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A Stochastic Market-based Approach for Operation of Active Distribution Networks

This paper 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 proposed model is to maximize social welfare (SW) using market-based joint active and reactive optimal power flow (OPF). Firstly, 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 (MILP), which is solvable using efficient off-the-shelf branch-and cut solvers. Additionaly, this work explores the impact of wind and solar power penetration on the active and reactive distribution locational marginal prices (D-LMPs) 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.