Using Distribution-Level Locational Marginal Pricing to Value Distributed Generation: Impacts on Revenues Captured by Generation Agents
2017 IEEE PES Innovative Smart Grid Technologies Conference – Latin America (ISGT Latin America), 2017
This paper analyzes the impacts of using distribution-level locational marginal prices (DLMPs) as a basis for valuing generation connected to low-voltage distribution feeder systems. The consistency between economic signals embedded in DLMPs and the impacts of distributed generation (DG) on the operation of low voltage grids is analyzed. We investigate how the revenues captured by DG agents connecting to a 13.8 kV feeder system are affected by using DLMPs to value their energy production, with aid of a case study encompassing several operating scenarios. We introduce a linear programming formulation of the optimal dispatch problem fit for analyses of several scenarios of operation of low-voltage distribution grids with variable generation.
