Grid-aware pricing scheme in future distribution systems based on real-time power tracing and bi-level optimization

Abstract

In this paper, a market-clearing framework based on power tracing and loss allocation has been introduced. Growth in the participation of multiple prosumers in the distribution level with diverse sets of distributed energy resources (DERs) needs to be addressed by considering technical and economic factors in the proposed framework. The grid information of the distribution network is used in the pricing mechanism, which is empowered by power tracing and loss allocation. The calculated prices at each bus reflect the contribution of load/generation at the corresponding buy-in of the total operating costs of the distribution network. The distribution system operator (DSO) sends the selling/buying prices to the individual prosumers. Then prosumers, regarding their objective function, economically dispatches their resources through an iterative manner. A bi-level optimization method is proposed to satisfy the benefits of both DSO and prosumers. In bi-level programming, the upper level represents DSO’s problems, and prosumers problems are presented in the lower level of programming. Furthermore, this market-clearing method is also tested under real-time conditions to evaluate its performance in such situations. The proposed methods are tested on the IEEE 33-bus system. • A new pricing method based on power tracing and loss allocation is proposed. • Exchanged power between prosumers and DSO follows price signals. • Storages mostly follow the price initiative rather than time of power production. • Including loss price increases profits of both the DSO and the prosumers. • In case of disorder in prosumers other agents increase their power production.