Smoothed Two-Stage Decomposition Algorithm for Solving Large-Scale Transmission and Distribution AC-OPF Problems

Juan Ospina, Manuel Garcia, Xinyi Luo, Andreas Wachter, David M. Fobes, Russell Bent

The integration of distributed energy resources (DERs) into the power grid has introduced new challenges to AC optimal power flow (AC-OPF) problems. Traditional OPF optimize consider transmission systems, treating distribution networks as static loads. However, the growing presence of DERs makes accurate distribution system modeling crucial for grid operations. Consequently, efficiently solving the resultant large-scale, nonconvex transmission and distribution (T&D) AC-OPF problem remains a significant challenge. This paper proposes a Smoothed Two-Stage Decomposition Optimizer (StsDOpt) to address these complexities by decomposing the T&D AC-OPF problem into a master-subproblem(s) structure, enabling parallel solving. Unlike traditional methods, StsDOpt does not rely on approximations or relaxations. It uses a smoothing technique to render the subproblems responses differentiable with respect to the master problem, leveraging the barrier problem properties inherent in primal-dual interior point methods. This approach is crucial for accurately modeling and solving distribution systems, which are multiphase, unbalanced, and nonlinear, distinguishing StsDOpt apart from other methods. Integrated into the PowerModelsITD framework, StsDOpt has been validated through numerical experiments, demonstrating reduced wall-clock solve time and increased scalability. Results highlight its efficacy as a robust, scalable solution for large-scale T&D AC-OPF problems, facilitating the reliable integration of DERs into complex T&D systems.