AC power flow based DLMP calculation and decomposition method to smooth power fluctuation of distributed renewable energy sources

As the penetration of renewable energy sources increases, the growing renewable power variability brings ramping issues to power systems. Meanwhile, the development of distributed energy resources (DERs) makes the distribution systems to provide both energy and ancillary services. To incentivise individual resources and customers to alleviate ramping issues on the demand side, a two-stage distribution locational marginal price (DLMP) calculation and decomposition method is developed to formulate the marginal power ramping price for DERs. In the first stage of the proposed method, a distribution system operator market scheduling model based on AC optimal power flow is designed to estimate the optimal operating point of the distribution system. Subsequently, the voltage and power flow constraints are linearised in stage two to calculate DLMP. Finally, based on the Lagrange function and sensitivity factors, DLMP is decomposed to the marginal costs for active/reactive power, voltage management, power loss and power variability. Case studies demonstrate that the proposed model can effectively smooth the power fluctuation and reduce the ramping flexibility requirements of distribution systems.