Grid Resources (DGRs), increasingly managed by third party aggregators and enrolled in grid services and wholesale market programs, can create localized congestion in distribution networks. Managing these constraints is challenging due to a persistent coordination and information gap: utilities are accountable for reliability and have network topology and state visibility, while aggregators control the DGR capability needed to relieve congestion. This survey synthesizes congestion management solutions for distribution systems with high DGR penetration, covering both market-based mechanisms (distribution level markets, locational pricing, flexibility auctions) and non-market-based solutions (network reconfiguration, direct DGR control, demand response, curtailment, etc.). The literature is organized across three decision horizons: long term planning, operational planning, and real-time operation. Special attention is devoted to emerging distribution system operator architectures and coordination frameworks spanning transmission system operators, aggregators, and microgrids. Drawing on recent case studies and implementations, we distill best practices, identify key technical and economic barriers, and outline research directions. The evidence points to a shift toward integrated congestion management that combines market signals with technical controls, enabled by improved monitoring, forecasting, and closed loop control capabilities.

Active Distribution Networks (ADN)↗

DSO+T: Transactive Energy Coordination Framework (DSO+T Study: Volume 3)

This report describes a transactive energy coordination scheme designed to integrate into existing day-ahead and real-time wholesale energy markets. This scheme was evaluated in the Distribution System Operator with Transactive (DSO+T) study to assess the engineering and economic performance of the transactive energy coordination of a large-scale deployment of distributed energy resources (DER). Transactive agents were developed for a range of DERs (heating, ventilation, and air conditioning units, water heaters, batteries, and electric vehicles) that optimize flexibility over a 48-hour horizon and adjust their strategy in response to changes in real-time prices. A transactive energy coordination scheme, executed by a DSO retail market operator, aggregates these DER bids from participating customers and clears them against a DSO supply curve using a double auction market mechanism. The process of constructing the price-quantity DSO supply curve includes distribution-level transportation constraints (for example, substation congestion limits) and forecast locational marginal price of the DSO’s connected transmission node. The resulting day-ahead and real-time quantities are then bid into a competitive wholesale market operated by an independent system operator. This report also details additional capabilities for proper marketplace simulation such as wholesale price, weather, and load forecasting. The report concludes with a discussion of lessons learned and key design features required to ensure successful operation.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DSO+T: Integrated System Simulation (DSO+T Study: Volume 2)

This report summarizes an integrated co-simulation model used by the Distribution System Operator with Transactive (DSO+T) study to represent an electrical generation, delivery, and end-load systems for the purposes of assessing the viability and value proposition of transactive energy coordination of flexible assets versus a business-as-usual case. The integrated co-simulation model includes the bulk generation and transmission system, including the day-ahead and real-time scheduling and dispatch of thermal generators. Forty distribution system operators were modelled in detail, including tens of thousands of residential and commercial buildings and their flexible end-loads. These included HVAC systems, residential water heaters, electric vehicles, and stationary, behind-the-meter, batteries. Both wholesale market and end-load results for the business-as-usual case are presented and compared to actual ERCOT system data to assess the accuracy and representativeness of the resulting model.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Large-Scale Simulation of Regional Demand Flexibility Implementation and Customer Economic Impact

The Distribution System Operator with Transactive (DSO+T) study conducted a large-scale simulation of over 60,000 customers in a region the size of Texas to demonstrate the effective coordination of distributed energy resources (DERs) in commercial and residential buildings. The integrated simulation included both the bulk (wholesale generation and transmission) and distribution systems. The DERs (including batteries, electric vehicles, air conditioning, and water heaters) participated in a transactive energy retail market that was integrated into an existing competitive wholesale market. The engineering and economic performance of the resulting demand flexibility was evaluated over annual simulations for both moderate and high renewable generation scenarios. A detailed parametric cost model was developed to enable detailed economic analysis of key stakeholders. In addition, fixed and dynamic customer tariffs were designed and applied to the customer population. This allowed the impact on annual customer bills to be analyzed for various building types (residential versus commercial; single- versus multi-family). This paper presents results showing the relative flexibility of batteries, electric vehicles, and building loads throughout the year and under different renewable scenarios. This feeds a detailed breakdown of the impact this flexibility has on the operating costs of the grid and the resulting net economic benefit. Finally, the study showed that practically all customer classes (including non-participating customers) save money under the proposed demand flexibility scheme. The study found overall net annual economic savings of $3.3-5.0B for a region the size of Texas equating to average customer bill savings of 10-16%.

