Cooperative Distributed Aggregation Algorithm for Demand Response using Distributed Energy Storage Devices

The growing number of Distributed Energy Resources (DER) in the power grid is increasing the management complexity for grid operators such as Independent System Operators (ISO). In this context, aggregators have emerged as new market participants to leverage the capacity of DERs at the system level, to reduce the control burden for the ISO. Recently, new Demand Response (DR) programs such as the Demand Response Auction Mechanism (DRAM) in California have been launched in wholesale markets by the ISO, aiming at further utilizing the capacity of the aggregated DERs for grid support. In this paper, the authors propose a fully distributed optimal aggregation algorithm to provide peak-hours DR to the grid, through peer-to-peer cooperation of a large fleet of Distributed Energy Storage Devices (DESD). The key features of the proposed algorithm include: 1) scalability to a large number of devices; 2) minimization of the battery degradation to prolong battery remaining useful life; 3) participation in aggregation without disclosure of each device's local private information; and 4) elimination of single-point-of-failure in aggregation systems. The effectiveness of the algorithm is demonstrated through numerical simulations using real residential data from Pecan Street database.