Calculation Framework of Parameters in Management of Distributed Energy Resources Considering Balance of Power Supply and Demand

This paper presents a framework calculating parameters in distributed energy resource (DER) management. It is designed for retail power suppliers holding energy resource aggregator’s functions. The calculation framework includes two models of demand response (DR) programs: one is price-based DR, and the other is incentive-based one. For each DR program, the parameters are electricity prices or rebate levels. The authors formulate a power trade between the retail power suppliers and their consumers as a social welfare maximization (SWM) problem. From the viewpoint of SWM, the authors theoretically design the way to set the parameters of the DER management with maximizing the social welfare, while reducing imbalance between power supply and demand. The social welfare is defined as the sum of the retail power suppliers’ surplus and the consumers’ one in this paper. Through numerical simulations, the authors validate that the calculation framework induces the amount of power consumption to the target value of the DER management and increases the social welfare with reducing the power imbalance.