Recent issues such as priority access of renewable resources recommended by European energy directives and increase the electricity trading among countries lead to new requirements on the operation and expansion of transmission grids. Since AC grid expansions are limited by legislative issues and long distance transmission capacity, there is a considerable attention drawn to application of HVDC transmission grids on top of, or in complement to, existing AC power systems. The secure operation of HVDC grids requires a hierarchical control system. In HVDC grids, the primary control action to deal with power or DC voltage deviations is communication-free and local. In addition to primary control, the higher supervisory control actions are needed to guarantee the optimal operation of HVDC grids. However, the implementation of supervisory control functions is linked to the arrangement of system operators; i.e. an individual HVDC operator (central structure) or sharing tasks among AC system operators (distributed structure).

This thesis presents distributed control of an HVDC grid. To this end, three possible supervisory functions are investigated; coordination of power injection set-points, DC slack bus selection and network topology identification. In this thesis, all three functions are first studied for the central structure. For the distributed solution, two algorithms based on Alternating Direction Method of Multipliers (ADMM) and Auxiliary Problem Principle (APP) are adopted to solve the coordination of power injection. For distributed selection of DC slack bus, the choice of parameters for quantitative ranking of converters is important. These parameters should be calculated based on local measurements if distributed decision is desired. To this end, the short circuit capacity of connected AC grid and power margin of converters are considered. To estimate the short circuit capacity as one of the required selection parameters, the result shows that the recursive least square algorithm can be very efficiently used. Besides, it is possible to intelligently use a naturally occurring droop response in HVDC grids as a local measurement for this estimation algorithm. Regarding the network topology, a two-stage distributed algorithm is introduced to use the abstract information about the neighbouring substation topology to determine the grid connectivity.