This study focuses on developing an integrated transmission and distribution framework that couples the two sub-systems together with due consideration to conventional demand flexibility. The proposed framework ensures accurate representation of the system resources and the network conditions when modelling the distribution system in the transmission optimal power flow and vice-versa. It is further used to develop an accurate pricing mechanism (distribution-based location marginal pricing), which is reflective of the moment-to-moment costs of generating and delivering electrical energy, for the distribution system. By accurately modelling the two sub-systems, the authors can improve the economic efficiency and the system reliability, as the price sensitive resources can be controlled to behave in a way that benefits the power system as a whole.
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