Distribution pricing: theoretical principles and practical approaches

Electricity distribution tariffs and distributed generation: Quantifying cross-subsidies from consumers to prosumers

“…In [19], a thorough overview of optimal pricing methodologies for electricity grids is presented. The overview focuses on the distribution sector; the pros and cons of traditional accounting methods and the application of long-term marginal cost (LTMC) and short-term marginal cost (STMC) methodologies are explained in detail.…”

“…The overview focuses on the distribution sector; the pros and cons of traditional accounting methods and the application of long-term marginal cost (LTMC) and short-term marginal cost (STMC) methodologies are explained in detail. [19] also explores how these methodologies have recently been challenged in favor of refinements based on cost causality.…”

“…Foundational principles and traditional methodologies for utility pricing [5], [7], [8], [10], [19] Innovative approaches to network and utility pricing [20], [21] Impacts of tariff-based cross-subsidies associated with DG [22], [23] In general, the literature speaks to the challenge of tariff design under a high rate of DG penetration either only theoretically and qualitatively, or without sufficient quantitative consideration of systemcost causation by customer category. This analysis investigates the connection between costs and tariffs and contributes to the literature by focusing on net metering for PV in the medium-voltage and low-voltage distribution systems.…”

Quantifying distribution-system operators' economic incentives to promote residential demand response

“…In Europe, wholesale electricity markets have evolved towards sending optimal economic signals via marginal-cost pricing for energy trading on at least an hour-by-hour basis to incorporate the shortterm costs of electricity production. If such an approach is taken in pricing distribution it would entail the use of energy sale or purchase prices as pertaining to each node in the grid (Reneses and Rodríguez, 2014). Along these lines, marginal-cost application would be inclusive of power losses and congestion constraints, taking the network capacity as a given.…”

A hierarchical dispatch structure for distribution network pricing

“…Coupled with smart grid development, efficient operation of power system is of major importance, [1]. However, distribution grids with increasing penetration of distributed generators (DGs), smart meters, demand response and electric vehicles (EVs) remain lacking proper locational marginal price signals for the growing prosumers as well as third-party innovation, [2].…”