Proposed charging method for distribution networks with distributed generation

Distribution business presents monopolistic characteristics, therefore a fair and transparent pricing of the use of system cost is essential in distribution services. In the United Kingdom, there are fourteen distribution companies representing each discrete region, the current use of system charging methodology is under re-valuation. This research focuses on the mathematical formulation and case studies of a proposed charging methodology for optimal use and expansion of a distribution network, especially when the network contains Distributed Generation (DG). The proposed charging methodology seeks to reflect the impact of the brought forward or deferred of future investment in network asset as a result of certain proportion between 1kw and 1kvar injection or withdrawal of DG at the study node. In the first case study use variety load growth rates, find out the merit of the Long Run Incremental Active Power with Reactive Power Cost LRI(P+Q)c method. In the second case study, vary the output of the DG from 0 to 0.8MW to supplement/replace power from the high voltage network to the exporting of power to the high voltage network. To demonstrate that LRI(P+Q)c can create a full valuation on the generators’ contribution to the circuit network. The aim of the charging methodology is developed by providing the correct economic signal, reflecting the true cost and promoting the uncertainties of network users, especially the DG resources.