Reeve, Hayden M.↗

Building Model Calibration: Validation of GridLAB-D Thermal Dynamics Modeling

This report investigates how well GridLAB-D’s house model characterizes the thermal dynamics of buildings given the overpredicted diurnal electric load swing observed in the Distribution System Operation with Transactive (DSO+T) study. This study seeks to validate GridLAB-D’s house model by calibrating it to data from the well-instrumented Pacific Northwest National Laboratory Lab Homes in Richland, WA. The datasets chosen included multiple pre-cooling and pre-heating testing periods where the indoor air temperature was allowed to float over a multi-hour length of time to mimic diurnal behavior. The multi-season calibrations were evaluated by comparing the heating/cooling electric power, indoor air temperature, and the rise/decay time during temperature float periods with Lab Homes data. The default GridLAB-D assumptions for latent load fraction, air heat capacity, mass heat capacity, window-to-wall-ratio, overall envelope conductance (assumed as NORMAL thermal integrity level), and solar heat gain coefficient were compared with the calibrated model to confirm when the default assumptions were adequate and the impact of calibration on the accuracy of modeling the thermal dynamics of homes.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Progressing Analysis of Variable Electric Rates (PAVER) Study

The Progressing Analysis of Variable Electric Rates (PAVER) study analyzed the impact of a range of time-varying electric rates on the performance of a regional electric grid and the resulting costs for participating and non-participating customers. This analysis leveraged and extended the work of PNNL’s Distribution System Operator with Transactive (DSO+T) study. Five different rate designs were included: a flat volumetric energy charge, a typical Time of Use (TOU) rate, a dynamic energy (DE) rate (based on wholesale locational marginal prices), a dynamic energy and capacity (DE+C) rate, and, finally, a Block and Swing (B&S) rate that billed customers based on their average load profile at constant pricing, but used the DE+C dynamic price for load deviations from their average profile. These rates were analyzed in a large-scale co-simulation of an entire regional grid with a customer population representative of the current state. A large fraction (80%) of residential and commercial customers were assumed to participate in these time-varying rates with automatically controlled HVAC, water heaters, electric vehicles, and batteries. This study assumed no industrial sector participation. The DE and DE+C rates saw system peak loads reduced by 6-7%, while the large participation in the TOU rate case saw a significant rebound effect and a resulting peak load increase of >5%. The impacts to the annual and peak system demand impacted system wholesale prices and the overall grid operating costs. This cost structure determined the revenue needed to be collected from customers by each rate design. Participating customers on the DE and DE+C rates (located in one of the modeled DSOs) saw reductions in average annual electricity bills of 11-17% with average increases in monthly bill variation of no more than 13%. At such high participation levels, TOU customers saw 10% higher average annual bills (due to system-wide rebound effects) and average increased monthly bill variation of 16%. Residential owners of large flexible loads (such as electric vehicles) saw larger bill savings (17-20%) when on a fully dynamic rate. The presence of on-site generation (such as rooftop solar) did not appear to appreciably change customer outcomes. Customers on the Block and Swing rate did see 6% lower monthly bill variation (as intended) than the flat rate case, but at the expense of appreciable bill savings, which were only 3%, comparable to the savings seen by non-participants. Given this finding we recommend that additional research be conducted into how best various bill protection mechanisms can balance minimizing customer bill variation with providing financial incentives commensurate with the flexibility customers provide. We also recommend that customer outcomes be explored across a range of regions using current actual customer and system cost data.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Hierarchical, Grid-Aware, and Economically Optimal Coordination of Distributed Energy Resources in Realistic Distribution Systems

