Will power company be profitable from non-utility-owned distributed generators planning with peer-to-peer strategy?

Abstract

With the high penetration of renewable energy integrated into distribution networks, distributed generators (DGs) are encouraged to participate in market competition with a “peer-to-peer” (P2P) strategy. The operation strategy of the distribution network is increasingly characterized by weak centralization and decentralization. The traditional centralized operation strategy of the distribution network is difficult to ensure the efficiency and effectiveness of terminal energy consumption calculation and equipment regulation, which increases the complexity of distributed energy interactive operation cost calculation and subsequent planning scheme evaluation. Consequently, to enhance the penetration of DGs in distribution networks and ensure their economic operation, the distribution network planning calls for market-oriented integration reform and theoretical innovation. Hence, this paper investigates whether P2P strategy has a profitable and attractive point for power companies if non-utility-owned DGs are integrated into distribution networks. An investment planning scheme of the distribution network is presented to improve the profit of the power company. Network usage charges (NUC) is introduced to provide charge service for both parties of power transaction and optimize the distribution network planning and operation strategy. The profit of power companies is maximized by NUC while the economic benefit of non-utility-owned DGs is also taken into account. The effectiveness and availability of non-utility-owned DGs planning with P2P strategy on investment planning profit are illustrated by the numerical case studies.