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Integrating Ancillary Services From Demand Side Management and Distributed Generation: An Optimal Model

This paper presents an optmization model for integrating ancillary services from demand side management and distributed generation through the concept of the aggregator. The objective is to optimize the interaction between transmission and distribution system operators, including exchange of information for monitoring and acquisition of ancillary services: reserve and balancing, voltage regulation, congestion management, both for local needs and for the entire power system. The model is based on the Spanish coordination scheme for implement balancing services and congestion management for the distribution network through direct bidirectional signals to the aggregator. The model also considers local market clearing activities regarding bidding and clearing for flexibility management.