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Environmental concerns are leading to a fast transition in electric power systems towards replacing fossil fuel and nuclear generation with renewable generation. This transition has two significant implications for electric power systems:1-The capacity of conventional dispatchable electric power plants, which are the main providers of power flexibility , is sharply falling. It is notable that the security of electric power systems can be preserved if and only if there is an adequate amount of power flexibility to guarantee the frequency stability, voltage regulation, power quality, and congestion management.2-The share of renewable energy sources (RESs) in the electric power generation portfolio is steeply soaring. It raises a significant stress on electric power systems due to the fact that the generated electricity from RESs is intrinsically intermittent and accompanied with uncertainties.The simultaneous realization of these two issues puts electric power systems in a turning point. This thesis devotes a deep attention to the power flexibility provision issue with the purpose of empowering transmission system operators (TSOs) and distribution system operators (DSOs) to steer electric power systems securely in this emerging architecture. To this end, it sets out to unlock the potential power flexibility of distributed energy resources (DERs) located in distribution networks. The first part of the thesis deals with the problem from TSO's perspective. It develops two decision making tools for TSOs to help them optimally quantify their required power flexibility from flexibility providers (including flexible distribution networks) in a decentralized energy and flexibility market structure. The first tool concentrates solely on active power flexibility and accordingly offers a framework to model aggregated active power flexibility of distribution networks from TSO's point of view. In contrast, the second tool introduces a holistic TSO-DSO coordination framework to enable TSO and DSO to exchange both active/reactive power flexibility. Both developed tools employ mathematical techniques to cast the TSO's decision making process as a two-stage linear stochastic optimization problem while accounting for risk associated to the uncertainties. The frameworks lay a ground for TSO and DSOs to exchange power flexibility without having to reveal their confidential grids data.The second part of the thesis deals with the problem from DSO's perspective. It first concentrates on an active distribution network (ADN) and constructs a set of linear scenario-based robust optimization problems to characterize the maximum active/reactive powers flexibility that the ADN can provide upon request at its point of common coupling (PCC) to the upper-layer grid. Second, it constructs a linear grid&uncertainties-cognizant ADN management method to determine the amount of active/reactive powers flexibility that should be provided by each DER during the real-time operation in such a way that the ADN can provide, with minimum deviation, the active/reactive powers flexibility requested by the upper-layer grid at the PCC.In addition to dealing with the problem from both TSO's and DSO's perspectives, a privileged feature of the thesis is that it offers linear tractable algorithms to deal with all above-mentioned tasks while considering grid's constraints and uncertainties stemming from the forecast errors of demand and renewable generation.