TSO-DSOs Stable Cost Allocation for the Joint Procurement of Flexibility: A Cooperative Game Approach
Résumé
In this paper, a transmission-distribution systems flexibility market is introduced, in which system operators (SOs)jointly procure flexibility from different systems to meet their needs (balancing and congestion management) using a commonmarket. This common market is, then, formulated as a cooperative game aiming at identifying a stable and efficient split ofcosts of the jointly procured flexibility among the participating SOs to incentivize their cooperation. The non-emptiness of thecore of this game is then mathematically proven, implying the stability of the game and the naturally-arising incentive forcooperation among the SOs. Several cost allocation mechanisms are then introduced, while characterizing their mathematicalproperties. Numerical results focusing on an interconnected system (composed of the IEEE 14-bus transmission systemand the Matpower 18-bus, 69-bus, and 141-bus distributions systems) showcase the cooperation-induced reduction in systemwideflexibility procurement costs, and identifies the varying costs borne by different SOs under various cost allocations methods.
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