Robust prequalification process of a distribution system operator considering N‐1 contingency

Abstract A distributed energy resource aggregator (DERA) participates in the wholesale energy market (WEM) on behalf of aggregated distributed renewable energy sources (DRESs). The DERA manages DRESs according to the dispatch signal from the system operator (SO). However, a conventional independent SO that operates the WEM and transmission system does not monitor the distribution system. Therefore, overvoltage or overflow problems can occur during the generation of DRESs in a distribution system in which bids are accepted in the WEM. To address these problems, previous studies proposed the prequalification process. In the process, a distribution SO (DSO), which is responsible for the reliability of the distribution system, reviews DERA's bids before it is submitted to the WEM. However, these studies do not consider the outages of the system components. Therefore, we propose an N‐1 contingency prequalification process (N‐1 PP). The DSO manages the DERA's bid considering both the uncertainties and system states after the reconfiguration in contingency situations. In the proposed scheme, the DERA's bid is reviewed for severe faults and post‐reconfiguration systems. The results indicate that the N‐1 PP is more stable and durable than the prequalification process of previous studies.