TY - JOUR
T1 - Trade-off between UoS charge and investment cost for new distribution network users
AU - Gu, Chenghong
AU - Yuan, Yue
PY - 2015/1
Y1 - 2015/1
N2 - This letter investigates the situation that high use-of-system charge (UoSC) might appear for new network users and studies the potential of network investment to avoid the high charge. It proposes a method to strike the trade-off between UoSC and investment cost, in the form of connection charge (CC). It determines the utilization level where UoSC and CC reach equilibrium. Beyond this level, it is more economical to conduct network investment for new users to avoid high UoSC. The trade-off between the two type charges provides effective signals for new network users to manage their connecting size and location. The concept is illustrated on a two-busbar system.
AB - This letter investigates the situation that high use-of-system charge (UoSC) might appear for new network users and studies the potential of network investment to avoid the high charge. It proposes a method to strike the trade-off between UoSC and investment cost, in the form of connection charge (CC). It determines the utilization level where UoSC and CC reach equilibrium. Beyond this level, it is more economical to conduct network investment for new users to avoid high UoSC. The trade-off between the two type charges provides effective signals for new network users to manage their connecting size and location. The concept is illustrated on a two-busbar system.
KW - Connection charge
KW - equilibrium
KW - investment
KW - long-run incremental cost
KW - tradeoff
KW - use of system charge
UR - http://www.scopus.com/inward/record.url?scp=84919912625&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1109/TPWRS.2014.2321993
U2 - 10.1109/TPWRS.2014.2321993
DO - 10.1109/TPWRS.2014.2321993
M3 - Article
AN - SCOPUS:84919912625
SN - 0885-8950
VL - 30
SP - 542
EP - 543
JO - IEEE Transactions on Power Systems
JF - IEEE Transactions on Power Systems
IS - 1
ER -