Network pricing for smart grids considering customers' diversified contribution to system

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This paper proposes a modified long-run incremental cost pricing (LRIC) method for distribution network pricing considering the diversified contributions of network users to system peak. The Shapley-value method and modified coincident factor method are used to determine network users' various contributions to the system. The comparison between original LRIC and the modified LRIC indicates the positive correlation between the contribution to system peak and network charges for different network users. This paper also explores the potential users' behavior change to gain bill reductions according to the cooperative-game theory and the consequential network investment deferral.

Original languageEnglish
Title of host publication14th International Conference on the European Energy Market (EEM), 2017
ISBN (Electronic)9781509054992
Publication statusPublished - 14 Jul 2017
Event14th International Conference on the European Energy Market, EEM 2017 - Dresden, Germany
Duration: 6 Jun 20179 Jun 2017


Conference14th International Conference on the European Energy Market, EEM 2017
Abbreviated titleEEM 2017



  • Coincident factor
  • Contributions
  • Long-run-incremental-cost pricing
  • Network pricing
  • Shapley value

ASJC Scopus subject areas

  • Marketing
  • Energy Engineering and Power Technology
  • Fuel Technology

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