Power-based distribution locational marginal pricing under high-penetration of distributed energy resources

• Published in: International journal of electrical power & energy systems Vol. 123; p. 106303
• Main Authors: Rezvanfar, Razi, Tarafdar Hagh, Mehrdad, Zare, Kazem
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-12-2020
• Subjects: Distributed energy resources; Distribution network congestion; Overvoltage; Power based distribution locational marginal pricing; Distribution network congestion; Power based distribution locational marginal pricing; Distributed energy resources; Overvoltage
• ISSN: 0142-0615; 1879-3517
• DOI: 10.1016/j.ijepes.2020.106303

•For the first time, power-based distribution locational marginal pricing (PDLMP) is proposed.•The market-clearing optimization process is handled in a distributed manner.•The proposed PDLMP motivates DERs to participate in active and reactive power control of distribution network.•Over-voltage and congestion in distribution network are alleviated and maximum power of PVs is harvested.
This study, as the leading one, proposes power-based distribution locational marginal pricing (PDLMP) to determine the active and reactive powers tariffs in distribution systems with high penetration of distributed energy resources (DERs). The main merit of the proposed approach alludes to its power-based characteristics within which the price signals are in the form of linear expressions of active and reactive powers and the DERs’ optimization problem demonstrates a second-order characteristic. Accordingly, the problem of multiple solutions is not seen and the scheduling pattern of DERs’ powers would be exactly the same as the anticipated scheduling solution of distribution system operator (DSO). The second advantage of the proposed approach is its repetitive feature within which the optimization process in DERs’ side is a part of market clearing process. In this way, beside preserving the privacy of DERs, by increasing the number of DERs, the computational burden of the DSO would not drastically increase. In the proposed method, the non-linear equations of distribution network and DERs are linearized based on precise approximations and tested on 38-bus distribution test system. The obtained results certify the efficiency of the established approach in alleviating the possible over-voltages, reducing the congestion, and increasing the renewable energy share in distribution system scheduling, all together ending to decrease the distribution system operation cost.