Stochastic locational marginal price calculation in distribution systems using game theory and point estimate method

Abstract

This study presents a new stochastic method to estimate the locational marginal price (LMP) in the distribution networks containing distributed generation (DG). In the proposed method, LMP at each 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 game theory is proposed to allocate the loss and emission reduction among DG units. Also, a stochastic framework based on the point estimate method is considered to capture uncertainty in the market price and load demand. The proposed policy will provide a robust state estimation tool for distribution companies 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 minimised. The performance of the proposed algorithm is tested on a realistic distribution network in the deterministic and stochastic frameworks. The obtained results are encouraging.