Some consumers, such as householders , are unwilling to face volatile electricity prices, and  perceive as unfair price differentiations based on location . For these reasons, nodal prices in distribution networks are rarely employed. However, the increasing availability of renewable resources in distribution grids, and emerging price-elastic behaviour, pave the way for the effective introduction of marginal nodal pricing schemes in distribution networks. The aim of the proposed framework is to show how traditional non-flexible consumers can coexist with flexible users in a local distribution area , where the latter pay nodal prices whereas the former are charged a fixed price , which is derived by the underlying nodal prices. In addition, it determines how the distribution system operator should manage the local grid by optimally determining the lines to be expanded, and the collected network tariff levied on network users, while accounting for both congestion rent and investment costs. The proposed framework is formulated as a non-linear integer bilevel model , which is then recast as an equivalent single optimization problem, by using integer algebra and complementarity relations. The power flows in the distribution area are modelled by resorting to a second-order cone relaxation, whose solution is exact for radial networks under mild assumptions. The final model results in a mixed-integer quadratically constrained program, which can be solved with off-the-shelf solvers. Numerical test cases based on a 5-bus and a 33-bus networks are reported to show the effectiveness of the proposed method.
Some consumers, particularly households , are unwilling to face volatile electricity prices, and they can perceive as unfair price differentiation in the same local area . For these reasons, nodal prices in distribution networks are rarely employed. However, the increasing availability of renewable resources and emerging price-elastic behaviours pave the way for the effective introduction of marginal nodal pricing schemes in distribution networks. The aim of the proposed framework is to show how traditional non-flexible consumers can coexist with flexible users in a local distribution area . Flexible users will pay nodal prices , whereas non-flexible consumers will be charged a fixed price derived from the underlying nodal prices. Moreover, the developed approach shows how a distribution system operator should manage the local grid by optimally determining the lines to be expanded, and the collected network tariff levied on grid users, while accounting for both congestion rent and investment costs. The proposed model is formulated as a non-linear integer bilevel program , which is then recast as an equivalent single optimization problem, by using integer algebra and complementarity relations. The power flows in the distribution area are modelled by resorting to a second-order cone relaxation, whose solution is exact for radial networks under mild assumptions. The final model results in a mixed-integer quadratically constrained program, which can be solved with off-the-shelf solvers. Numerical test cases based on both 5-bus and 33-bus networks are reported to show the effectiveness of the proposed method.
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such as householders
particularly households
A
they can
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differentiations based on location
differentiation in the same local area
D
in distribution grids,
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behaviour,
behaviours
R
, where the latter
. Flexible users will
R
whereas the former are
, whereas non-flexible consumers will be
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, which is derived by
derived from
R
In addition, it determines how the
Moreover, the developed approach shows how a
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network
grid
R
framework
model
R
model
program
R
a
both
D
a