A combined nodal and uniform pricing mechanism for congestion management in distribution power networks

We present a price-based approach for congestion management in distribution power systems with renewable generations with the final goal of maximizing a social welfare function which includes net revenues of network users as well as the cost of real power losses. Particularly, we design a combined nodal and uniform pricing mechanism for maximization of the social welfare function while maintaining voltage magnitudes in a desired bound and respecting the grid's actual capacity. Storage systems are considered in order to increase/add elasticity to generations and loads. Simulation results are provided for a modified IEEE-37 bus. A scenario is numerically simulated where the excess of generation in the absence of storage and price signals leads to deviations of voltages from a desired bound. Thereafter, it is shown that the application of the price signals is effective to maintain the voltages within the desired bound while the designed social welfare function is maximized.