The paper addresses the challenge of ensuring fair distribution of benefits in electric power systems, a significant issue in energy policymaking. Traditional power system engineering studies struggle to quantify these efforts effectively. To bridge this gap, the authors introduce the concept of locational marginal burden (LMB). LMB serves as an interface between energy pricing equity, measured by energy burden, and the optimal power flow (OPF) problem.
The core of the study lies in exploring the intrinsic connection between the dual optimal solution of an OPF problem and electricity prices. These prices are crucial for calculating the energy burden. By leveraging differentiable optimization techniques, the locational marginal prices (LMPs) associated with an OPF solution can be differentiated with respect to demand. This differentiation process extends to electricity retail prices and, consequently, to the energy burden itself, leading to the formulation of LMB.
To validate the proposed LMB, the authors conduct simulations using a synthetic Hawaii network, integrated with real-world socioeconomic data. The results demonstrate that LMB offers new insights into how the operation of the electricity network impacts the equity of energy prices. This approach provides a quantifiable measure of energy pricing equity, which has been a challenging aspect of power system engineering studies.
The introduction of LMB represents a significant advancement in linking energy pricing equity with power system operations. By differentiating LMPs with respect to demand, the study provides a novel method to assess and improve the fairness of electricity pricing. The simulation results underscore the potential of LMB to offer valuable insights into the equitable distribution of energy costs, making it a useful tool for policymakers and engineers alike.
