Modeling of Complex Systems Including Transmission, Distribution, Aggregation, Ancillary Services Markets

With an increased deployment of DERs, and a supporting distribution grid ICT infrastructure in place, the flexibility potential of these resources can be utilized to provide services both locally and for overall system – to a mutual benefit of DER owners and system operator. In order to achieve this there is a need to coordinate TSOs and DSOs, as discussed in Chap. 2, as well as to implement new market architectures, as detailed in this chapter, so as to manage flexibility offers from DERs.

For the most part, this chapter provides mathematical models of different market framework components: aggregation of flexibility offers from DERs, ancillary services (AS) market architecture, market arbitrage, transmission, and distribution network models. In addition, this chapter discusses the computational complexity aspects of the market clearing algorithm and, in context of this, how the key AS market parameters, as well as the choice of the TSO-DSO coordination scheme, impact its tractability.