Coordinated Market Clearing Model of Active Distribution Network with TSO

Growing dissemination of distributed energy resources (DERs) has led to the rapid expansion of distribution networks. Distribution system operators (DSOs) tend to employ optimal scheduling to arrange controllable DERs to meet load demand or exist in the reserve markets to provide reserve capacity. When DERs participate in the reserve market, the market clearing strategy of the transmission and distribution network managed by transmission system operators (TSO) and DSO has changed. Therefore, this study constructs a bi-level optimization problem for the clearing strategy of a DSO in energy and reserve markets, and the operating problems of two independent system operators are classified as upper and lower level problems. The proposed nonlinear bi-level problem is transformed into a single-level mixed integer linear programming model using the Karush-Kuhn-Tucker condition and duality theory. Case studies demonstrate the model's effectiveness.