arXiv · 2508.05378
Voltage Support Procurement in Transmission Grids: Incentive Design via Online Bilevel Games
Abstract
The integration of distributed energy resources into transmission grid operations presents a complex challenge, particularly in the context of reactive power procurement for voltage support. This paper addresses this challenge by formulating the voltage regulation problem as a Stackelberg game, where the Transmission System Operator (TSO) designs incentives to guide the reactive power responses of Distribution System Operators (DSOs). We utilize a gradient-based iterative algorithm that updates the incentives to ensure that DSOs adjust their reactive power injections to maintain voltage stability. We incorporate principles from online feedback optimization to enable real-time implementation, utilizing voltage measurements in both TSO's and DSOs' policies. This approach not only enhances the robustness against model uncertainties and changing operating conditions but also facilitates the co-design of incentives and automation. Numerical experiments on a 5-bus transmission grid demonstrate the effectiveness of our approach in achieving voltage regulation while accommodating the strategic interactions of self-interested DSOs.
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Zhisen Jiang, Saverio Bolognani, Giuseppe Belgioioso. 2025-08-07. Voltage Support Procurement in Transmission Grids: Incentive Design via Online Bilevel Games. https://arxiv.org/abs/2508.05378
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