Tri-level TSO/DSO Coordination Approach Considering Active Interaction with the Flexibility of Microgrid Aggregators

Abstract

The growing integration of renewable energy sources and the increasing complexity of electricity grids bring about a need for effective coordination between Transmission System Operator (TSO) and Distribution System Operator (DSO). In this paper, a new tri-level power system coordination between TSO, DSO and microgrid aggregators (MAs) is proposed by using distributed modelling via Alternating Direction Method of Multipliers. While TSO clears the wholesale market and provide the locational marginal prices considering the DSO participation, DSO clears the spot market and provide the distribution locational marginal prices considering active interaction with the flexibility of MAs such as electric vehicles and energy storage systems. Furthermore, AC power flow for both systems is applied for not only providing economic coordination but also ensuring coordination on possible technical issues such as voltage fluctuation.