Transmission Pricing Dynamically Integrated with Distribution Planning

Modern electrical networks with automatic control devices and with models that look for minimizing their costs will naturally increase the loading on buses with lower tariffs. We can identify two factors that are contributing to accelerate the network modernization. Firstly, the global targets to reduce the emission of polluting gases, which are boosting the transport electrification, a highly dynamic element. Secondly, the greater participation of clients in decision-making processes due to advances in means of measurement and communication. In this context, the article brings two innovative and direct contributions. The integration of transmission and distribution segments in a unique set of simulation, and the proposal of a novel transmission cost allocation (TCA) methodology. The integration between both segments confirms that loads responsive to tariff signals will seek buses with lower tariffs. The results show that traditional TCA methods do not respond to load variations in a coordinated manner. Therefore, the main contribution of the proposed methodology is to capture the consumption dynamics and make tariff adjustments proportional to the load variations. It preserves the tariff characteristics of traditional TCA methods and automatically induces a dynamic tariff-load balance for the entire power system. Thus, new investments in network reinforcements can be postponed, reducing the total cost paid by users in a long-term prospect.