An IGDT-based multi-criteria TSO-DSO coordination scheme for simultaneously clearing wholesale and retail electricity auctions

The electrical engineering world has encountered various issues due to integrating distributed energy resources in wholesale and retail electricity markets from various policy, modeling, and implementation perspectives. Hence, distribution system operators must be as more involved in operation of next-generation electricity markets as transmission system operators are. This paper proposes a new decentralized framework for clearing simultaneously both wholesale and retail electricity markets, focusing on various essential technical-economic analyses to explore major pros and cons in comparison with a centralized management strategy and two prevalent schemes. The proposed framework is based on optimality condition decomposition and is practically compatible with the liberalization rules of the EU's Third Energy Package, so that achieves optimal solution of the theoretical models with a desirable solution precision in few clock time/iterations, without need for central coordinators or intermediary entities. Also, uncertainties of load demands and wind generation units are modeled by a new two-stage method based on information gap decision theory, in which the first stage obtains outcomes for next-hour market, and related deviations due to the mentioned uncertainties in real-time scenarios are explored in the second stage. The simulation results on 3-bus:15-node and IEEE 118-bus:33-node test systems confirm that the proposed method is the most applicable, mathematical feasible, successful in addressing severe uncertainties, and efficient in maximum utilization of distributed energy resources with thoroughly fair market prices; and in one sentence, this method is efficacious for implementation of short-term electricity markets and long-term strategic studies. (C) 2022 Elsevier Ltd. All rights reserved.

Automated summary

This paper proposes a new decentralized framework for clearing both wholesale and retail electricity markets, and explores its pros and cons compared to centralized management and other schemes. The framework is based on optimality condition decomposition and complies with the liberalization rules of the EU.