Designing a joint market for procurement of transmission and distribution system services from demand flexibility

摘要

Abstract Demand flexibility and other distributed energy resources (DER) have potential to provide ancillary services (AS) to the power system on both transmission and distribution level. AS markets for transmission system operation have existed for many years. The development of Smart Grid has led to an idea of introducing similar markets for distribution system services. Since DER represent a common pool of resources located in the distribution grid which can be used for either transmission or distribution system AS, a more holistic approach to the power system operation with a greater coordination between the transmission and the distribution level is being encouraged by energy regulators today. In this paper, we propose a market framework for joint procurement of transmission and distribution system services from demand flexibility. To better illustrate the idea, we use the Danish market for tertiary control reserves as an example of a market that can be linked to a potential distribution system market for congestion management services. We discuss the details of the market design and formulate the joint market clearing procedure where demand flexibility offers are allocated to either transmission system service or distribution system service. A numerical example illustrates the economic benefit of the joint market clearing, and we further discuss some other advantages of the proposed design.