Energy-cost flows model of electric energy distribution at an electric network

The paper describes graph-based approach, which allows introducing the process of electric energy transmission and distribution by means of directed energy flows and cost flows in a network equivalent circuit. The main idea deals with the allocation of electric utilities' energy transport costs between output nodes of an electric network. The methodology proposed can be characterized as two-stage procedure. At the first stage, total energy transport costs are allocated between nodes (substations) and branches (power lines) proportionally to a contribution to the total electric utilities' energy transport costs of each element of a network. The results are obtained via energy flow model, which interconnects energy flows in nodes and branches. At the second stage, energy transmission & distribution costs are divided proportionally to the energy flows at each element of a network equivalent circuit, in order to quantify distribution costs for each consumer. As a result, it is possible to allocate distribution costs between nodes and branches, including electricity consumption nodes, in other words, to calculate energy-cost flows. Using the approach proposed, individual costs of electric energy transport to each particular consumption node can be easily assessed. As a result, individual transmission & distribution tariffs can be formed.