Distribution Network Spatiotemporal Marginal Cost of Reactive Power

We address the extension of spatiotemporal marginal-cost-based Wholesale Transmission markets to Retail Distribution markets. We formulate the detailed Day Ahead (DA) distribution market clearing problem and solve it for real and reactive power Distribution Location-Marginal-Prices (DLMPs). Using a realistic industrial/commercial/residential distribution network, we obtain the DA market clearing DLMPs associated with several scenarios involving various levels of Distributed Generation (DG), EVs, Distribution Network Operator (DNO) owned shunt Capacitors and Dual Use (DU) of Distributed Power Electronics (DPEs) accompanying EVs and DG. Scenario specific numerical results demonstrate (i) the extent to which DLMPs differ from the Substation LMP, (ii) the impact of Line Losses, Transformer Loss of Life and hard Voltage Control Constraints on real and particularly on reactive power DLMPs, and (iii) the resilience of transmission network capacity to load growth when DPEs are put to dual use (DU).