학술논문

Pricing Mechanism for Flexible Loads Using Distribution Grid Hedging Rights
Document Type
Periodical
Source
IEEE Transactions on Power Systems IEEE Trans. Power Syst. Power Systems, IEEE Transactions on. 34(5):4048-4059 Sep, 2019
Subject
Power, Energy and Industry Applications
Components, Circuits, Devices and Systems
Pricing
Load modeling
Procurement
Power systems
Topology
Sensitivity
Computational modeling
Distribution locational marginal prices (DLMPs)
hedging rights (HRs)
flexible loads
revenue adequacy
Language
ISSN
0885-8950
1558-0679
Abstract
This paper proposes a new pricing mechanism for the integration of flexible loads in distribution grids. This price is calculated from an envisioned two-layer local distribution grid market, where flexible load aggregators are price takers and the distribution system operator (DSO) is the market operator. On a day-ahead basis, the DSO runs the local market and clears distribution locational marginal prices (DLMPs). Aggregators purchase energy based on these DLMPs. However, depending upon grid conditions (losses/congestion), the DLMP value increases, causing aggregators to bear high energy procurement cost. To mitigate this issue, a second layer is introduced to compute ex-ante scenario-based Hedging Rights. Through a combination of these two layers, the proposed mechanism 1) improves market competition among the involved entities, 2) maintain the congestion alleviation property of DLMPs, and 3) incorporate the intertemporal energy requirements of flexible loads. The proposed framework is tested on an IEEE benchmark distribution grid. The simulation results show that the proposed pricing mechanism allows aggregators to achieve higher cost-savings, while preserving physical power flow evaluation feature of DLMP.