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Challenges of Defining Direct (Scalar-based) or Indirect (Price-based) Control Signals for DERs to Access the Market Directly or Through Aggregators

Which one of the four market designs listed in Section 3 is most suited for integrating DERs in an energy system with a large share of variable DERs?

Would it be possible for the price signals to be sent from the MO instead of the AGG? Please explain challenges and advantages.

Would it be possible to broadcast the imbalance cost of the current RPM as a price signal for DERs to react on? What are the challenges and why? When should this broadcast be enabled? Before or shortly after time of operation?

For a DER to do an economic optimization, should the price forecast come from the AGG or an external commercial forecast provider? Does the answer depend on where the price signal comes from (AGG/MO)? Please explain.

What is the most appropriate control strategy for AGGs to utilize flexibility of DERs in electricity markets? Indirect or direct control? Does the answer depend on market design, energy mix, rules and regulations, etc.? Please explain.

Which control approach (indirect/direct) is feasible from technical and economic points of view? What are the potential obstacles of its commercial application? What about other approaches?

How should DERs interpret the scalar-based signals in the indirect control scheme? How do we ensure that DERs react to the signal as expected from the AGG?

What are the main challenges and advantages of price-based control compared to scalar-based control in the context of Pilot B?

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