On LinDistFlow Model Congestion Pricing: Bounding the Changes in Power Tariffs

Abstract: The optimal power flow (OPF) problem is an important mathematical program that aims at obtaining the best operating point of an electric power grid. The optimization problem typically minimizes the total generation cost subject to certain physical constraints of the system. The so-called linearized distribution flow (LinDistFlow) model leverages a set of linear equations to approximate the nonlinear AC power flows. In this paper, we consider an OPF problem based on the LinDistFlow model for a single-phase radial power network. We derive closed-form solutions to the marginal values of both real and reactive power demands. We also derive upper bounds on the congestion price (a.k.a. `shadow price'), which denotes the change in marginal demand prices when the apparent power flow limits of certain lines are binding at optimum. Various cases of our result are discussed while simulations are carried out on a $141$-bus radial power network.