Dynamic Subsidy Method for Congestion Management in Distribution Networks

Shaojun Huang, Qiuwei Wu

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    Abstract

    Dynamic subsidy (DS) is a locational price paid by the distribution system operator (DSO) to its customers in order to shift energy consumption to designated hours and nodes. It is promising for demand side management and congestion management. This paper proposes a new DS method for congestion management in distribution networks, including the market mechanism, the mathematical formulation through a two-level optimization, and the method solving the optimization by tightening the constraints and linearization. Case studies were conducted with a one node system and the Bus 4 distribution network of the Roy Billinton Test System (RBTS) with high penetration of electric vehicles (EVs) and heat pumps (HPs). The case studies demonstrate the efficacy of the DS method for congestion management in distribution networks. Studies in this paper show that the DS method offers the customers a fair opportunity to cheap energy prices and has no rebound effect.
    Original languageEnglish
    JournalIEEE Transactions on Smart Grid
    Volume9
    Issue number3
    Pages (from-to)2140 - 2151
    ISSN1949-3053
    DOIs
    Publication statusPublished - 2016

    Bibliographical note

    (c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.

    Keywords

    • Congestion management
    • Distribution system operator (DSO)
    • Dynamic subsidy
    • Electric vehicle (EV)
    • Heat pump (HP)

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