Dynamic network pricing based on smart reference networks

Network pricing is a complex issue, considering the network size and other facets. For distribution networks, reference network aids in quick decision making, for network operation and pricing. There is a sustained interest for development of dynamic network pricing mechanisms to reflect network cost on a real time basis. Recent developments in smart grid technologies have offered opportunities to utilise these innovative technologies for real time network pricing. The paper proposes an integrated framework for providing dynamic network pricing for practical distribution networks. This framework introduces an integration of network reconfiguration algorithm in association with reference network formation algorithm. Considering the dynamic nature of networks, their reference network would also change with them. With real time inputs, it is possible to form a reference network for every eventuality in the system in real time, and carry out quick analyses based on these smart reference networks, and offer real time dynamic network pricing.