New Distributed Optimization Method for TSO–DSO Coordinated Grid Operation Preserving Power System Operator Sovereignty

Electrical power system operators (SOs) are free to realize grid operations according to their own strategies. However, because resulting power flows also depend on the actions of neighboring SOs, appropriate coordination is needed to improve the resulting system states from an overall perspective and from an individual SO perspective. In this paper, a new method is presented that preserves the data integrity of the SOs and their independent operation of their grids. This method is compared with a non-coordinated local control and another sequential method that has been identified as the most promising distributed optimization method in previous research. The time series simulations use transformer tap positioning as well as generation unit voltage setpoints and reactive power injections as flexibilities. The methods are tested on a multi-voltage, multi-SO, realistic benchmark grid with different objective combinations of the SOs. In conclusion, the results of the new method are much closer to the theoretical optimum represented by central optimization than those of the other two methods. Furthermore, the introduced method integrates a sophisticated procedure to provide fairness between SOs that is missing in other methods.