A novel hierarchical contribution factor based model for distribution use-of-system charges

A. Sharma, R. Bhakar, H.P. Tiwari, R. Li and F. Li

Applied Energy, 2017, vol. 208, issue C, No S0306261917313326, 996-1006

Abstract: Due to the limited visibility at low voltage (LV) networks, existing Distribution Use-of-System (DUoS) charging methodologies assume that all the network users use the network in proportion to their peak flows. This naive supposition fails to reflect the contribution of network users to network peak flows, which actually is the driver for network reinforcement. This can send an inadvertent signal to customers, leading to aggravated network pressure. This paper for the first time, brings the new dimension into the design of DUoS charging methodology by considering the true contribution of customer class’s load on network peak flows. It proposes a novel Hierarchical Contribution Factor based Model (HCM), recognizing the contributions of differing customer classes to the network reinforcement of upstream asset. Such contribution will be further propagated to network assets at higher voltage level, forming a Hierarchical CF model and reflecting the true individual class contribution to the whole-system reinforcement. Benefit of the proposed model on investment deferral is assessed by determining annuitized present value (PV) of future investments, and consequences are assessed on a 22-bus practical Indian reference network. The approach helps customers as a class to reduce their network usage charges by minimizing their energy usage contribution during distribution network peaks, eventually reducing distribution network investment and energy transfer costs.

Keywords: Contribution factor; Demand side response; Distribution use-of-system charges; Long-term incremental cost; LV networks; Energy economics (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261917313326
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:208:y:2017:i:c:p:996-1006

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2017.09.050

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().