Network pricing for high voltage radial distribution networks

Abstract

Network pricing is considered to be one of the effective ways to guide future demand and generation connection in distribution networks so as to encourage more efficient network usage and guide optimal development. Presently, the Distribution Reinforce Model (DRM) is utilized for High Voltage (HV) and/or Low Voltage (LV) distribution network pricing in the UK. The shortcoming with the model is that it generates average charges at each voltage level, unable to truly reflect use-of-system by customers as well as provides no locational signals to influence customers' behaviors. The Long Run Incremental Cost (LRIC) charging methodology is recognized by Distribution Network Operators (DNOs) being able to produce cost-reflective, locational charges, but it cannot be directly utilized at HV and LV levels due to the complexity of its implementation. This paper aims at applying the LRIC model into HV network pricing by making specific improvements on the model to accommodate the features of HV networks. Firstly, radial distribution network reduction techniques are introduced, which is able to reduce original networks to simple network but maintaining their features for power flow calculation. Thereafter, the equivalent parameters of the reduced networks associated with implementing the LRIC are determined. The proposed method evolves from the original LRIC model, which can reflect the extent of networks needed to service generation and demand, and the degree to which networks are utilized. Results show the validation and feasibility of the proposed method in this study.