Network-aware co-optimisation of residential DER in energy and FCAS markets

Abstract

With the increasing uptake of distributed energy resources (DER), such as rooftop PV and batteries, a significant amount of electricity is generated at a smaller scale. Consequently, the large-scale generators, responsible for frequency response, are having less share in our electricity markets. This makes it challenging to provide the grid with the required frequency response. To overcome this challenge, we introduce a network-aware co-optimisation approach that enables consumers to co-optimise their DER in energy and frequency markets. Our approach is based on the alternating direction method of multipliers where consumers and the grid negotiate on a receding horizon framework to obtain consensus solutions which satisfy the grid constraints under all operating conditions. Our experiments on 69 and 141 bus networks show a significant improvement over a case where decisions are not co-optimised. We also show how, compared to the majority of the literature, we can avoid network violations.