Hierarchical Interactive Risk Hedging of Multi-TSO Power Systems

For a large interconnected power system with multiple transmission system operators (TSOs), online inter-TSO synergistic interactions are increasingly being required to hedge against system-wide operating risk. To address this issue, a novel hierarchical interactive risk hedging (HIRH) method is proposed. Under the established framework, the upper level coordinator can interact with the lower level local TSOs through target and response variables. Decentralized and interdependent risk hedging models are formulated, including a system-wide coordination optimization model for the coordinator and a set of preventive-corrective combined risk-Aware optimal power flow models for local TSOs. To tackle the computational complexity of the multiple problems, a two-level decomposition-coordination algorithm based on analytical target cascading and Benders decomposition is developed. A case study of a modified three-Area RTS-96 system demonstrates the effectiveness of the proposed HIRH.