Review of usage-based transmission cost allocation methods under open access [discussion]

Zolezzi, Juan M.; Rudnick, H.; Danitz, F.; Białek, Janusz; Pan, Jiuping; Teklu, Y.; Rahman, Sadek; Jun, K.

doi:10.1109/59.962455

Cited by 9 publications

(3 citation statements)

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“…grand coalition of customers) multiplied by a factor of 1.5 (to account for distribution line emergency limit). We have assumed that the probability of a coalition's 50 POE peak demand exceeding the line limit follows a Weibull distribution, X ∼ W(α, β) 3 . The twoparameter Weibull distribution function is defined as:…”

Section: A Turvey-shapley Value Lrmc Methodologymentioning

confidence: 99%

“…Hence, distribution network service providers (DNSPs) and regulators in most jurisdictions are challenged with the tasks of designing efficient tariffs that are reflective of network cost drivers [1]. Recent studies in this area have explored different methods for distribution network pricing, including transmission network pricing methodologies, such as Locational Marginal Pricing (LMP), Postage Stamp (PS), MW-Mile, MVA-Mile, Average Participation (AP), and Marginal Participation (MP) [2][3][4][5][6], Ramsey-Boiteux pricing, cooperative game theory or other extemporaneous cost allocation methodologies. However, in order to establish the performance of these methods with respect to established tariff design principles [7], which includes cost reflectiveness, efficiency, stability and fairness, we need to define a measure (benchmark) of overall performance, with which to compare existing methods.…”

Section: Introductionmentioning

confidence: 99%

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A Turvey-Shapley Value Method for Distribution Network Cost Allocation

Azuatalam,

Chapman,

Verbič

2019

Preprint

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This paper proposes a novel cost-reflective and computationally efficient method for allocating distribution network costs to residential customers. First, the method estimates the growth in peak demand with a 50% probability of exceedance (50POE) and the associated network augmentation costs using a probabilistic long-run marginal cost computation based on the Turvey perturbation method. Second, it allocates these costs to customers on a cost-causal basis using the Shapley value solution concept. To overcome the intractability of the exact Shapley value computation for real-world applications, we implement a fast, scalable and efficient clustering technique based on customers' peak demand contribution, which drastically reduces the Shapley value computation time. Using customer load traces from an Australian smart grid trial (Solar Home Electricity Data), we demonstrate the efficacy of our method by comparing it with established energy-and peak demand-based cost allocation approaches.

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Section: A Turvey-shapley Value Lrmc Methodologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A Turvey-Shapley Value Method for Distribution Network Cost Allocation

Azuatalam,

Chapman,

Verbič

2019

Preprint

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show abstract

“…With regard to the allocation and recovery of fixed network costs, "extent-of-use" or MW-mile methods as first proposed by [8], recently reviewed by [9] and [10], and extended by [11], little has been done to apply these methods to distribution until [12]. The main idea behind these methods is to allocate fixed network costs based on the location and impact of loads and generation on the system rather than through averaging.…”

Section: Introductionmentioning

confidence: 99%

Towards a Cost Causation-Based Tariff for Distribution Networks With DG

Sotkiewicz

Vignolo

2007

IEEE Trans. Power Syst.

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Abstract-This paper decomposes the effects of the transition from an average cost distribution tariff to a cost causation based distribution tariff, in terms of time and location, that uses nodal prices to recover losses and an "extent-of-use" method to recover fixed network costs based on use at coincident peak.Our decomposition is designed so that the effects of using coincident peak and location for fixed network charges, as well as using marginal losses under constraints recovering the exact amount of losses, and recovering exactly the cost of network service in total can be isolated and analyzed separately.We apply our tariff transition and decomposition method to an example network with data from Uruguay to isolate the various effects with and without a distributed generation (DG) resource. We show moving to coincident peak charges and to fully charging for marginal losses while rebating the merchandising surplus through the fixed charges have the greatest effects on changes in distribution tariff charges. DG provides countervailing cost changes to distribution tariffs for loads through loss reductions and the implicit "creation" of new network capacity for which it is paid. The interaction of all these effects may lead to outcomes that are counter-intuitive, which further supports the need to decompose the tariff changes to fully understand the reasons for the direction and magnitude of changes in tariff charges in the transition to tariffs based more on cost causation.

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Peer-To-Peer Transaction Model Among Prosumers Considering Franchise Rights of Distribution Companies

Lin,

Zhan,

et al. 2024

Lecture Notes in Electrical Engineering

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Review of usage-based transmission cost allocation methods under open access [discussion]

Cited by 9 publications

References 1 publication

A Turvey-Shapley Value Method for Distribution Network Cost Allocation

A Turvey-Shapley Value Method for Distribution Network Cost Allocation

Towards a Cost Causation-Based Tariff for Distribution Networks With DG

Peer-To-Peer Transaction Model Among Prosumers Considering Franchise Rights of Distribution Companies

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