Distribution Locational Marginal Price analysis considering technical constraints

According to the increasing penetration rate of microgrids, as responsive loads in the distribution system, it's important to consider this potential as an active player in the electricity market. Distribution system, with its characteristic features such as radial topology, low voltage level and high ratio of resistance to inductance of lines, possess exclusive specifications. This paper presents a comprehensive study to determine importance of Locational Marginal Price (LMP) in distribution level, known as Distribution Locational Marginal Price (DLMP). Application of DLMP authorize the Distribution System Operator (DSO) to make optimal decisions in network operation as well as network planning. The standard IEEE 33-bus network has been chosen as a suitable case study, where the impact of some technical constraints on DLMP have been numerically analyzed. The obtained results indicate significant change in the market clearing price. In particular, voltage constraint and line flow limitation investigate in the presence of microgrids as a responsive load. In addition, the effect of transformer tap changer and capacitor bank, as a traditional approach in voltage control of distribution systems, has been addressed.