Abstract
Conference Title: 2018 North American Power Symposium (NAPS) Conference Start Date: 2018, Sept. 9 Conference End Date: 2018, Sept. 11 Conference Location: Fargo, ND, USA With the rise of various distributed energy resources into the distribution networks, an electricity market, similar to that of the transmission level, is foreseen to evolve in the near future, aiming to indulge and financially encourage the private resources to participate in the balance and resiliency of the system. This paper adopts the locational marginal pricing, a well-known scheme to quantify nodal pricing, and analyzes the signals sent to future-market participants to meet the demand, reduce losses, and alleviate congestion. The DLMPs derived in this paper are based on an AC OPF, convexified using semidefinite programming (SDP) relaxation, which accounts for structural characteristics of the distribution networks. Thorough case studies with a multi-period optimization are performed on the IEEE 37-bus feeder with the inclusion of distributed generators and a static-Var compensator. The unbalanced nature of distribution loads and lines induces disparate DLMPs at each phase. The analysis also contrasts passive and active distribution networks giving more emphasis to the contribution and incentives of the latter. The active networks show increased penetrations of end-users’ renewable supply are interpreted as the shadow prices that reflect on the reduction of the entire consumer payment.