Day-ahead Energy Market Framework Utilizing Transmission-Distribution Coordination

The penetration of Distributed Energy Resources (DERs) in the distribution system (DS) is expanding with time. This has raised the need of having a distribution system operator (DSO) that encourages the participation of DERs in the energy market. However, there could be a disagreement in the primary objectives of each DSO with the transmission system operator's (TSO's) objective. Thus, there will be a shortfall of cooperation across the system. Moreover, if TSO has direct control of DERs, then a huge computational burden will get introduced at the transmission level. Hence, the coordination between TSO and DSOs is required to take advantage of the resources available in DS at the transmission level. In this paper, a coordinated energy market framework is presented that involves the exchange of limited information at the common bus of connection. This will allow the efficient and economical utilization of cheaper and greener resources available in DS for the entire transmission & distribution (T&D) network without adding much communication burden and complexity. The proposed framework is implemented on an integrated T&D test system to validate its efficacy.