Stochastic LMP (Locational marginal price) calculation method in distribution systems to minimize loss and emission based on Shapley value and two-point estimate method

• Published in: Energy (Oxford) Vol. 107; pp. 396 - 408
• Main Authors: Azad-Farsani, Ehsan, Agah, S.M.M., Askarian-Abyaneh, Hossein, Abedi, Mehrdad, Hosseinian, S.H.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 15.07.2016
• Subjects: Buses (vehicles); Electricity market; Emissions control; Estimates; Locational marginal price; Loss/emission reduction allocation; Markets; Mathematical analysis; Networks; Shapley value; State estimation; Stochasticity; Locational marginal price; Shapley value; Loss/emission reduction allocation; Electricity market
• ISSN: 0360-5442
• DOI: 10.1016/j.energy.2016.04.036

LMP (Locational marginal price) calculation is a serious impediment in distribution operation when private DG (distributed generation) units are connected to the network. A novel policy is developed in this study to guide distribution company (DISCO) to exert its control over the private units when power loss and green-house gases emissions are minimized. LMP at each DG bus is calculated according to the contribution of the DG to the reduced amount of loss and emission. An iterative algorithm which is based on the Shapley value method is proposed to allocate loss and emission reduction. The proposed algorithm will provide a robust state estimation tool for DISCOs in the next step of operation. The state estimation tool provides the decision maker with the ability to exert its control over private DG units when loss and emission are minimized. Also, a stochastic approach based on the PEM (point estimate method) is employed to capture uncertainty in the market price and load demand. The proposed methodology is applied to a realistic distribution network, and efficiency and accuracy of the method are verified. •Reduction of the loss and emission at the same time.•Fair allocation of loss and emission reduction.•Estimation of the system state using an iterative algorithm.•Ability of DISCOs to control DG units via the proposed policy.•Modeling the uncertainties to calculate the stochastic LMP.