System operator models in distributed energy resources (DERs) refer to mathematical models that simulate the operation of the power system with the integration of DERs. These models help system operators understand how the integration of DERs affects the power system and make informed decisions about managing the integration of DERs into the grid.
Previously there were Distribution Network Operators (DNO), which is today’s standard. But, with innovation, it is proposed to have Distribution System Operator (DSO).
One potential model to provide this function is the distribution system operator (DSO). The DSO would provide the same function for distributed energy resource dispatch, distribution system operations, and facilitation of distributed markets that ISOs provide for the bulk electric system. Like ISOs, the DSO would be unbiased without ties to any market participant. The DSO would interact with the distribution utility, which would likely become a distribution network operator (DNO), simply responsible for maintaining and operating the distribution facilities, much like a transmission operator (TO) in the ISO model. To facilitate active retail markets, the DSO would bid aggregated distributed resources into competitive ISO wholesale markets in competition with centralized generators.