Transmission and distribution coordination for distributed energy resources integration to electricity markets

A method of operating an electrical power grid, comprising:

• collecting bids describing one or more electricity characteristics, by an operator, in an energy market from an electricity transmitter and one or more distributors, wherein the one or more distributors include interconnected distributed energy resources, each distributed energy resource intermittently providing electricity to its interconnected distributor;
• calculating, by the operator, a distribution-to-distribution sub-matrix of an energy market clearing model for each distributor and releasing the calculated distribution-to-distribution sub-matrix to each distributor;
• preparing, by each distributor, a multi-port power-exchange model from the calculated distribution-to-distribution sub-matrix and submitting the prepared multi-port power-exchange model to the operator;
• and
• clearing, in the energy market clearing model, by the operator, the energy market and providing one or more electricity characteristics to the one or more distributors and to the distributed energy resources;
• wherein the energy market clearing model additionally includes one or more elements of a distribution-to-transmission sub-matrix to account for impacts of the distributors on one or more transmission line constraints.