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Distribution locational pricing mechanisms for flexible interconnected distribution system with variable renewable energy generation

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  • Li, Junkai
  • Ge, Shaoyun
  • Liu, Hong
  • Zhang, Shida
  • Wang, Chengshan
  • Wang, Pengxiang

Abstract

Nowadays, distribution locational pricing mechanism has been widely used in the radial distribution network to guide the energy consumption and promote the renewables utilization. Aiming to explore the reasonable pricing policy which is applicable to the merging flexible interconnected distribution system (FIDS), this paper develops two different distribution locational pricing mechanisms for distribution lines interconnected by soft open points (SOPs). First, based on the Wasserstein ambiguity sets for uncertainties from the main grid and distribution network, a carbon-oriented distributionally robust economic dispatch model is constructed for FIDS considering different price and carbon signals from the main grid. Then, by leveraging the optimal scheme from economic scheduling model, distribution locational marginal prices (DLMPs) and equivalent DLMPs (EDLMPs) are presented to measure the marginal cost and actual cost for energy consumption in the FIDS respectively. The calculation and decomposition methods of these price signals are also developed. In case studies, a practical 63-node FIDS is chosen to verify the effectiveness of the proposed methods. Numerical results illustrate the characteristics of DLMPs and EDLMPs in FIDS under multiple uncertainties. Comparing to DLMPs, EDLMPs are more appropriate to FIDS because this pricing mechanism can reflect the lower generation cost of renewables for each consumer.

Suggested Citation

  • Li, Junkai & Ge, Shaoyun & Liu, Hong & Zhang, Shida & Wang, Chengshan & Wang, Pengxiang, 2023. "Distribution locational pricing mechanisms for flexible interconnected distribution system with variable renewable energy generation," Applied Energy, Elsevier, vol. 335(C).
    • Handle: RePEc:eee:appene:v:335:y:2023:i:c:s0306261922017330
    DOI: 10.1016/j.apenergy.2022.120476
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    References listed on IDEAS

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