- This project investigates the potential of a voluntary incentive-based demand response program in limiting the operating risks of future sustainable distribution power grids. The approach is to (1) create and assess real-world experiments of coupon incentive-based demand response (CIDR) in representative distribution grids; (2) formulate optimization-oriented CIDR models by taking into account heterogeneous consumers and risk aware load serving entities (LSEs); (3) introduce efficient algorithms for computing risk and welfare outcomes from CIDR; and (4) design and test novel mechanisms tailored for LSEs'' risk-averse objectives. The research activities include stochastic modeling of distribution-level grid operations, design of algorithms and incentive mechanisms, and real-world tests of CIDRs in representative distribution grids. By providing a cyber-enabled sustainable pathway towards deep integration of intelligent decision makers in the smart distribution grid, this project leads toward an overall cost-effective and environmentally benign utilization of a future energy system portfolio. The research program is strongly coupled with an educational effort to train future leaders in the smart grid industry. A new interdisciplinary course on cyber-enabled engineering and economics of sustainable energy systems is offered to students across multiple universities, including Texas A&M and UC Berkeley. As mentors in a NSF REU program at Texas A&M, the team works directly with undergraduate students, in particular under-represented groups, to empirically test and improve the smart phone CIDR application. The team also plans to actively participate in the community outreach activities such as summer open house activities for high school students and teachers.