access icon free Probabilistic locational marginal price computation in radial distribution system based on active power loss reduction

© The Institution of Engineering and Technology
Received 19/06/2019, Accepted 25/02/2020, Revised 21/02/2020, Published 13/03/2020

This study presents a probabilistic approach to calculate locational marginal price (LMP) at distributed generation (DG) buses in an electric power distribution system to ensure that the network operates at reduced active power losses (APLs). The proportional nucleolus theory-based iterative method is proposed as a deterministic approach to compute LMP based on APLs. Uncertainties in load and market price were captured by using a scheme of the point estimation method. To compute the contribution of the reactive and active power of the DG on the APL of the network, loss sensitivity factors have been developed. The proposed method provides an active power price in terms of LMP and reactive power price to each DG as per its contribution to loss reduction. To verify the performance of the proposed method, it was implemented on the Taiwan Power Company distribution system. The proposed method can be utilised by a distribution company to operate the network at reduced APL and improve the benefit of DG owners.

Inspec keywords: reactive power; load flow; power transmission economics; power distribution economics; pricing; iterative methods; distributed power generation; power markets

Other keywords: LMP; DG owners; market price; loss sensitivity factors; probabilistic approach; reduced active power losses; deterministic approach; active power price; reduced APL; radial distribution system; point estimation method; Taiwan Power Company distribution system; electric power distribution system; proportional nucleolus theory-based; probabilistic locational marginal price computation; distributed generation buses; size 2.0 m; active power loss reduction

Subjects: Distributed power generation; Other topics in statistics; Distribution networks; Power system management, operation and economics

