New dispatching strategy for the integration of active-demand and distributed storage in the electricity market

Abstract

The proliferation of Distributed Generation (DG) in power systems calls for a redesign of electricity network management, which should be able to accommodate large amounts of intermittent generation. This issue requires a discussion about the current dispatching regulation, giving distributed storage systems and qualified electricity consumption the opportunity to provide ancillary services to the distribution grid. In this work, a new dispatching strategy for the integration of active-demand and distributed storage in the Italian electricity market is presented. The strategy is focused on a distribution Smart Grid (SG), where customers can indirectly participate to the Day-Ahead (DA) and the Ancillary Services Market (ASM) through a load aggregator, able to manage the consumers' flexible consumption through Direct Load Control (DLC). The dispatching strategy is described both in the architectural framework and in the functional aspects. The proposed dispatching strategy has been designed in order to fit the current Italian electricity market, giving the opportunity to increase the electricity market flexibility, ensuring a reduction of electricity zonal prices and contributing to the benefit of all the players involved.