Abstract
This paper considers distribution network asset degradation, namely transformer and cable aging, in the context of the day-ahead operational planning in active distribution networks. The focus of this work is to quantify aging as a short-run network variable cost, and complement accordingly Distribution Locational Marginal Cost (DLMC) components. Short-run dynamic DLMCs are defined using sensitivity analysis of a centralized enhanced AC Optimal Power Flow model, providing incentives for optimal DER scheduling. Results indicate that optimal DER scheduling leads to smoother DLMC marginal aging component profiles compared to popular “open-loop”, e.g., Time of Use, pricing schemes.
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