Pricing mechanism for flexible loads using distribution grid Hedging Rights

• Main Authors: Hanif, Sarmad, Creutzburg, Philipp, Gooi, Hoay Beng, Hamacher, Thomas
• Other Authors: School of Electrical and Electronic Engineering
• Format: Article
• Language: English
• Published: 2020
• Subjects: Engineering::Electrical and electronic engineering; Distribution Locational Marginal Prices (DLMPs); Hedging Rights (HRs)
• Online Access: https://hdl.handle.net/10356/141517
• Institution: Nanyang Technological University

This paper proposes a new pricing mechanism for the integration of flexible loads in distribution grids. This price is calculated from an envisioned two-layer local distribution grid market, where flexible load aggregators are price takers and the distribution system operator (DSO) is the market ope...