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This paper presents a two-stage hierarchical voltage-load sensitivity matrix (VLSM)-based demand response (DR) algorithm for regulating the voltage at distribution feeders while fulfilling the transmission system DR requests. This allows distributed energy resources to be aggregated to provide transmission-level services without causing operational issues in the distribution grids. At the beginning of each operation interval, a transmission system controller will issue DR commands to distribution system controllers. In the first stage, the distribution system controller uses a VLSM-based dispatch algorithm to dispatch the available DR resources on the distribution feeder with an objective to minimize the total voltage deviations at the lowest cost. Then, power flow studies are conducted assuming that the DR commands have been executed. If voltage violations are detected, a second-stage VLSM-based DR dispatch is performed to remove those violations. After that, the upper and lower DR limits calculated for the next operation interval are sent back to the transmission system controller so the transmission optimization algorithm can use them as operational constraints to make subsequent decisions. The DR resources include smart photovoltaic (PV) inverters that can curtail real power and provide reactive power support, controllable loads and capacitor banks. The IEEE 123-bus test system with 5-min PV and load data is used to evaluate the performance of the algorithm. Simulation results show that the proposed algorithm can fulfill the transmission-level DR requests while maintaining the voltage in the distribution system within limits.

A Hierarchical VLSM-Based Demand Response Strategy for Coordinative Voltage Control Between Transmission and Distribution Systems