Abstract
The proliferation of distributed energy resources (DER) under diverse jurisdiction in distribution networks raises new challenges to the utility. Indeed, when directly participating in the independent system operator's (ISO) energy market and following market clearing instructions, DERs could compete with the utility-controlled DERs on utilizing available distribution network capacities. This letter proposes the concept of dispatch insurance by leveraging financial interests of the utility and market participating DERs to resolve the conflict issue.
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