Cooperative management model for an overlaping distribution network area - Part I: Problem formulation

As the utilization of microgrids continues to grow to meet the rising electricity demands, potential conflicts may surface between the established national distribution authority and microgrid owners, especially in regions where their service areas overlap. In the first part of our study, we place our main focus on developing a model for managing distribution systems. This model is rooted in cooperative principles and aims to integrate various ownership networks into a unified system, ensuring the efficient operation of natural monopolies. This model provides a solution to the complex issue of wheeling charges within areas with overlapping service territories, where all users of the network contribute to a unified system fee. In the second part of our research, we illustrate how these wheeling charges can be minimized in overlapping service regions by implementing an appropriate pricing model for distribution networks. This model is designed to cover both present operational costs and future system expansion. Our selection of Thailand as the primary reference area is based on the availability of a real-world case that reinforces the arguments presented in this study.