Locational marginal capacity cost in distribution network and its application

The drawbacks of existing marginal distribution capacity cost (MDCC) are analyzed. After allocating incremental cost of branches to each node, locational marginal capacity cost (LMCC) in distribution network is proposed to reflect the forward-looking cost of distribution capacity at each node. Calculation of LMCC is not dependent on the future planning network, but based on existing unused capacity and the trend of load increment, so it has stronger measurability and higher actual application value. Moreover, application of LMCC in distribution network planning, capacity pricing, demand side management (DSM) and distributed generation (DG) injection are discussed as well.