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Incentive from network regulation for distribution system operators to integrate distributed generation: The Portuguese case
KTH, School of Electrical Engineering (EES), Electric Power Systems.
KTH, School of Electrical Engineering (EES), Electric Power Systems.
KTH, School of Electrical Engineering (EES), Electric Power Systems.ORCID iD: 0000-0002-8189-2420
2013 (English)In: European Energy Market (EEM), 2013 10th International Conference on the, IEEE , 2013, 6607376- p.Conference paper, Published paper (Refereed)
Abstract [en]

Increasing amount of distributed generation (DG) connected to distribution grids is likely to affect the operation of the grids themselves, for example by changing the magnitude and, in some cases also the directions, of the power flows in the networks. This can have different economic consequences on the Distribution System Operators (DSOs) depending on the different enforced network regulations. This paper proposes a method for how to calculate the incentive for DSOs to integrate DG into their grids. The calculation of this incentive is carried out for the Portuguese case. Only the operational aspects are considered to calculate costs and benefits for the DSO, including network tariffs, ancillary services costs, Operation and Maintenance (O&M) costs, and economic treatment of losses. The IEEE 34 Node Test Feeder is used to perform power flow analyses under different scenarios of DG penetration. The analysis shows that the Portuguese DSO would have an incentive to integrate a low level of DG penetration; in case of a higher level of DG penetration, however, this incentive would turn into a small disadvantage for the DSO. In both cases, the regulatory treatment of network losses turns out to be the relevant factor to determine such a result.

Place, publisher, year, edition, pages
IEEE , 2013. 6607376- p.
Series
International Conference on the European Energy Market, EEM, ISSN 2165-4077
Keyword [en]
distributed generation, distribution losses, network regulation, Portuguese regulation, tariffs
National Category
Energy Systems
Identifiers
URN: urn:nbn:se:kth:diva-140995DOI: 10.1109/EEM.2013.6607376Scopus ID: 2-s2.0-84891605925ISBN: 978-147992008-2 (print)OAI: oai:DiVA.org:kth-140995DiVA: diva2:693779
Conference
10th International Conference on the European Energy Market, EEM 2013; Stockholm; Sweden; 27 May 2013 through 31 May 2013
Note

QC 20140205

Available from: 2014-02-05 Created: 2014-02-05 Last updated: 2015-10-09Bibliographically approved
In thesis
1. Impact of Economic Regulation on Distributed Generation Integration in Electricity Distribution Grids
Open this publication in new window or tab >>Impact of Economic Regulation on Distributed Generation Integration in Electricity Distribution Grids
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Energy policies in favor of a larger adoption of renewable energy sources for electricity production purposes and the significant progress of several renewable technologies are among the main drivers behind an increasing integration of distributed generation (DG) in distribution networks.

DG affects distribution network planning and operation and, consequently, higher or lower network costs than in a traditional passive network scenario arise.

Two main complementary tools for an efficient integration of DG have been identified in this thesis: (i) a sound economic regulation of Distribution System Operators (DSOs) for taking into account DG-driven potential costs and accordingly remunerating DSOs, and (ii) network tariff design, in order to allocate network costs and re-distribute potential benefits to different grid users.

Distribution economic regulations vary from country to country with grid characteristics and regulatory customs. In order for Regulators to promote the integration of DG units according to policy objectives, the potential impact of DG on the different distribution costs needs to be analyzed and quantitatively assessed: in this thesis, these objectives are achieved by using a novel model that combines the technical characteristics of distribution grids with the regulatory details specific of each regulation.

Once computed, DSOs' total allowed revenue is allocated to different users' categories according to the adopted tariff structures. This thesis focuses on the challenges arising within the traditional paradigm of distribution tariff design when an increasing amount of DG is connected to the grids. In particular, the consequences of DG exemption from distribution tariffs and the application of load-tailored tariff schemes to DG are investigated, both from a qualitative and quantitative point of view; cross subsidies between consumers and DG owners are computed by applying a cost causality principle.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2015. xi, 90 p.
Series
TRITA-EE, ISSN 1653-5146 ; 2015:75
Keyword
Distributed generation, distribution economic regulation, regulatory impact, distribution tariff design, cost allocation methodologies, cross subsidies
National Category
Engineering and Technology
Research subject
Electrical Engineering
Identifiers
urn:nbn:se:kth:diva-174342 (URN)978-91-7595-715-9 (ISBN)
Public defence
2015-11-02, F3, Lindstedtsvägen 26, KTH, Stockholm, 10:00 (English)
Opponent
Supervisors
Note

The Doctoral Degrees issued upon completion of the programme are issued by Comillas Pontifical University, Delft University of Technology and KTH Royal Institute of Technology. The invested degrees are official in Spain, the Netherlands and Sweden, respectively. QC 20151009

Available from: 2015-10-09 Created: 2015-10-05 Last updated: 2015-10-09Bibliographically approved

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