Evaluating the effects of demand response programs on distribution cables life expectancy

Abstract

• Evaluating the effects of DRPs on the LOL rate reduction of distribution cables. • Evaluating the effects of DRPs’ tariffs on the LOL rate of distribution cables. • Proposing a new economic benefit index. • Prioritizing various models of DRPs based on AHP method. • Maximizing utility's and customer's total benefits by determining the optimal model. Recently due to economic issues, asset management has taken more attention all over the world. Distribution cables are one of the most expensive assets of the networks. The life of a cable extremely depends on the power flowing through the cable. On the other hand, demand response programs are known as the one of the effective solutions for managing networks’ power consumption. They can affect the power flowing through the distribution cables. However, the impacts that the demand response programs might have on the life expectancy of the distribution cables are generally neglected in previous research studies. So, this paper proposes a new approach to evaluating the effects of demand response programs on the life expectancy of distribution cables. Simulations have been carried out on a realistic distribution network, and the results are investigated considering various models of the demand response program and different levels of their tariffs. The results show a significant economic benefit due to distribution cables’ life extension resulted from demand response programs implementation, despite differences among various models. However, the benefit's scale dramatically depends on the model of the demand response program and the level of tariffs. Also, in order to select the optimal demand response model, economic analysis is conducted from both utility's and customer's perspectives. For this purpose, a new economic benefit index is proposed, and the best solution is determined by the distribution system's regulator based on an Analytical Hierarchy Process so as to it can satisfy all the stakeholders of demand response programs.