IDSO-Managed Bid-Based Transactive Distribution Systems Design for DER Participation in Wholesale Markets While Preserving T-D Interactions
Abstract
Participation of Distributed Energy Resources (DERs) in bid-based Transactive Energy Systems (TES) at the distribution systems facilitates strongly coupled, bidirectional interactions between Transmission-Distribution (T-D) systems. Capturing these interactions is critical for ensuring seamless integration within an Integrated Transmission and Distribution (ITD) framework. This study proposes a methodology to preserve such tight T-D linkages by developing an Independent Distribution System Operator (IDSO) managed bid-based TES design for unbalanced distribution systems. The proposed design operates within the ITD paradigm and permits DER participation in the Wholesale Power Market (WPM) through IDSO while preserving tight T-D linkages. To this end, this research offers the following key contributions: a novel bid/offer prequalification-cum-aggregation method to ensure a grid-safe and value-based aggregation of DERs' bids and offers for WPM participation through IDSO; and a retail pricing mechanism that reflects the true value of procuring or offering additional units of power within the distribution system. Case studies are conducted on a modified IEEE 123-bus radial feeder populated with a high DER concentration to validate the proposed frameworks' effectiveness in coordinating the DERs efficiently and reliably.
Keywords
Cite
@article{arxiv.2508.08187,
title = {IDSO-Managed Bid-Based Transactive Distribution Systems Design for DER Participation in Wholesale Markets While Preserving T-D Interactions},
author = {Swastik Sharma and Swathi Battula and Sri Niwas Singh},
journal= {arXiv preprint arXiv:2508.08187},
year = {2025}
}
Comments
17 Pages, 13 Figures. Removed a few typos, and added more references in literature review