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This paper develops a novel transmission charging method based on long-run incremental cost (LRIC) pricing. It is able to recognize the trade-offs between short-run congestion cost and future investment cost. Innovatively, it can differentiate the impact of demand and generation technologies on advancing or deferring network investment. An incremental capacity change from a network user influences...
This paper seeks to measure the long-term benefits brought by the interruptible load scheme (ILS) to network utilities and customers. Normally, the ILS is adopted as necessary to reduce system peak demand. By contrast, this paper states that if the scheme is adopted during network contingencies that drive future reinforcement, great benefits might be obtained. It assumes that the long-term benefits...
Incremental and marginal approaches are two different types of methods to price the use of networks. The major difference between them is in the way they evaluate the costs imposed by network users. The former calculates network charges through simulation and the latter derives charges with a sensitivity-based analytical approach. Both charging models aim to send cost-reflective economic signals to...
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