Distribution Electricity Pricing under Uncertainty

Robert Mieth, Yury Dvorkin

Research output: Contribution to journalArticlepeer-review


Distribution locational marginal prices (DLMPs) facilitate the efficient operation of low-voltage electric power distribution systems. We propose an approach to internalize the stochasticity of renewable distributed energy resources (DERs) and risk tolerance of the distribution system operator in DLMP computations. This is achieved by means of applying conic duality to a chance-constrained AC optimal power flow. We show that the resulting DLMPs consist of the terms that allow to itemize the prices for the active and reactive power production, balancing regulation, network power losses, and voltage support provided. Finally, we prove the proposed DLMP constitute a competitive equilibrium, which can be leveraged for designing a distribution electricity market, and show that imposing chance constraints on voltage limits distorts the equilibrium.

Original languageEnglish (US)
Article number8910409
Pages (from-to)2325-2338
Number of pages14
JournalIEEE Transactions on Power Systems
Issue number3
StatePublished - May 2020


  • Power generation control
  • power system economics
  • stochastic systems
  • uncertainty

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering


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