A Price-Based Load Flow Algorithm in Decentralized Distribution Markets

Abstract

With the addition of new elements such as distributed generation, demand response, and price-sensitive loads, as well as grid smartness, the operation and management of distribution networks have faced additional complexities. Hence, the electricity price has a vital role for all market participants and strongly affects the demand, generation, and subsequently, the load flow analysis in the network. In this situation, there is a need for a load flow algorithm in which price is integrated into load flow equations. Therefore, this paper seeks to present a suitable algorithm called price-based load flow which considers the electricity price as a state variable similar to technical variables. In this situation, the price is added to the load flow equations as a new state variable and the effect of location on the price is considered. Therefore, it is possible to use the radial structure of the distribution network and communication between adjacent buses in order to provide an effective and appropriate method to find the price simultaneously with technical variables. The numerical study on the IEEE 33-bus distribution network shows the performance of the proposed method. Unlike the centralized market structure, the method does not need all network information to calculate distribution locational marginal price using optimal power flow. In this method, each bus can perform its computation only by information exchange with adjacent buses.