Locational effects of variability of injected power on total cost

This paper introduces locational prices associated with power injection variability. The sensitivity of uncertainty in injected power on system cost is calculated using a probabilistic DC optimal power flow (DC-OPF). This sensitivity may be used as a price for regulation to equitably allocate costs associated with tracking power injections. In this context the price also provides a locational value to energy storage and hence can be used as a tool to investigate best locations for energy storage. As a case study, a 24-bus test system with uncertain variable wind power and uncertain variable loads is analyzed.