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Economic dispatch and frequency regulation are typically viewed asfundamentally different problems in power systems and, hence, are typicallystudied separately. In this paper, we frame and study a joint problem that co-optimizes both slow timescale economic dispatch resources and fast timescalefrequency regulation resources. We show how the joint problem can be decomposedwithout loss of optimality into slow and fast timescale sub-problems that haveappealing interpretations as the economic dispatch and frequency regulationproblems respectively. We solve the fast timescale sub-problem using adistributed frequency control algorithm that preserves the stability of thenetwork during transients. We solve the slow timescale sub-problem using anefficient market mechanism that coordinates with the fast timescalesub-problem. We investigate the performance of the decomposition on the IEEE24-bus reliability test system.

Distributed optimization decomposition for joint economic dispatch and frequency regulation