Congestion Management in Distribution System through Distribution Congestion Prices

With the advancement of technology and the development of smart grid systems, there has been significant increase in electricity demand, which is traditionally addressed through fixed methods. In this paper, Optimal Power Flow (OPF) is considered and executed for cases involving limits, referred to as congestion, as well as for cases without limits, referred to as non-congestion. In a deregulated power system, it is understood that without regulation and congestion limits, inefficiencies in generation can be avoided. This paper introduces an innovative approach for estimating Distribution Congestion Prices (DCPs) based on nodal market mechanism. In recent years, congestion management was formulated traditionally in the transmission system level however due to the growing use of Distributed Generator (DG) and anticipated loading demand, congestion management procedure must also be implemented in the distribution system. The analysis utilizes Nodal Congestion Pricing (NCP) method, which influences the interaction between distribution system operators (DSOs) and the overall Distribution Congestion Prices are calculated. Finally, a practical 6-bus distribution system network is used as a test case to demonstrate the present of congestion in the distributed network.