Distribution Locational Marginal Pricing Under Uncertainty Considering Coordination of Distribution and Wholesale Markets

A rapidly growing amount of small-scale distributed energy resources (DERs) integrated into distribution systems call for an effective electricity market to manage the uncertainty DERs and remove barriers participation in wholesale markets. To this end, paper proposes uncertainty-aware locational marginal pricing (DLMP) mechanism based on robust optimization day-ahead markets within a transmission-distribution coordinated framework. The transmission-level model clears forms transmission prices (LMPs) price energy, reserve, uncertainty. At level, optimization-based DLMP is proposed that internalizes uncertainties coordinates with market. Besides active reactive power DLMPs, introduced reward reserve charge uncertainties. novel provides transparent comprehensive signals managing voltage, congestion, loss, especially solved decentralized manner by heterogeneous decomposition algorithm. Distribution are through fully utilize generation resources. Accordingly, DMLPs highly correlated consistent LMPs, thus allow participate effectiveness method verified via numerous case studies.