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Distribution locational marginal price-based transactive day-ahead market with variable renewable generation

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  • Faqiry, M. Nazif
  • Edmonds, Lawryn
  • Wu, Hongyu
  • Pahwa, Anil

Abstract

The large-scale penetration of variable renewable energy and their generation uncertainties poses a major challenge for the distribution system operator to efficiently determine the day-ahead real and reactive power distribution locational marginal prices and their underlying components. In this paper, we propose a distribution locational marginal price-based transactive day-ahead market model, that in addition to energy and losses, determines prices for creating congestions and voltage violations under peak-load and large-scale stochastic variable renewable energy penetration conditions. To account for the variable renewable energy uncertainties and the effect of their large-scale penetration on the distribution locational marginal price components and distributed energy resources’ schedules, we use a novel data-driven probability efficient point method that computes the optimal total variable renewable energy generation at different confidence (risk) levels to incorporate in the proposed transactive day-ahead market model. We perform a wide range of simulation studies on a modified Pacific Gas & Electric 69-node system to validate the proposed methods and demonstrate the effect of peak load conditions, large-scale variable renewable energy penetration, and integration of battery energy storage systems on the resulting positive or negative real and reactive power distribution locational marginal prices and their components.

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  • Faqiry, M. Nazif & Edmonds, Lawryn & Wu, Hongyu & Pahwa, Anil, 2020. "Distribution locational marginal price-based transactive day-ahead market with variable renewable generation," Applied Energy, Elsevier, vol. 259(C).
    • Handle: RePEc:eee:appene:v:259:y:2020:i:c:s0306261919317908
    DOI: 10.1016/j.apenergy.2019.114103
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    References listed on IDEAS

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    Cited by:

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    2. Xu, Fangyuan & Zhu, Weidong & Wang, Yi Fei & Lai, Chun Sing & Yuan, Haoliang & Zhao, Yujia & Guo, Siming & Fu, Zhengxin, 2022. "A new deregulated demand response scheme for load over-shifting city in regulated power market," Applied Energy, Elsevier, vol. 311(C).
    3. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    4. Akter, M.N. & Mahmud, M.A. & Haque, M.E. & Oo, Amanullah M.T., 2020. "An optimal distributed energy management scheme for solving transactive energy sharing problems in residential microgrids," Applied Energy, Elsevier, vol. 270(C).
    5. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    6. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    7. Zhang, Kaizhe & Xu, Yinliang & Sun, Hongbin, 2024. "Bilevel optimal coordination of active distribution network and charging stations considering EV drivers' willingness," Applied Energy, Elsevier, vol. 360(C).
    8. Alam, Mollah Rezaul & Alam, M.J.E. & Somani, Abhishek & Melton, Ronald B. & Tushar, Wayes & Bai, Feifei & Yan, Ruifeng & Saha, Tapan K., 2021. "Evaluating the feasibility of transactive approach for voltage management using inverters of a PV plant," Applied Energy, Elsevier, vol. 291(C).
    9. Edmonds, Lawryn & Derby, Melanie & Hill, Mary & Wu, Hongyu, 2021. "Coordinated operation of water and electricity distribution networks with variable renewable energy and distribution locational marginal pricing," Renewable Energy, Elsevier, vol. 177(C), pages 1438-1450.
    10. Alizadeh, Ali & Kamwa, Innocent & Moeini, Ali & Mohseni-Bonab, Seyed Masoud, 2023. "Energy management in microgrids using transactive energy control concept under high penetration of Renewables; A survey and case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).

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