Long-run marginal cost pricing based on network spare capacity


Li, F.-R., 2007. Long-run marginal cost pricing based on network spare capacity. Power Systems, IEEE Transactions on, 22 (2), pp. 885-886.

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    This paper proposes a novel approach for providing long-run marginal cost (LRMC) pricing in network charges. The proposed approach makes use of the unused capacity of an exiting network to reflect the cost of advancing or deferring future investment consequent upon the perturbation of generation or load at each study node on a distribution or transmission network. Compared with existing approaches to LRMC pricing, the proposed approach produces forward-looking charges that reflect both the extent of the network needed to service the generation and/or load, and the degree to which that network is utilized


    Item Type Articles
    CreatorsLi, F.-R.
    Uncontrolled Keywordspricing,power system economics,equilibrium,network spare capacity,generation perturbation,long-run marginal cost pricing,investment,network charges,load perturbation,forward-looking charges
    DepartmentsFaculty of Engineering & Design > Electronic & Electrical Engineering
    Publisher Statementli_f_IEEE_Power_Sys_07.pdf: ©2007 IEEE. Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works must be obtained from the IEEE.
    ID Code5718


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