Title: Feedback Optimization of Incentives for Distribution Grid Services

Abstract: Energy prices and net power injection limitations regulate the operations in distribution grids and typically ensure that operational constraints are met. Nevertheless, unexpected or prolonged abnormal events could undermine the grid's functioning. During contingencies, customers could contribute effectively to sustaining the network by providing services. This paper proposes an incentive mechanism that promotes users' active participation by essentially altering the energy pricing rule. The incentives are modeled via a linear function whose parameters can be computed by the system operator (SO) by solving an optimization problem. Feedback-based optimization algorithms are then proposed to seek optimal incentives by leveraging measurements from the grid, even in the case when the SO does not have a full grid and customer information. Numerical simulations on a standard testbed validate the proposed approach.