Distribution Network Pricing to Mitigate Uncertain Load Scenario

Distribution network pricing approaches produces forward looking, economically efficient, and locational pricing signal to users. Such approaches assume a fixed load growth rate in all future scenarios, which is practically not possible. Uncertain load growth rate may cause the asset capacity's full utilization before the reinforcement time period. So, from the reliability perspective some asset capacity needs to be reserved. In this paper LRIC pricing model has been enhanced to accommodate the uncertain load growth. Minimum allowable reserve capacity (MARC) has been incorporated in basic LRIC model to cope up the risk of uncertain load growth rate. The proposed pricing approach is demonstrated on a 22-bus practical Indian reference network. Results from proposed approach are validated with basic LRIC approach.