The Impact of Distributed Energy Resources on the Bulk Power System: A Deeper Dive

Abstract

solar photovoltaics (PV), electric storage and electric \ vehicles, demand response, combined heat and \ power, wind, fuel cells, and micro-turbines are \ typically installed on the low or medium voltage \ distribution network. Changes on the distribution \ network can have rippling effects throughout the rest \ of the power system. In this paper, we have \ calculated both traditional locational marginal \ prices (LMPs) and distributed locational marginal \ prices (DLMPs) using an optimal power flow (DC \ OPF). This paper provides an analysis of the energy \ price impacts resulting from significant additions of \ Distributed Energy Resources (DER), namely solar \ PV, electric batteries and demand response, in a \ distribution feeder. The impact is measured in terms \ of nodal approximations to DLMPs, realistic \ calculation of LMPs in the transmission system and \ overall price suppression effects that trickle down to \ consumers on the feeder. Policy implications are \ drawn concerning the potential impacts of \ penetration of DER on future planning, and \ operation of the power system as well as on energy \ markets and the environment.