Abstract

Large-scale demand response (DR) is a promising solution to mitigate the problem of renewable energy (RE) curtailment with the rising proliferation of RE in both the transmission system (TS) and distribution system (DS). However, the current DR schemes face significant limitations when applied at a large scale, and the lack of consideration of TS and DS networks stymies the potential of large-scale DR in facilitating RE accommodation. To address these gaps, this paper proposes a novel hierarchical DR scheme based on locational customer directrix load (LCDL) that takes into account both TS and DS, involving interactions among tri-layer entities: the transmission system operator, distribution system operators, and customers. Firstly, the concept of LCDLs is proposed to characterize the desired load profiles at various locations, considering the constraints of both TS and DS networks. Subsequently, transmission-level and distribution-level LCDLs are formulated respectively and leveraged to induce the load reshaping of flexible resources at pertinent locations, thereby unlocking the deliverable flexibilities over TS and DS. Furthermore, the collaborative interaction among the three layers is depicted by a two-loop Stackelberg game, and a distributed algorithm is presented to achieve an equilibrium solution without compromising the privacy of the respective entities. Case studies testify that the proposed DR scheme significantly enhances the capacity to accommodate RE in both TS and DS, maintains economic balance in the trading process of DR services, and benefits all involved entities. Conducted on a practical city power grid with a substantial share of RE and DR customers, the simulation test validates the scalability of the proposed DR scheme and results show that with a 10% increment of DR customers in one DS, the RE curtailment rate could be reduced by 3% and 15% for TS and DS, respectively.

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