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We propose using a hierarchical retail market structure to alert and dispatchresources to mitigate cyber-physical attacks on a distribution grid. Wesimulate attacks where a number of generation nodes in a distribution grid areattacked. We show that the market is able to successfully meet the shortfallbetween demand and supply by utilizing the flexibility of remaining resourceswhile minimizing any extra power that needs to be imported from the maintransmission grid. This includes utilizing upward flexibility or reserves ofremaining online generators and some curtailment or shifting of flexible loads,which results in higher costs. Using price signals and market-basedcoordination, the grid operator can achieve its objectives without directcontrol over distributed energy resources and is able to accurately compensateprosumers for the grid support they provide.

Enhancing power grid resilience to cyber-physical attacks using distributed retail electricity markets