TSO-DSO Coordination in Decentralized Ancillary Services Markets

Distributed Energy Resources, located in the distribution networks are becoming a key component of the undergoing power system transformation. The proactive management of these resources in the ancillary services markets, can influence positively the transition of the energy system, leading to higher integration of renewable resources. This paper investigates the operation of various ancillary services' market schemes, aiming to increase the services provided by the resources located in the distribution network. The investigated market schemes are modeled using DC-optimal power flow, while focusing on services related to energy balancing and congestion management. The cooperation of system operators (transmission and distribution) is investigated to promote the active participation of distributed energy resources. The proposed formulation is demonstrated on a combined transmission and distribution network, considering unbalances, driven by forecast error, in the renewable generation.