9Impact of Battery Energy Storage Systems and Demand Response Program on Locational Marginal Prices in Distribution System
Saikrishna Varikunta* and Ashwani Kumar
Department of Electrical Engineering, National Institute of Technology, Kurukshetra, Haryana, India
Abstract
The pricing of electricity consumption is an important aspect of power system economics. Electricity pricing based on the Locational Marginal Price (LMP) is gaining attention in electricity markets all around the world due to the better distribution system markets and energy-efficient distribution of electricity with hybrid combination of energy resources. The pricing should be such that the generation, transmission, and end users should all benefit. The fairness of pricing should be present in the pricing scheme. By using Locational Marginal Price (LMP), active and reactive power pricings can be made. With LMP-based pricing, the generator, transmission operator and end users are fairly benefited. It is also believed that with the knowledge of the LMPs end users can manage their load and try to participate in a Demand Response (DR) program.
In this chapter, the Locational Marginal Price (LMP) of active and reactive powers is obtained considering the role of storage devices and the impact of a demand response program on their variations. The impact of installation of Shunt capacitor, Energy Storage System (ESS) like Battery Energy Storage System (BESS) and Load participation in Demand Response (DR) program on ...
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