References

    1. 1)
      • 17. Rui, B., Li, F.: ‘Probabilistic LMP forecasting considering load uncertainty’, IEEE Trans. Power Syst., 2009, 24, (3), pp. 1279–1289.
    2. 2)
      • 1. Majid Miri Larimi, S., Haghifam, M.R., Zangiabadi, M., et al: ‘Value based pricing of distribution generations active power in distribution networks’, IET. Gener. Transm. Distrib., 2015, 9, (15), pp. 2117–2125.
    3. 3)
      • 3. Mahmood, M., Shivam, O., Kumar, P., et al: ‘Real time study on technical losses in distribution system’, Int. J. Adv. Res. Electr. Electron. Instrum. Eng., 2014, 3, pp. 131–137.
    4. 4)
      • 18. Sahriatzadeh, F., Nirbhavane, P., Srivastava, A.K.: ‘Locational marginal price for distribution system considering demand response’. 2012 North American Power Symp. (NAPS), Champaign, IL, USA, 2012, pp. 1–5.
    5. 5)
      • 7. Larimi, S.M., Haghifam, M., Ghadiri, A.: ‘Determining the guaranteed energy purchase price for distributed generation in electricity distribution networks’, Util. Policy, 2016, 41, pp. 118–127.
    6. 6)
      • 19. Huang, S., Wu, Q., Oren, S.S., et al: ‘Distribution locational marginal pricing through quadratic programming for congestion management in distribution networks’, IEEE Trans. Power Syst., 2014, 30, (4), pp. 2170–2178.
    7. 7)
      • 16. Bo, R., Li, F.: ‘Impact of load forecast uncertainty on LMP’. Power Systems Conf. and Exposition, 2009 (PSCE'09), Seattle, WA, USA, 2009, pp. 1–6.
    8. 8)
      • 27. Morales, J.M., Perez-Ruiz, J.: ‘Point estimate schemes to solve the probabilistic power flow’, IEEE Trans. Power Syst., 2007, 22, (4), pp. 1594–1601.
    9. 9)
      • 29. Miller, S.M., Whyatt, J.K., McHugh, E.L., et al: ‘Applications of the point estimation method for stochastic rock slope engineering’. Gulf Rocks, 2004, The 6th North America Rock Mechanics Symp. (NARMS), Houston, TX, USA, 2004.
    10. 10)
      • 9. Sotkiewicz, P., Vignolo, J.M.: ‘Towards a cost causation-based tariff for distribution networks with DG’, IEEE Trans. Power Syst., 2007, 22, (3), pp. 1051–1060.
    11. 11)
      • 25. Veeramsetty, V., Chintham, V., Vinod Kumar, D.M.: ‘LMP computation at DG buses in radial distribution system’, Int. J. Energy Sector Manage., 2018, 12, (3), pp. 364–385.
    12. 12)
      • 22. Papavasiliou, A.: ‘Analysis of distribution locational marginal prices’, IEEE Trans. Smart Grid, 2017, 9, (5), pp. 4872–4882.
    13. 13)
      • 11. Shaloudegi, K., Madinehi, N., Hosseinian, S., et al: ‘A novel policy for locational marginal price calculation in distribution systems based on loss reduction allocation using game theory’, IEEE Trans. Power Syst., 2012, 27, (2), pp. 811–820.
    14. 14)
      • 23. Nematshahi, S., Rajabi Mashhadi, H.: ‘Application of distribution locational marginal price in optimal simultaneous distributed generation placement and sizing in electricity distribution networks’, Int. Trans. Electr. Energy Syst., 2019, 29, (5), p. e2837.
    15. 15)
      • 6. Sathyanarayana, B.R., Heydt, G.T.: ‘Sensitivity-based pricing and optimal storage utilization in distribution systems’, IEEE Trans. Power Deliv., 2013, 28, (2), pp. 1073–1082.
    16. 16)
      • 31. Available at http://www.ieso.ca, accessed: 2015-12-18.
    17. 17)
      • 13. Veeramsetty, V., Chintham, V., Vinod Kumar, D.: ‘Proportional nucleolus game theory-based locational marginal price computation for loss and emission reduction in a radial distribution system’, Int. Trans. Electr. Energy Syst., 2018, 28, (8), p. e2573.
    18. 18)
      • 14. Li, F., Bo, R.: ‘DCOPF-based LMP simulation: algorithm, comparison with ACOPF, and sensitivity’, IEEE Trans. Power Syst., 2007, 22, (4), pp. 1475–1485.
    19. 19)
      • 15. Li, F.: ‘Continuous locational marginal pricing (CLMP)’, IEEE Trans. Power Syst., 2007, 22, (4), pp. 1638–1646.
    20. 20)
      • 32. Siahkali, H., Vakilian, M.: ‘Stochastic unit commitment of wind farms integrated in power system’, Electr. Power Syst. Res., 2010, 80, (9), pp. 1006–1017.
    21. 21)
      • 24. Available at https://www.ferc.gov/industries/electric/indus-act/joint-boards/pjm-rpt.pdf, accessed: 2018-09-20.
    22. 22)
      • 20. Steffan, N.M., Heydt, G.T.: ‘Computation of loss factors for locational marginal prices in distribution systems’. 2015 IEEE Power & Energy Society General Meeting, Denver, CO, USA, 2015, pp. 1–5.
    23. 23)
      • 2. Liu, H., Tang, C., Han, J., et al: ‘Probabilistic load flow analysis of active distribution network adopting improved sequence operation methodology’, IET. Gener. Transm. Distrib., 2017, 11, p. 2147.
    24. 24)
      • 5. Sadeghi Mobarakeh, A., Rajabi-Ghahnavieh, A., Haghighat, H.: ‘A bi-level approach for optimal contract pricing of independent dispatchable DG units in distribution networks’, Int. Trans. Electr. Energy Syst., 2016, 26, (8), pp. 1685–1704.
    25. 25)
      • 30. Su, C.-T., Lee, C.-S.: ‘Network reconfiguration of distribution systems using improved mixed-integer hybrid differential evolution’, IEEE Trans. Power Deliv., 2003, 18, (3), pp. 1022–1027.
    26. 26)
      • 26. Satyaramesh, P., Radhakrishna, C.: ‘Use of cooperative game theory concepts for loss allocation in bilateral electricity markets’, Int. J. Power Energy Syst., 2009, 29, (4), p. 272.
    27. 27)
      • 28. Mohammadi, M.: ‘Probabilistic harmonic load flow using fast point estimate method’, IET. Gener. Transm. Distrib., 2015, 9, (13), pp. 1790–1799.
    28. 28)
      • 12. Veeramsetty, V., Venkaiah, C., Kumar, D.V.: ‘Hybrid genetic dragonfly algorithm based optimal power flow for computing LMP at DG buses for reliability improvement’, Energy Syst., 2018, 9, (3), pp. 709–757.
    29. 29)
      • 4. Singh, R.K., Goswami, S.: ‘Optimum allocation of distributed generations based on nodal pricing for profit, loss reduction, and voltage improvement including voltage rise issue’, Int. J. Electr. Power Energy Syst., 2010, 32, (6), pp. 637–644.
    30. 30)
      • 21. Bai, L., Wang, J., Wang, C., et al: ‘Distribution locational marginal pricing (DLMP) for congestion management and voltage support’, IEEE Trans. Power Syst., 2017, 33, (4), pp. 4061–4073.
    31. 31)
      • 8. Sotkiewicz, P.M., Vignolo, J.M.: ‘Nodal pricing for distribution networks: efficient pricing for efficiency enhancing DG’, IEEE Trans. Power Syst., 2006, 21, (2), p. 1013.
    32. 32)
      • 10. Azad-Farsani, E.: ‘Loss minimization in distribution systems based on LMP calculation using honey bee mating optimization and point estimate method’, Energy, 2017, 140, pp. 1–9.
http://iet.metastore.ingenta.com/content/journals/10.1049/iet-gtd.2019.0952
Loading

Related content

content/journals/10.1049/iet-gtd.2019.0952
pub_keyword,iet_inspecKeyword,pub_concept
6
6
Loading