Dynamic Tariff-Subsidy Method for PV and V2G Congestion Management in Distribution Networks

This paper proposes a dynamic tariff-subsidy (DTS) method for congestion management in distribution networks with high penetration of photovoltaics (PV), heat pumps and electric vehicles (EVs) with vehicle-to-grid (V2G) function. The DTS method is an extension of the dynamic tariff method proposed in the previous study. With the DTS, the regulation prices can be positive (tariff) or negative (subsidy). The study shows that the negative regulation price is necessary and very effective to solve congestion due to feed-in power flows, such as PVs and EVs in the V2G mode. In the study, dual decomposition of a convex quadratic model is proposed in addition to a conventional method for the DTS calculation. The case studies on the Roy Billinton test system demonstrate the efficacy of the DTS method for congestion management in distribution networks.