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  4. Optimal Energy Storage Systems Allocation in Distribution Grids using Decomposed Distribution Locational Marginal Pricing
 
conference paper

Optimal Energy Storage Systems Allocation in Distribution Grids using Decomposed Distribution Locational Marginal Pricing

Wang, Lu  
•
Austnes, Pål Forr  
•
Paolone, Mario  
2025
2025 IEEE Kiel PowerTech, PowerTech 2025
IEEE Kiel PowerTech

To exploit local energy resource flexibility and relieve congestion in distribution grids, this paper introduces a two-stage stochastic allocation model for energy storage systems (ESSs) that leverages decomposed distribution locational marginal pricing (DLMP). The planning stage determines the location and size of ESSs, while the operation stage employs a linearized Alternating Current Optimal Power Flow (ACOPF) model, to clear the local power market. A rigorous mathematical framework is provided to derive decomposed DLMP directly from the linearized OPF, enabling computationally efficient and scalable price-clearing processes. The proposed method eliminates the need for extensive price computations after solving the ACOPF, making it applicable to large-scale systems with no approximations in the grid model. The Benders decomposition is applied to solve this investment problem in view of its inherent hierarchical structure. The numerical experiments demonstrate the proposed method's effectiveness, achieving a 16.4% cost reduction compare to businesses-as-usual model over 20-year planning horizon, effectively mitigating congestion costs and reducing price fluctuations by providing lower and more stable DLMP values.

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Type
conference paper
DOI
10.1109/PowerTech59965.2025.11180303
Scopus ID

2-s2.0-105019291723

Author(s)
Wang, Lu  

EPFL

Austnes, Pål Forr  

EPFL

Paolone, Mario  

EPFL

Date Issued

2025

Publisher

Institute of Electrical and Electronics Engineers Inc.

Published in
2025 IEEE Kiel PowerTech, PowerTech 2025
ISBN of the book

9798331543976

Subjects

distribution locational marginal prices

•

distribution network

•

Energy storage systems

•

sensitivity coefficients

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
DESL  
Event nameEvent acronymEvent placeEvent date
IEEE Kiel PowerTech

Kiel, Germany

2025-06-29 - 2025-07-03

Available on Infoscience
October 30, 2025
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/255411
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