Volume 8, Issue 3 (10-2018)                   JEM 2018, 8(3): 0-0 | Back to browse issues page

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Sedaghati A. A New Long Run Marginal Cost Pricing Method for Revenue Reconciliation of Transmission Network in Restructured Power System. JEM. 2018; 8 (3)
URL: http://energy.kashanu.ac.ir/article-1-958-en.html
Abstract : The long run incremental and marginal pricing are two different approaches for pricing of transmission and distribution networks usage. The main difference between these two methods is how to calculate the cost of using the network. In the first approach simulations are used, and in the latter, sensitivity analysis methods are used to determine the cost. In this paper, a novel analytical method based on long run marginal pricing with a new sensitivity analysis is presented that can show the effect of power injections on the buses over the long-term costs of the network reinforcement. Sensitivity analysis consists of three partial derivatives including 1) the sensitivity of network power flow due to increased power injection at the bus, 2) the sensitivity of the network reinforcement time according to the power lines change, and 3) the sensitivity of the present value of future reinforcement with respect to changes in time to reinforce. A practical distribution network, which is part of the transmission network, is used to illustrate the theoretical and practical principles of the proposed method. The results of the incremental and marginal approaches are compared in different system conditions. The results show that the proposed method can produce forward-looking charges that reflect the extent of network utilization level, as well as the distance between generation and consumption. The proposed method will also illustrate the factors that affect network tariffs.
Type of Study: Research | Subject: Electrical Engineering

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