Day-Ahead Congestion Management in Distribution Systems through Household Demand Response and Distribution Congestion Prices

Weijia Liu, Qiuwei Wu, Fushuan Wen, Jacob Østergaard

Research output: Contribution to journalJournal articleResearchpeer-review

556 Downloads (Pure)


With the development of smart grid technologies, some of the electric demands which are traditionally considered fixed and inflexible will become promising distributed energy resources (DERs) in future power systems. However, the participation of small scale or household energy sources into balancing power might challenge the operation of electric distribution systems and cause congestions. This paper presents a distribution congestion price (DCP) based market mechanism to alleviate possible distribution system congestions. By employing the loca-
tional marginal pricing (LMP) model, the proposed DCPs are able to reflect the real congestion cost and further direct the schedule of the responses of electric demands. Based on the NordPool Spot market structure, the interactions between aggregators and the distribution system operator (DSO) are discussed, and the procedure for calculating DCPs is proposed. Finally, a practical Danish 60kV/10.5kV distribution system is employed as the test case to verify the proposed method for mitigating congestion.
Original languageEnglish
JournalIEEE Transactions on Smart Grid
Issue number6
Pages (from-to)2739-2747
Publication statusPublished - 2014


  • Congestion management
  • Household demand response
  • Distribution system
  • Distribution congestion price

Cite this