Long-run marginal cost pricing based on network spare capacity

Fu-Rong Li

doi:10.1109/TPWRS.2007.894849

Long-run marginal cost pricing based on network spare capacity

Fu-Rong Li

Department of Electronic & Electrical Engineering

Research output: Contribution to journal › Article › peer-review

29 Citations (SciVal)

255 Downloads (Pure)

Abstract

This paper proposes a novel approach for providing long-run marginal cost (LRMC) pricing in network charges. The proposed approach makes use of the unused capacity of an exiting network to reflect the cost of advancing or deferring future investment consequent upon the perturbation of generation or load at each study node on a distribution or transmission network. Compared with existing approaches to LRMC pricing, the proposed approach produces forward-looking charges that reflect both the extent of the network needed to service the generation and/or load, and the degree to which that network is utilized

Original language	English
Pages (from-to)	885-886
Journal	Power Systems, IEEE Transactions on
Volume	22
Issue number	2
DOIs	https://doi.org/10.1109/TPWRS.2007.894849
Publication status	Published - 2007

Keywords

Pricing
Power system economics
Equilibrium
network spare capacity
generation perturbation
long-run marginal cost pricing
investment
network charges
load perturbation
forward-looking charges

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10.1109/TPWRS.2007.894849

li_f_IEEE_Power_Sys_07.pdf
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Cite this

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Long-run marginal cost pricing based on network spare capacity

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Keywords

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ECONOMICALLY EFFICIENT NETWORK CHARGING METHODOLOGY FOR A SY STEM WITH SIGNIFICANT INTERMITTENT GENERATION - ARF

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Long-run marginal cost pricing based on network spare capacity

Abstract

Keywords

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ECONOMICALLY EFFICIENT NETWORK CHARGING METHODOLOGY FOR A SY STEM WITH SIGNIFICANT INTERMITTENT GENERATION - ARF

Cite this