Performance-Based Regulation Framework for Demand-side Management

A regulatory framework is presented to motivate distribution companies (DISCOs) to install energy storage systems (ESSs) in their distribution system. The reward-penalty schemes (RPS) is utilized as an effective tool. The necessity of ESSs usage in distribution system is vital, since it can compensate peak time demand. Performance-based regulation (PBR) can play sensible rule in restraining peak of load without need to increase of generation and transmission level. Ultimately, the presented PBR framework is illustratively applied to the test distribution system connected to the bus number six of Roy-Bllington test system (RBTS). Results show the effectiveness of the incentive method, improving distribution system reliability and decreasing interruptions.