The present invention demonstrates a highly distributed demand response optimization and management system for real-time (DROMS-RT) power flow control to support large scale integration of distributed renewable generation into the grid. The system is a cloud-based platform that reduces critical peak power safely and securely. The arrangement is provided with a control and communications platform to allow highly dispatchable demand response (DR) services in timeframes suitable for providing ancillary services to the transmission grid. The services are substantially more efficient than other forms of ancillary service options currently available to manage the intermittency associated with large-scale renewable integration.