Monetarization of the Feasible Operation Region based on a Cost-Optimal Flexibility Disaggregation

Abstract: Hierarchical multi-(voltage-)level grid control strategies are an appropriate design concept for the coordination of future TSO/DSO- and DSO/DSO-interactions. Hierarchical approaches are based on the aggregation of decentralized ancillary service potentials, represented by converter-coupled, communicable active and reactive power flexibility providing units (FPU) (e.g. wind turbines) at vertical system interfaces. The resulting PQ-polygon made available by the DSO for a potential request of ancillary service flexibilities by the TSO is called feasible operation region (FOR). A monetarization of the FOR is necessary for the implementation as operational degree of freedom within higher-level grid control. This paper presents an approach for the monetarization of the FOR in the context of a hierarchical multi-level flexibility market by a cost structure using metadata from population based optimization methods. Multiple FPU flexibility polygons at a single bus are aggregated for a reduction of the search space dimensions. The main contribution of the proposed method is the cost-optimal disaggregation of a flexibility demand to the single FPUs within the aggregated FPU by a mixed integer linear program (MILP). Therefore, a local flexibility market considering bids for the active and reactive power flexibilities by the FPUs stakeholders is assumed. The approach is applied within a case-study of the Cigr\'e medium voltage system.