Active Distribution Network Operation: A Market-Based Approach

This article proposes a novel technique for operation of distribution networks with considering active network management (ANM) schemes and demand response (DR) within a joint active and reactive distribution market environment. The objective of the proposed model is to maximize social welfare using market-based joint active and reactive optimal power flow. First, the intermittent behavior of renewable sources (solar irradiance, wind speed) and load demands is modeled through scenario-tree technique. Then, a network frame is recast using mixed-integer linear programming, which is solvable using efficient off-the-shelf branch-and cut solvers. Additionaly, this article explores the impact of wind and solar power penetration on the active and reactive distribution locational prices within the distribution market environment with integration of ANM schemes and DR. A realistic case study (16-bus UK generic medium voltage distribution system) is used to demonstrate the effectiveness of the proposed method.