Link-chain design framework for a performant TSO-DSO coordination

The increasing integration of distributed renewable energy sources and electrification of energy demand require enhanced coordination between transmission and distribution system operators to optimize voltage control, congestion management, and balancing. This paper presents theLink-Chain Design Framework, a modular approach to TSO-DSO coordination that balances decentralization and performance. Four coordination options—centralized, partly decentralized, fully decentralized, and the Link-Chain Design Framework—are evaluated based on efficiency, practicability, privacy, and scalability. While decentralization adds complexity and fragments the optimization problem, it improves performance across other dimensions. The Link-Chain Design Framework uniquely supports scalable, incremental implementation, enabling gradual integration of lower voltage levels and advanced functionalities while minimizing data exchange and distributing computational effort. This framework provides a flexible, structured approach for tailoring coordination strategies to local grid conditions and implementation timelines.