Marginal Levelized Cost of Energy Bases Optimal Operation of Distribution System Considering Photovoltaics

The significant increase in Distribution Generation (DG) technologies such as solar and wind can provide environmental and economic benefits. However, uncontrolled solar and wind penetration at distribution level can have adverse effects on the feeders, such as overleverage. On the other hand controlling DG output can reduce the benefits for the residential level DG operators. This paper proposes a methodology for controlling residential DG output while providing incentive for their participation. The control of residential level DG is based on the power-loss and node voltage. The proposed controller will maximize the real power output, will compensate the DG operator using the leveliazed cost of energy. Marginal Levelized Cost of Energy (MCLOE) is proposed in this work for PV modules using the concept of Levelized Cost of Energy in power system operations. The proposed method is able to minimize the electricity cost by using multi-objective optimized operation strategy for a distribution system with residential PVs. A case study is also presented to validate the feasibility of proposed methodology.