Amalgamating TSO and DSO Energy Markets Through Minimal Data Exchange-Based Framework

Integration of distributed energy resources (DERs) in the distribution system (DS) raises the need to have a trading platform for their energy products. The evolution of distribution system operators (DSOs) facilitates the participation of DERs in the energy market at DS level. To utilize the potential of DERs in DS at the transmission level, an iterative coordinated market operations (CMO) scheme for a day-ahead energy market is proposed in this paper. In the proposed scheme, coordination between the transmission system operator and DSOs is established with limited exchange of information to realize an efficient and economical market framework. The communication procedure and time interval for data exchange during various intermediate operations, and convergence criteria of the proposed iterative scheme are defined. The main goal is to accommodate CMO into the existing market clearing mechanism with minimal changes. Case studies on four test systems demonstrate the viability of proposed scheme and the improvement in overall economics in comparison to the conventional method of market clearing as practiced or proposed in literature.