Market-Based Coordination of Transmission and Distribution Network Planning with Distributed Energy Resources Planning

Abstract

Distributed energy resources (DERs) have the potential for the non-lines alternative in both transmission and distribution (T&D) systems. However, the value of DERs in substituting power lines in T&D systems is not revealed and coordinated planning of T&D networks and DERs under market environment is not studied in existing researches. This may damage the interests of DER investors, hinder the wide integration of DERs in power system and increase total cost under market environment. This paper proposes market-based coordination of transmission and distribution network planning (TDNP) with DER planning (DERP). The model is formulated as multi-stage programming. In first stage, transmission companies (TRANSCOs), distribution companies (DISCOs), and DER aggregators (DERAs) send their bidding plans to independent system operator (ISO) and distribution system operators (DSOs), respectively. In second stage, ISO and DSOs check the transmission and distribution network securities, respectively. In third stage, ISO and DSOs solve their optimal operation problems, respectively. An iterative solution algorithm is proposed to solve the multistage model. The solution embodies the interaction process among TRANSCOs, DISCOs, DERAs, ISO, and DSOs in electricity market. Numerical results demonstrate that the proposed model coordinates TDNP with DERP, promotes DER installations and reduces the total cost.