Cost Loss Allocation in Distribution Networks with High Penetration of Distributed Renewable Generation - A Comparative Study.

Abstract

The implementation of market mechanisms to re-munerate distributed generation should take into account a non-discriminatory access to distribution networks. In consequence, power  losses  of  distribution  network  must  be  fairly  allocated  among  the  all  distributed  generators  and  consumers.  Several  methods  for  power  loss  cost  allocation  have  been  proposed  in  the   literature,   divided   basically   into   two   groups.   Firstly,   methods   as   postage   stamp,   mw-mile,   circuit   based   and   proportional   sharing   have   been   supported   on   an   arbitrary   allocation  of  power  losses  between  consumers  and  generators,  typically   50-50%.   More   recently,   a   modified   proportional   sharing procedure has been proposed  based on the allocation of the  entire  losses  to  consumers  disregarding  the  influence  of  distributed   generators   using   the   basic   proportional   sharing   principle  and  reallocate  avoided  or  produced  losses  among  distributed   generators.   Secondly,   marginal   procedures   have   been extensively proposed in order to send efficient economical signals  to  the  market  agents.  Marginal  methods  require  a  slack  bus  designation  and  do  not  assign  arbitrarily  power  losses  among   producers   and   consumers.   This   paper   presents   a   comparative study of different loss allocation procedures taking into account different levels of penetration of renewable sources in  distribution  networks.  Results  are  obtained  and  discussed  from a test distribution network.