The increasing demand coupled with expanding installation of distributed resources call for the development of smart technologies to control and optimize distribution system operations. In this paper, a distributed generation and storage optimization algorithm is proposed using pricing signals as distribution locational marginal pricing (DLMP). This signal is used to optimize the day-ahead operation planning of distributed generation and energy storage. A distribution level state estimation algorithm is also designed. The main conclusion is that the proposed optimal control and state estimation will improve the energy efficiency and economic benefits in a digitally controlled distribution power system.
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Meng et al. (2013) studied this question.
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