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The proliferation of distributed energy resources (DERs), located at theDistribution System Operator (DSO) level, bring new opportunities as well asnew challenges to the operations within the grid, specifically, when it comesto the interaction with the Transmission System Operator (TSO). To enableinteroperability, while ensuring higher flexibility and cost-efficiency, DSOsand the TSO need to be efficiently coordinated. Difficulties behind creatingsuch TSO-DSO coordination include the combinatorial nature of the operationalplanning problem involved at the transmission level as well as the nonlinearityof AC power flow within both systems. These considerations significantlyincrease the complexity even under the deterministic setting. In this paper, adeterministic TSO-DSO operational planning coordination problem is consideredand a novel decomposition and coordination approach is developed. Within thenew method, the problem is decomposed into TSO and DSO subproblems, which areefficiently coordinated by updating Lagrangian multipliers. The nonlinearitiesat the TSO level caused by AC power flow constraints are resolved through adynamic linearization while guaranteeing feasibility through "$l_1$-proximal"terms. Numerical results based on the coordination of the 118-bus TSO systemwith up to 32 DSO 34-bus systems indicate that the method efficiently overcomesthe computational difficulties of the problem.

TSO-DSO Operational Planning Coordination through "$l_1$-Proximal" Surrogate Lagrangian Relaxation