TSO-DSO Coordinated Distributed Optimizations in Grid Operations Considering System Operator Sovereignty

Congestion management cost has risen significantly over the past decade. While current operational planning primarily focuses on adjusting active power flows, this thesis reviews existing and develops new methods to optimize voltage and reactive power management. Implementing such a method as an additional process- operating in parallel with existing procedures-could provide extra safety margins, which in turn could be used to reduce congestion management costs. This thesis focuses on distributed optimization methods as solutions candidates. These methods are based on mathematical optimization and coordinate the independent operation of system operators (SOs) while maintaining data integrity. The developed method provides a fair-minded balancing of the interests of the SOs and demonstrates a convincing performance in simulations. Therefore, the author outlines recommended next steps for integrating the proposed method as a supplementary process in future operational planning.