Distribution Locational Marginal Pricing for Combined Thermal and
Electric Grid Operation
Abstract
Distribution locational marginal prices (DLMPs) have been formulated for
electric distribution grids to economically dispatch distributed energy
resources (DERs) while addressing operational constraints of the
electric grid. This paper proposes to extend this methodology to thermal
grids, i.e, district heating or cooling systems, and specifically the
combined operation of thermal and electric grids. To this end, thermal
and electric grid models are formulated in a linear approximate model
fashion. Then, the derivation and decomposition of DLMPs is formulated
based on the combined optimal operation problem, assuming a linear state
space model form for flexible loads (FLs). The ability of the DLMPs to
reflect operational constraints in the thermal grid is demonstrated for
a test case with 22 FLs.