Decomposition and Equilibrium Achieving Distribution Locational Marginal Prices Using Trust Region Method
We propose a new distribution locational marginal price (DLMP) model which is based on a linearized variant of the global energy balance formulation along with trust region based solution methodology. Compared to existing DLMP works in the literature, the proposed DLMP model has shown to depict the following features: 1) it decomposes into most general components, i.e. energy, loss, congestion, and voltage; 2) it presents market equilibrium conditions; and 3) it is capable of achieving an efficient flexibility resource allocation in local day ahead distribution grid markets. The developed model is tested first on a benchmark IEEE 33 bus distribution grid and then on much larger grids with the inclusion of dispatch from flexible loads and distributed generators.
IEEE Transactions on Smart Grid