The LCOE-Indicator-Based Comprehensive Economic Comparison between AC and DC Power Distribution Networks with High Penetration of Renewable Energy

Yi Liu, Zhanqing Yu, Haibo Li and Rong Zeng
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Yi Liu: Department of Electrical Engineering, Tsinghua University, Haidian District, Beijing 100084, China
Zhanqing Yu: Department of Electrical Engineering, Tsinghua University, Haidian District, Beijing 100084, China
Haibo Li: Tsinghua-Sichuan Energy Internet Institute, Tianfu New District, Chengdu, Sichuan Province 610213, China
Rong Zeng: Department of Electrical Engineering, Tsinghua University, Haidian District, Beijing 100084, China

Energies, 2019, vol. 12, issue 24, 1-15

Abstract: DC distribution networks are operationally economical from the perspective of renewable energy penetration due to the reduction of power loss from the simplified power conversion structure. However, the initial investment cost of a DC network is high because DC technology is in the early stage of development. So, selecting AC or DC technology becomes an important issue in the planning stage of a distribution network, where a comprehensive quantitative economic comparison between AC and DC distribution networks is necessary. To compare the economy between AC and DC distribution networks with high penetration of a renewable energy scenario, this paper introduces a comprehensive economic evaluation method. In this study, first, typical system models for AC and DC distribution networks were proposed as the foundation of the research. Then, a levelized cost of energy (LCOE)-indicator-based comprehensive economic evaluation model was established, where the operation cost was classified into power loss cost, reliability loss cost, and operational cost. A time sequential simulation model was applied to calculate the power loss. The simulation results showed that a DC distribution network has higher initial investment, operation, and maintenance costs than an AC distribution network, but the loss cost is far lower than an AC distribution network. A sensitivity analysis showed that the equipment cost and proportion of renewable energy are two of the most important factors that affect the economics of DC distribution networks at present.

Keywords: comprehensive economic evaluation; levelized cost of energy (lcoe) indicator; dc distribution network; ac distribution network (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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