Economic Evaluation of Distributed Resources by Locational Marginal Price

Economic evaluation of distributed resources (DRs), such as distributed PVs and energy storage systems (ESSs), is necessary when vast amounts of DRs have been integrated. Locational marginal price (LMP) is a critical index for market and incentive management. For its calculation, distributed optimization is favored over centralized optimization. In this paper, an alternative direction method of multiplier (ADMM) -based convexified OPF model is built for solving LMPs. The ADMM algorithm implementation and the subproblem formulation for distribution networks, distributed PVs, and ESSs are presented. The case study has been conducted to evaluate the LMPs of the DRs under different installed capacities.