The Impact of Price-Based Demand Response on DSO-TSO Coordination System

The integration of renewable energy sources, battery energy storage systems and prosumers into both transmission and distribution systems requires power systems to be flexible. While maintaining the balance between generation and consumption follows traditional approaches, this new flexible system introduces additional complexity. Demand Response (DR), in particular, has great potential in managing demand flexibility and enabling better control of the supply-demand balance. The price-based elasticity matrix DR method, a Time-of-Use (ToU) method for day-ahead applications, is analyzed in this paper to encourage consumers to shift their demand from peak hours to off-peak hours. This methodology is analyzed in the context of day-ahead Transmission System Operator (TSO) and Distribution System Operator (DSO) coordination. The methodology includes consumer behavior modeling, renewable energy management and battery storage optimization. Furthermore, Second-Order Cone Programming Alternating Current Optimal Power Flow (SOCPAC-OPF) for the distribution system and Direct Current Optimal Power Flow (DC-OPF) for the transmission system are applied as power flow methods. The results show a reduction of 4.09 % in the total operational cost. The proposed framework successfully integrates DR mechanisms while ensuring reliable power system operation.