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Options for allocating and releasing distribution system capacity: Deciding between interruptible connections and firm DG connections

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  • Anaya, Karim L.
  • Pollitt, Michael G.

Abstract

The aim of this study is to quantify the trade-off between selecting a distributed generation (DG) smarter connection with limited export capacity and a more expensive firm DG connection with a guarantee of full export capacity. The study is part of the analysis of a customer funded network innovation project in the UK. A cost-benefit analysis of the different connection options for connecting DG customers in a specific constrained area in the UK is performed. The study not only requires the identification of the main cost drivers and revenues (including embedded benefits and those allowed by regulation) for getting a new DG connection but also illustrates the interaction (operational and contractual) between the different parties involved (generators, distribution network operators, electricity suppliers, and demand). This study provides empirical evidence, under a number of scenarios, of the potential savings when a smart connection option is available. The results suggest that in general small wind DG customers will always have an advantage in selecting a smarter connection over large ones. We also examine the type of connection that would be preferred by solar PV DG customers and Anaerobic Digestion (AD) DG customers. The study shows that lower curtailment levels tend to substantially reduce the value of firm connections.

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  • Anaya, Karim L. & Pollitt, Michael G., 2015. "Options for allocating and releasing distribution system capacity: Deciding between interruptible connections and firm DG connections," Applied Energy, Elsevier, vol. 144(C), pages 96-105.
    • Handle: RePEc:eee:appene:v:144:y:2015:i:c:p:96-105
    DOI: 10.1016/j.apenergy.2015.01.043
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    1. Leonardo Meeus & Marcelo Saguan & Jean-Michel Glachant & Ronnie Belmans, 2010. "Smart Regulation for Smart Grids," RSCAS Working Papers 2010/45, European University Institute.
    2. Niemi, R. & Lund, P.D., 2010. "Decentralized electricity system sizing and placement in distribution networks," Applied Energy, Elsevier, vol. 87(6), pages 1865-1869, June.
    3. Kane, Laura & Ault, Graham, 2014. "A review and analysis of renewable energy curtailment schemes and Principles of Access: Transitioning towards business as usual," Energy Policy, Elsevier, vol. 72(C), pages 67-77.
    4. Passey, Robert & Spooner, Ted & MacGill, Iain & Watt, Muriel & Syngellakis, Katerina, 2011. "The potential impacts of grid-connected distributed generation and how to address them: A review of technical and non-technical factors," Energy Policy, Elsevier, vol. 39(10), pages 6280-6290, October.
    5. Anaya, Karim L. & Pollitt, Michael G., 2014. "Experience with smarter commercial arrangements for distributed wind generation," Energy Policy, Elsevier, vol. 71(C), pages 52-62.
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    Citations

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    Cited by:

    1. Newbery, D., 2017. "The economics of air pollution from fossil fuels," Cambridge Working Papers in Economics 1719, Faculty of Economics, University of Cambridge.
    2. Hadush, Samson Yemane & Meeus, Leonardo, 2018. "DSO-TSO cooperation issues and solutions for distribution grid congestion management," Energy Policy, Elsevier, vol. 120(C), pages 610-621.
    3. Palovic, Martin, 2022. "Administrative congestion management meets electricity network regulation: Aligning incentives between the renewable generators and network operator," Utilities Policy, Elsevier, vol. 79(C).
    4. Qi, Qi & Long, Chao & Wu, Jianzhong & Yu, James, 2018. "Impacts of a medium voltage direct current link on the performance of electrical distribution networks," Applied Energy, Elsevier, vol. 230(C), pages 175-188.
    5. Sun, Wei & Harrison, Gareth P., 2019. "Wind-solar complementarity and effective use of distribution network capacity," Applied Energy, Elsevier, vol. 247(C), pages 89-101.
    6. Hennig, Roman J. & de Vries, Laurens J. & Tindemans, Simon H., 2023. "Congestion management in electricity distribution networks: Smart tariffs, local markets and direct control," Utilities Policy, Elsevier, vol. 85(C).
    7. Michael G. Pollitt and Karim L. Anaya, 2016. "Can current electricity markets cope with high shares of renewables? A comparison of approaches in Germany, the UK and the State of New York," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    8. Karim Anaya & Michael Pollitt, 2021. "An evaluation of a local reactive power market: the case of Power Potential," Working Papers EPRG2124, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. Karim L. Anaya & Michael G. Pollitt, 2021. "The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries," Energies, MDPI, vol. 14(14), pages 1-25, July.
    10. Anaya, Karim L. & Pollitt, Michael G., 2022. "A social cost benefit analysis for the procurement of reactive power: The case of Power Potential," Applied Energy, Elsevier, vol. 312(C).
    11. Andoni, Merlinda & Robu, Valentin & Früh, Wolf-Gerrit & Flynn, David, 2017. "Game-theoretic modeling of curtailment rules and network investments with distributed generation," Applied Energy, Elsevier, vol. 201(C), pages 174-187.
    12. Morell-Dameto, Nicolás & Chaves-Ávila, José Pablo & Gómez San Román, Tomás & Dueñas-Martínez, Pablo & Schittekatte, Tim, 2024. "Network tariff design with flexible customers: Ex-post pricing and a local network capacity market for customer response coordination," Energy Policy, Elsevier, vol. 184(C).
    13. Anaya, Karim L. & Pollitt, Michael G., 2017. "Going smarter in the connection of distributed generation," Energy Policy, Elsevier, vol. 105(C), pages 608-617.

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