Abstract
Distributed Energy Resources (DERs) including solar photovoltaics (PV), electric storage and electric vehicles, demand response, combined heat and power, wind, fuel cells, and micro-turbines are typically installed on the low or medium voltage distribution network. Changes on the distribution network can have rippling effects throughout the rest of the power system. In this paper, we have calculated both traditional locational marginal prices (LMPs) and distributed locational marginal prices (DLMPs) using an optimal power flow (DC OPF). This paper provides an analysis of the energy price impacts resulting from significant additions of Distributed Energy Resources (DER), namely solar PV, electric batteries and demand response, in a distribution feeder. The impact is measured in terms of nodal approximations to DLMPs, realistic calculation of LMPs in the transmission system and overall price suppression effects that trickle down to consumers on the feeder. Policy implications are drawn concerning the potential impacts of penetration of DER on future planning, and operation of the power system as well as on energy markets and the environment.
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