Distribution Locational Marginal Pricing Through Quadratic Programming for Congestion Management in Distribution Networks

Abstract

Regulating the proper carbon-aware intervention policy is one of the keys to emission alleviation in the distribution network, whose basis lies in effectively attributing the emission responsibility using emission factors. This paper establishes the distribution locational marginal emission (DLME) to calculate the marginal change of emission from the marginal change of both active and reactive load demand for incentivizing carbon alleviation. It first formulates the day-head distribution network scheduling model based on the second-order cone program (SOCP). The emission propagation and responsibility are analyzed from demand to supply to system emission. Considering the complex and implicit mapping of the SOCP-based scheduling model, the implicit theorem is leveraged to exploit the optimal condition of SOCP. The corresponding SOCP-based implicit derivation approach is proposed to calculate the DLMEs effectively in a model-based way. Comprehensive numerical studies are conducted to verify the superiority of the proposed method by comparing its calculation efficacy to the conventional marginal estimation approach, assessing its effectiveness in carbon alleviation with comparison to the average emission factors, and evaluating its carbon alleviation ability of reactive DLME.

Dynamic Power Tariff for Congestion Management in Distribution Networks

“…This is because linear optimization models may have multiple solutions in responding to a given set of prices (time series), leading to unpredictable/uncontrollable demand response, which is undesirable for congestion management [4], [21]. In the DT method, quadratic terms come from the forecast price sensitivities; in the multiagent system method, the quadratic terms result from the objective to minimize the difference between the new schedule and the initial schedule.…”

“…It can be seen that the total network cost under the power tariff scheme will have quadratic terms, which is very important in the distributed congestion management method as it can avoid multiple solution problems of linear optimization models [4], [21]. In addition, the network cost increases faster under the power tariff scheme than under the normal tariff scheme, which is illustrated in Fig.…”

Long term incentives for residential customers using dynamic tariff

“…In the DT scheme, the tariff is time-varying and locational depending on the congestion cost of the load points [3], [4]. In order to be comparable with the above tariff schemes, the spot market prices are included in the tariff in addition to the locational congestion cost, leading to locational pricing.…”

“…For the DT scheme, the method presented in [4] is employed. Firstly, the DSO determines the proper DT such that there is no congestion in the distribution network through optimal power flow.…”

“…New tariff (a charge on the residential customers by the DSO) schemes are needed to handle this challenge. This paper investigates the traditional tariff schemes and several newly introduced tariff schemes, including DT (dynamic tariff) scheme proposed in [3], [4], which not only takes into account the fluctuating energy prices (see Fig. 1, bottom part) reflecting the system balance issues (deficit/redundant of wind power) but also the congestion costs due to the potential network congestions.…”