TSO-DSO Coordination under Wind and Solar Power Uncertainty: A Two-Stage Stochastic Programming Approach

The integration of renewables and distributed energy resources (DERs) in the power system requires enhanced flexibility to mitigate the intermittency of renewables. Certain DERs contribute significantly to this flexibility. This paper proposes a two-stage stochastic optimization framework that considers the interaction between transmission and distribution system operators under the uncertainty of wind and solar power. In the first stage, the framework determines the unit commitment and operation levels of conventional generation units. In the second stage, the realization of renewables is accounted for, relying on flexibility from conventional power generation, centralized storage, distributed generation, decentralized storage, and demand response to manage variability. The analysis assesses the impact of varying DER capacities on system costs under different uncertainty levels. Results indicate economic benefits from coordinated power system operations with increasing DER capacities and a higher share of renewable energy sources.