Dynamic Power Tariff for Congestion Management in Distribution Networks

This paper proposes dynamic power tariff (DPT), a new concept for congestion management in distribution networks with high penetration of electric vehicles (EVs), and heat pumps (HPs). The DPT concept is proposed to overcome a drawback of the dynamic tariff (DT) method, i.e., DPT can replace the price sensitivity parameter in the DT method, which is relatively unrealistic in practice.

Based on the control theory, a control model with two control loops, i.e., the power flow control and voltage control, is established to analyze the congestion management process by the DPT method. Furthermore, an iterative method based on distributed optimization is proposed to determine the DPT rates, which enables active participation of aggregators in the congestion management.

The case studies demonstrate the efficacy of the DPT method for congestion management in distribution networks, and show its ability to save congestion management cost compared to the DT methods.