Allocation of Fixed Costs Considering Distributed Generation and Distinct Approaches of Demand Response Remuneration in Distribution Networks

Abstract

In the present context the distribution networks are characterized by the increasing penetration of Distributed Generation (DG) resources, which imposes important changes in operation practice. Moreover, the concept of Demand Response (DR) is currently a very important resource. The present paper proposes a methodology that makes possible the allocation of fixed costs in distribution networks considering the integration of DG and DR resources. It considers several possibilities for consumers DR remuneration. The fixed cost allocation is determined in three phases – DC Optimal Power Flow (DCOPF), Kirschen's tracing method, and MW-mile method. The presented case study contemplates a distribution network with 49 buses, 47 DG units, 4 external suppliers and 50 consumers.