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Distributed energy resources (DERs) are playing an increasing role inancillary services for the bulk grid, particularly in frequency regulation. Inthis paper, we propose a framework for collections of DERs, combined to formmicrogrids and controlled by aggregators, to participate in frequencyregulation markets. Our approach covers both the identification of bids for themarket clearing stage and the mechanisms for the real-time allocation of theregulation signal. The proposed framework is hierarchical, consisting of a toplayer and a bottom layer. The top layer consists of the aggregatorscommunicating in a distributed fashion to optimally disaggregate the regulationsignal requested by the system operator. The bottom layer consists of the DERsinside each microgrid whose power levels are adjusted so that the tie linepower matches the output of the corresponding aggregator in the top layer. Thecoordination at the top layer requires the knowledge of cost functions, ramprates and capacity bounds of the aggregators. We develop meaningfulabstractions for these quantities respecting the power flow constraints andtaking into account the load uncertainties, and propose a provably correctdistributed algorithm for optimal disaggregation of regulation signal amongstthe microgrids.

Enabling DER Participation in Frequency Regulation Markets