Remuneration of Distribution Networks using a Fuzzy Multicriteria Planning Algorithm

In this paper, the remuneration of fixed costs of distribution networks with distributed generation is evaluated by means of an efficient planning strategy that includes the concept of fuzzy robustness of a given solution plan. As a key contribution, it is included the possibility of choice among different conductor sizes. In order to assess the fixed costs to be remunerated at long term, a single-stage multicriteria planning problem is solved using three different criteria: initial investment cost, power losses cost and reliability cost. Pareto or efficient plans are identified using the £-constraint method jointly with a large-scale commercial package able to deal with Mixed-Integer Linear Programming (MILP). Uncertainty associated to load demand and power injections of distributed resources are integrated using a fuzzy power flow in order to obtain the robustness indexes of each Pareto solution. The annualized fixed charge rate (AFCR) associated to new and existing distribution lines at given voltage level is assessed through a with-without analysis permitting to compute the Annual Avoided Charge Rate (AACR). When avoided or deferral investments are verified, the benefits of DG connection can be transferred to consumers as reduction in base rate and to generators as localization incentive.