Distributed Energy Resource and Energy Storage Investment for Enhancing Flexibility Under a TSO-DSO Coordination Framework

Abstract

This paper presents a distributed energy resource and energy storage investment method under a coordination framework between transmission system operators (TSOs) and distribution system operators (DSOs), which simultaneously addresses two main aspects of the flexibility aggregation of DSOs, i.e., flexibility enhancement and dynamic flexibility provision. First, to characterize the key flexibility features of power distribution networks, a multi-port multi-period feasible region formulation is designed using the robust optimization conception while avoiding over-parameterized formulations that require extensive information exchange. Second, a two-stage robust planning model is built to enhance distribution system flexibility by maximizing the volume of feasible regions, in which the uncertainty of dispatch instructions is modeled as a decision-dependent uncertainty (DDU) set and the worst realization is identified for the operational security evaluation. The proposed two-stage robust planning model is solved via a customized column-and-constraint generation algorithm. Finally, a distributed framework for TSO-DSO coordination is proposed to enable the dynamic adjustment of feasible region provision of DSO, given the TSO’s preference, which is then solved by a DDU-based two-stage robust extension of the alternating direction method of multipliers algorithm. Numerical results verify the effectiveness of our proposed models and the scalability of the associated algorithm. <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Note to Practitioners</i> —The increasing integration of renewable energy resources has stimulated the need for aggregated flexibility provided by power distribution networks (PDNs). However, there are three challenges: i) using the currently feasible region formulation of PDN requires extensive information exchange with the transmission system operator (TSO), thus not compatible with the current structure. ii) the optimal investment of various assets to leverage their cost-effectiveness in feasible region enhancement needs to be addressed. iii) lack of a proper coordination mechanism between TSO and distribution system operators (DSOs) to facilitate the optimal feasible region provision and leverage the spatiotemporal flexibility. To address the above challenges, we design an easy-to-implement feasible region formulation to characterize the key flexibility features of PDNs. Upon this, we propose a feasible region enhancement planning method based on an extended two-stage robust model to address the decision-dependent uncertainty. Furthermore, we facilitate the optimal feasible region provision through the TSO-DSO coordination process in a distributed manner. The numerical results show that the proposed planning method and coordination mechanism could effectively achieve optimal flexibility enhancement and dynamic flexibility provision. In practical application, our proposed planning method can be readily implemented with advanced analytical tools. The coordination mechanism is also compatible with the current TSO-DSO structure and can be easily integrated into it.