Incentives for Demand Response and Flexibility Services Procured from Energy Storage Systems

With increasing penetration of renewable energy resources and uncertainty in electricity market prices, Energy Storage Systems (ESS) can play an important role by providing the Distribution System Operator (DSO) with Demand Response (DR) and flexibility services. This work proposes a bilevel optimization approach to determine the incentives for DR and flexibility offered by the DSO (leader) considering ESS as service providers (followers). The proposed model preserves the participants' rights to control their flexible resources while ensuring monetary benefits for them.