Quantifying and Optimizing the Time-Coupled Flexibilities at the Distribution-Level for TSO-DSO Coordination

Abstract

The flexibilities provided by the distributed energy resources (DERs) in distribution systems enable the coordination of transmission system operator (TSO) and distribution system operators (DSOs). At the distribution level, the flexibilities should be optimized for participation in the transmission system operation. This paper first proposes a flexibility quantification method that quantifies the costs of providing flexibilities and their values to the DSO in the TSO-DSO coordination. Compared with traditional power-range-based quantification approaches that are mainly suitable for generators, the proposed method can directly capture the time-coupling characteristics of DERs' individual and aggregated flexibility regions. Based on the quantification method, we further propose a DSO optimization model to activate the flexibilities from DER aggregators in the distribution system for energy arbitrage and ancillary services provision in the transmission system, along with a revenue allocation strategy that ensures a non-profit DSO. Numerical tests on the IEEE test system verify the proposed methods.