Stochastic Market Operation for Coordinated Transmission and Distribution Systems

This paper proposes a three-stage unit commitment model for the market operation of transmission and distribution coordination under the uncertainties of renewable generation and demand variations. The first stage is for the independent system operator (ISO) that determines the commitment decisions of the transmission-level generators and the distribution-level system reconfiguration; the second stage optimizes the transmission economic dispatch; then distribution system operators (DSOs) in the third stage perform their economic dispatch and exchange information with the ISO at the boundary nodes. Between the transmission and distribution networks, not only conventional thermal generators but renewables and variable demands are considered, which are tackled via a multi-stage stochastic programming approach. The model adopts a convexified AC branch flow formulation in the distribution system. We devise a generalized nested L-shaped algorithm to solve the proposed framework in an efficient manner. Numerical experiments on multi-scale test systems corroborate the efficacy of this strategy.