Renewable portfolio standards are targeting high levels of variable solar photovoltaics (PV) in electric distribution systems, which makes reliability more challenging to maintain for distribution system operators (DSOs). Distributed energy resources (DERs), including smart, connected appliances and PV inverters, represent responsive grid resources that can provide flexibility to support the DSO in actively managing their networks to facilitate reliability under extreme levels of solar PV. This flexibility can also be used to optimize system operations with respect to economic signals from wholesale energy and ancillary service markets. Here, we present a novel hierarchical scheme that actively controls behind-the-meter DERs to reliably manage each unbalanced distribution feeder and exploits the available flexibility to ensure reliable operation and economically optimizes the entire distribution network. Each layer of the scheme employs advanced optimization methods at different timescales to ensure that the system operates within both grid and device limits. The hierarchy is validated in a large-scale realistic simulation based on data from the industry. Simulation results show that coordination of flexibility improves both system reliability and economics, and enables greater penetration of solar PV. Discussion is also provided on the practical viability of the required communications and controls to implement the presented scheme within a large DSO.

distribution network↗

Robust and resilient coordination of feeders with uncertain distributed energy resources: from real-time control to long-term planning

To enable flexible demand and ensure reliable and economical operation of distribution systems, we present a novel hierarchical scheme that actively coordinates responsive behind-the-meter grid resources, including distributed energy resources (DERs), to reliably manage each unbalanced distribution feeder and exploits the available flexibility to economically optimize the entire network. Each layer of the scheme employs advanced optimization methods at different timescales to ensure that the system operates within both grid and device limits. The hierarchy is validated in a large-scale realistic simulation based on data from the industry. Simulation results show that coordination of flexibility improves both system reliability and economics, and enables greater penetration of solar PV. Discussion is also provided on the practical viability of the required communications and controls to implement the presented scheme within a large DSO.

14 SOLAR ENERGY↗

Evaluation of Aggregated EV Flexibility With TSO-DSO Coordination

Electric vehicles (EVs) are becoming a promising source of grid ancillary services due to the temporal and spatial charging flexibility, quick response and storage capability. Such advantages are increasing with government policy promotion and technology improvement. However, the exploration of EV flexibility requires the coordination of both transmission system operators (TSOs) and distribution system operators (DSOs), to ensure the safe and reliable operation of power network. In this paper, we propose a coordinated evaluation method that determines the optimal utilization of EV temporal flexibility without compromising EV owners’ usage. At the distribution level, DSOs first evaluate EV aggregators’ operational boundaries to exploit distribution level services. At the transmission level, TSOs then determine EV charging schedules and ancillary service capacity simultaneously, taking into account the requirement from DSOs. Here, we validate the model in a case study using the IEEE 123 node test feeder and EV charging sessions obtained from a transportation simulation tool that uses real-world data.

33 ADVANCED PROPULSION SYSTEMS↗

Electric Vehicle Charging Management in Smart Energy Communities to Increase Renewable Energy Hosting Capacity

Abnormal climates due to global warming have emerged as a big concern in the global community. To mitigate climate change and achieve sustainability, distributed energy resources (DERs), including solar and wind, have been recently deployed in power systems. As the penetration level of DERs has increased, however, it caused a multitude of issues in the power systems, such as voltage fluctuation in the distribution network limiting renewable hosting capacity. On the other hand, the electric vehicle (EV) industry is rapidly growing to facilitate the transition to a carbon-neutral community, illuminating the potential of EVs as a flexible grid asset to mitigate some of the issues and improve grid operation, if properly exploited. To explore the potential of EVs, this paper proposes an EV scheduling strategy. By using an optimal EV charging scheduling proposed, distribution system operators (DSOs) can minimize their operating costs and stably operate the system with a high level of DERs. To validate the method, a modified IEEE 33-bus system with DERs is developed. The case study shows the proposed scheduling strategizes EV charging to reduce the cost of PV curtailment. In the study, the method outperforms the renewable-only case with curtailment by 4.97% in DSO cost. It also demonstrates its potential to increase the renewable hosting capacity by harmonizing EV charging with renewables.

