Pricing mechanism for flexible loads using distribution grid Hedging Rights
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 ope...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2020
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/141517 |
| _version_ | 1826128949559689216 |
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| author | Hanif, Sarmad Creutzburg, Philipp Gooi, Hoay Beng Hamacher, Thomas |
| author2 | School of Electrical and Electronic Engineering |
| author_facet | School of Electrical and Electronic Engineering Hanif, Sarmad Creutzburg, Philipp Gooi, Hoay Beng Hamacher, Thomas |
| author_sort | Hanif, Sarmad |
| collection | NTU |
| description | 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. |
| first_indexed | 2024-10-01T07:32:53Z |
| format | Journal Article |
| id | ntu-10356/141517 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:32:53Z |
| publishDate | 2020 |
| record_format | dspace |
| spelling | ntu-10356/1415172020-06-09T02:21:37Z Pricing mechanism for flexible loads using distribution grid Hedging Rights Hanif, Sarmad Creutzburg, Philipp Gooi, Hoay Beng Hamacher, Thomas School of Electrical and Electronic Engineering Electrification Suite and Test Lab TUMCREATE Engineering::Electrical and electronic engineering Distribution Locational Marginal Prices (DLMPs) Hedging Rights (HRs) 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. NRF (Natl Research Foundation, S’pore) 2020-06-09T02:21:37Z 2020-06-09T02:21:37Z 2018 Journal Article Hanif, S., Creutzburg, P., Gooi, H. B., & Hamacher, T. (2019). Pricing mechanism for flexible loads using distribution grid Hedging Rights. IEEE Transactions on Power Systems, 34(5), 4048-4059. doi:10.1109/TPWRS.2018.2862149 0885-8950 https://hdl.handle.net/10356/141517 10.1109/TPWRS.2018.2862149 2-s2.0-85050993043 5 34 4048 4059 en IEEE Transactions on Power Systems © 2018 IEEE. All rights reserved. |
| spellingShingle | Engineering::Electrical and electronic engineering Distribution Locational Marginal Prices (DLMPs) Hedging Rights (HRs) Hanif, Sarmad Creutzburg, Philipp Gooi, Hoay Beng Hamacher, Thomas Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title | Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title_full | Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title_fullStr | Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title_full_unstemmed | Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title_short | Pricing mechanism for flexible loads using distribution grid Hedging Rights |
| title_sort | pricing mechanism for flexible loads using distribution grid hedging rights |
| topic | Engineering::Electrical and electronic engineering Distribution Locational Marginal Prices (DLMPs) Hedging Rights (HRs) |
| url | https://hdl.handle.net/10356/141517 |
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