Abstract-Emerging smart-grid-enabling technologies will allow an unprecedented degree of observability and control at all levels in a power system. Combined with flexible demand and storage, they could allow procuring energy at minimum cost and environmental impact. That however presupposes real-time coordination of demand of individual households and industries down at the distribution level, with generation at the transmission level. This is closely related with the balancing market economic dispatch (ED) problem, which currently does not take into account distribution network constraints and flexible demand characteristics. Still, assuming a suitably modified form of that problem was available, due to both computational and communications requirements, its centralized solution in its full detail would not be tractable. While there is currently a wealth of literature dealing with distributed optimization applications in power systems, it typically focuses on smaller parts of the overall energy management problem (e.g. transmission area synchronization or electric vehicles management) often without considering its full scale or establishing any association with energy market mechanisms. The target of this paper is twofold: identify a flexible demand and distribution network inclusive formulation for ED; and propose a solution method.

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| Multienergy systems (MES) can optimally deploy their internal operational flexibility to use combinations of different energy vectors to meet the needs of end-users and potentially support the wider system. Key relevant applications of MES are multienergy districts (MEDs) with, for example, integrated electricity and gas distribution and district heating networks. Simulation and optimization of MEDs is a grand challenge requiring sophisticated techno-economic tools that are capable of modeling buildings and distributed energy Manuscript

. (2015) 'Investigation of maximum possible OPF problem decomposition degree for decentralized energy markets.', IEEE transactions on power systems., 30 (5). pp. 2566-2578.Further information on publisher's website: Publisher's copyright statement: c 2014 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works. Additional information:Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. ). A thorough investigation of its convergence properties is conducted, and through its coordination with an additional proximal based decomposition method we improve its scalability characteristics.

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