A distribution management system for implementing synthetic regulation reserve

With high renewable integration and changing consumer patterns, it has become hard to predict fast load deviations using historic data. To ensure acceptable frequency, the industry must rely on many small end users providing synthetic reserves instead of on requiring regulation reserves by generators. In this paper, a distribution management system is introduced to support such regulation services. Mathematical formulations of both end-user decision making to bid and the coordinating mechanism for bid clearing are defined. A droop-based physical implementation of bids is elucidated. Finally, a real world microgrid system is used to demonstrate potential benefits obtainable by participation of consumer devices in energy and/or regulation reserve market. Open questions remain such as representation of uncertainties and their impact on outcomes.