RAMP: Impact of rule based aggregator business model for residential microgrid of prosumers including distributed energy resources

This paper discusses an economically profitable way to deploy a residential microgrid incorporating a new market entity “residential aggregator” between the prosumers and the Utility. In this residential microgrid, the residential aggregators will have better negotiating capabilities (e.g. in the DR programs) in the electricity market and therefore will be able to bring economic advantages to all participating stakeholders (prosumers, Utility, and aggregator). However, to implement such a microgrid, various rules regarding electricity pricing will need to be put in place. This paper highlights such rules and their impacts, and two example use cases are used to show the different types of distributed energy resources that would be required for profitable residential microgrid deployment.