DLMP of Competitive Markets in Active Distribution Networks: Models, Solutions, Applications, and Visions

Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN) operation, a distribution-level electricity market has been p...

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Veröffentlicht in:	Proceedings of the IEEE Jg. 111; H. 7; S. 725 - 743
Hauptverfasser:	Wang, Xiaofei, Li, Fangxing, Bai, Linquan, Fang, Xin
Format:	Journal Article
Sprache:	Englisch
Veröffentlicht:	New York IEEE 01.07.2023 The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Schlagworte:	AC machines Active distribution network (ADN) Active distribution networks alternating current optimal power flow (ACOPF) centralized Clearing convexification; demand response (DR) Costs Current distribution direct current optimal power flow (DCOPF) distributed and decentralized solution methods distributed energy resource (DER) Distributed generation Distributed power generation distribution locational marginal price (DLMP) Distribution networks distribution system operator (DSO) distribution-level electricity market Electric power distribution Electricity supply industry Energy sources Generators linearization microgrid (MG) Optimal control peer-to-peer (P2P) trading Peer-to-peer computing Power distribution networks Power markets Pricing State-of-the-art reviews Voltage
ISSN:	0018-9219, 1558-2256
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Abstract	Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN) operation, a distribution-level electricity market has been proposed to manage new complexities efficiently. In addition, distribution locational marginal price (DLMP) has been established in the literature as the primary pricing mechanism. The DLMP inherits the LMP concept in the transmission-level wholesale market but incorporates characteristics of the distribution system, such as high <inline-formula> <tex-math notation="LaTeX">R/X </tex-math></inline-formula> ratios and power losses, system imbalance, and voltage regulation needs. The DLMP provides a solution that can be essential for competitive market operation in future distribution systems. This article first provides an overview of the current distribution-level market architectures and their early implementations. Next, the general clearing model, model relaxations, and DLMP formulation are comprehensively reviewed. The state-of-the-art solution methods for distribution market clearing are summarized and categorized into centralized, distributed, and decentralized methods. Then, DLMP applications for the operation and planning of DERs and distribution system operators (DSOs) are discussed in detail. Finally, visions of future research directions and possible barriers and challenges are presented.
AbstractList	Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN) operation, a distribution-level electricity market has been proposed to manage new complexities efficiently. In addition, distribution locational marginal price (DLMP) has been established in the literature as the primary pricing mechanism. The DLMP inherits the LMP concept in the transmission-level wholesale market but incorporates characteristics of the distribution system, such as high <inline-formula> <tex-math notation="LaTeX">R/X </tex-math></inline-formula> ratios and power losses, system imbalance, and voltage regulation needs. The DLMP provides a solution that can be essential for competitive market operation in future distribution systems. This article first provides an overview of the current distribution-level market architectures and their early implementations. Next, the general clearing model, model relaxations, and DLMP formulation are comprehensively reviewed. The state-of-the-art solution methods for distribution market clearing are summarized and categorized into centralized, distributed, and decentralized methods. Then, DLMP applications for the operation and planning of DERs and distribution system operators (DSOs) are discussed in detail. Finally, visions of future research directions and possible barriers and challenges are presented. Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN) operation, a distribution-level electricity market has been proposed to manage new complexities efficiently. In addition, distribution locational marginal price (DLMP) has been established in the literature as the primary pricing mechanism. The DLMP inherits the LMP concept in the transmission-level wholesale market but incorporates characteristics of the distribution system, such as high [Formula Omitted] ratios and power losses, system imbalance, and voltage regulation needs. The DLMP provides a solution that can be essential for competitive market operation in future distribution systems. This article first provides an overview of the current distribution-level market architectures and their early implementations. Next, the general clearing model, model relaxations, and DLMP formulation are comprehensively reviewed. The state-of-the-art solution methods for distribution market clearing are summarized and categorized into centralized, distributed, and decentralized methods. Then, DLMP applications for the operation and planning of DERs and distribution system operators (DSOs) are discussed in detail. Finally, visions of future research directions and possible barriers and challenges are presented.
Author	Li, Fangxing Fang, Xin Wang, Xiaofei Bai, Linquan
Author_xml	– sequence: 1 givenname: Xiaofei orcidid: 0000-0001-7783-4204 surname: Wang fullname: Wang, Xiaofei organization: Department of Electrical Engineering and Computer Science, The University of Tennessee, Knoxville, TN, USA – sequence: 2 givenname: Fangxing orcidid: 0000-0003-1060-7618 surname: Li fullname: Li, Fangxing email: fli6@utk.edu organization: Department of Electrical Engineering and Computer Science, The University of Tennessee, Knoxville, TN, USA – sequence: 3 givenname: Linquan orcidid: 0000-0002-1408-0369 surname: Bai fullname: Bai, Linquan organization: Department of Systems Engineering and Engineering Management, The University of North Carolina, Charlotte, NC, USA – sequence: 4 givenname: Xin orcidid: 0000-0002-7979-803X surname: Fang fullname: Fang, Xin organization: National Renewable Energy Laboratory (NREL), Golden, CO, USA
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Snippet	Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy...
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SubjectTerms	AC machines Active distribution network (ADN) Active distribution networks alternating current optimal power flow (ACOPF) centralized Clearing convexification; demand response (DR) Costs Current distribution direct current optimal power flow (DCOPF) distributed and decentralized solution methods distributed energy resource (DER) Distributed generation Distributed power generation distribution locational marginal price (DLMP) Distribution networks distribution system operator (DSO) distribution-level electricity market Electric power distribution Electricity supply industry Energy sources Generators linearization microgrid (MG) Optimal control peer-to-peer (P2P) trading Peer-to-peer computing Power distribution networks Power markets Pricing State-of-the-art reviews Voltage
Title	DLMP of Competitive Markets in Active Distribution Networks: Models, Solutions, Applications, and Visions
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