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Methods for allocation of losses and network capital in system with Microgrids

- There are several methods to allocate losses that have been investigated. The methods based on:
-- Proportional allocation;
-- Marginal allocation;
-- Unsubsidised marginal allocation;
-- Proportional sharing allocation;
-- Allocation using the impedance matrix;
-- Incremental allocation of active losses;
--Loss allocation based on the results of OPF problems.

- A mechanism for neutralising the impact of choice of reference node on the magnitude and the polarity of loss allocation factors by apportioning total losses equally between generators (including the reference node) and loads has been investigated.

- A pricing methodology for distribution network with distributed generation has also been developed. The method can be used to calculate the charges for demand customers and distributed generators to recover the network capital investment. The method is based on the Long Run Marginal Investment Cost pricing concept on the reference network.

- The methodology can take into account annual loading and generation profile on the network, network characteristics (topology and network design considering security requirement).

- The results of the methodology are the time of use and location specific entry and exit DUoS tariffs for power injected or taken from the network.

- The tariffs need to be adjusted using the developed revenue reconciliation methods in order to generate adequate allowable revenue to recover the investment, and O& M costs.

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University of Manchester
Sackville Street, PO Box 88
M60 1QD Manchester
United Kingdom
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