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Distribution Locational Marginal Pricing under Generation and Network Scarcity Conditions
Zejun Ruan1, Anthony Papavasiliou1, Mehdi Madani2
1Electrical and Computer Engineering, National Technical University of Athens, 9 Iroon Polytechniou St, Athens, 15772 Greece.
Summary
Integrating reserve scarcity pricing into distribution locational marginal prices (DLMPs) improves investment signals. Accurate pricing requires accounting for network congestion and reserve deliverability for optimal distributed energy systems.
Area of Science:
- Electrical Engineering
- Energy Systems
- Market Design
Background:
- Distributed energy resources (DERs) integration into power grids is rapidly advancing.
- Existing market models for DERs often overlook network constraints and reserve scarcity.
- Accurate pricing mechanisms are crucial for efficient DER investment and grid operation.
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