ADVANCED PROPULSION SYSTEMS,POWER TRANSMISSION AND↗

Unbundling Smart Meter Services Through Spatio-Temporal Decomposition Agents in DER-rich Environment

Smart meters and the advanced metering infrastructure (AMI) facilitate distribution system operators (DSOs) to gather information on energy consumption at the customer level. With the increasing penetration of building-level intermittent distributed energy resources (DERs) behind the meter, DER information is not available to DSOs. At the same time, smart meter enables users to participate in grid, with real-time information. Information for behind the meter is needed by user to coordinate building level assets for maximum benefits. The concept of unbundled smart meter (USM) needs agents to decompose smart meter measurements to provide service to DSO as well as customers. In this paper, we propose a Spatio-Temporal Decomposition Agent (STDA) for USM based on Artificial Intelligence (AI). STDA can help users optimize their energy usage, help DSO to utilize building assets for the grid operation. The energy usage strategy developed by STDA is suitable for different users, and can be customized by deep learning (DL) models according to the different energy consumption habits of each user. The power prediction performance results of various DL models and evaluation using a set of data from a Hawaii utility is presented. Furthermore, STDA integration with Home Energy management Systems (HEMS) to manage resources is presented and validated. STDA pre-processes the measurements before model training, and provides the spatio-temporal decomposed forecasting.

42 ENGINEERING↗

The Evolving U.S. Distribution System: Technologies, Architectures, and Regulations for Realizing a Transactive Energy Marketplace

As pockets of the U.S. experience growing penetrations of distributed energy resources (DERs), the traditional practices underpinning distribution system regulation, operation, and management are evolving. The challenges and opportunities that DERs pose are driving stakeholders across the United States to reconsider regulatory goals, utility business models, ratemaking, and grid architectures. This report reviews the evolution of the U.S. distribution system from the advent of the utility-as-regulated-monopoly business model to the technological and regulatory shifts happening. The report concludes with a discussion of transactive energy systems and summarizes some of the leading RD&D happening in this field.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

SCUC-DER Integration Report: Integrating Distributed Energy Resources (DER) Using Advanced Unit Commitment Models and DER Aggregation Methodologies

Distributed energy resources (DERs) are continuing to grow due to regulatory, policy, and market shifts, and it needs to be ensured that small DERs are given a level playing field with traditional resources. Legacy market processes such as unit-commitment problems were designed for a power grid consisting largely of centralized power plants. In contrast, DERs consist of many small devices with distinct operating characteristics that may or may not be connected at the transmission interconnection points, limiting their visibility to the independent system operators (ISOs) who operate wholesale electricity markets. This report details the development and initial results from a simulation platform that integrates state-of-the-art security-constrained unit commitment software, detailed feeder models, and a DER aggregator model to quantify potential DER integration issues. Quantitative results to date illustrate potential infeasible scheduling solutions from SCUC when the DERA includes aggregations of energy-limited energy storage resources. Likewise, if aggregations are not penalized for dispatch deviations, they may have incentives to deviate from the SCUC-determined resource schedules. Assumptions about the amount of aggregated demand response resources (DRRs) and the ability of DERAs to follow profit incentives have an important impact – DRRs have significant flexibility and can typically feasibly meet their SCUC schedule, but on the other hand, their profit incentives can cause unscheduled increases in load before and after DRR dispatch. Computation time results on the SCUC solver and simulation platform only show a modest increase in SCUC solution time as the number of DERAs is increased, but results to date only reflect the RTS-GMLC test system; results may show more significant solver slowdown in larger transmission systems. The largest contribution to simulation time is attributed to the DERA offer generation method, which is suggested for future improvements.

24 POWER TRANSMISSION AND DISTRIBUTION↗