Energy Conversion and Economics最新文献

{"title":"Robust uncertainty mitigation for multiple microgrids based on online response strategy of energy storage systems","authors":"Yingjie Tan,&nbsp;Hao Bai,&nbsp;Hengxi Liu,&nbsp;Tong Liu,&nbsp;Yipeng Liu,&nbsp;Zuogang Guo","doi":"10.1049/enc2.70031","DOIUrl":"https://doi.org/10.1049/enc2.70031","url":null,"abstract":"<p>The high penetration of renewable energy sources introduces uncertainty, posing significant challenges to the secure operation of multiple microgrids interconnected through lower voltage flexible interconnection devices. To address power and voltage fluctuations caused by these uncertainties, this paper proposes a robust optimisation method for multiple microgrids based on a novel online energy storage system (ESS) response strategy. First, a synthetic energy management model is constructed to facilitate the coordinated scheduling of various distributed energy resources within the system. Next, inspired by the mechanisms of automatic generation control, a novel online ESS response strategy is designed to enable ESSs to participate in both day-ahead economic scheduling and real-time uncertainty mitigation. Building on this, a robust optimisation model for multiple microgrids is established and reformulated into a solvable form based on duality theory. Finally, case studies conducted on a physical multiple microgrid system validate the effectiveness of the proposed method. The results demonstrate that the method effectively mitigates uncertainties and maintains voltage security, ensuring efficient and reliable operation of microgrids.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"4-16"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70031","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147563201","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Robust optimal operating strategy for photovoltaic-storage-load virtual power plant considering dual uncertainties of photovoltaic output and electricity prices","authors":"Xinyi Zhu,&nbsp;Sheng Zhou,&nbsp;Fucong Xu,&nbsp;Yuge Chen,&nbsp;Hongfei Yu,&nbsp;Xueyuan Cui,&nbsp;Jiajia Yang,&nbsp;Zhicheng Li,&nbsp;Li Yang,&nbsp;Zhenzhi Lin","doi":"10.1049/enc2.70034","DOIUrl":"https://doi.org/10.1049/enc2.70034","url":null,"abstract":"<p>The widespread integration of photovoltaic (PV) power, energy storage systems, and other demand-side resources highlights the importance of optimal dispatching for the PV-storage-load virtual power plant (VPP). However, the fluctuation of the PV power generation and the uncertainty of the electricity prices exacerbate the economic operation risks of the VPP. To address these challenges, an optimal dispatching strategy for the PV-storage-load VPP is proposed, with due consideration given to the dual uncertainties of electricity prices and PV power output. Firstly, the conditional value-at-risk theory is employed to quantify the uncertainty risk of VPP revenue caused by electricity price fluctuations. Secondly, in view of the asymmetric fluctuation intervals of PV power output, a quantification method for PV uncertainty and dispatch robustness is developed using the confidence gap decision theory. Furthermore, by combining the regulation reserve model of multi-type flexible resources, a robust optimization model for the PV-storage-load VPP is constructed with the objective of maximizing comprehensive operational revenue, which includes the provision of upward and downward reserve services. Finally, case studies based on a PV-storage-load VPP in a Chinese province are conducted to validate the effectiveness and superiority of the proposed model. The simulation results indicate that the proposed robust optimization strategy effectively reflects the relationship between the uncertainty of PV power output and the risk preference of decision-maker, mitigates the fluctuation risks of electricity prices to ensure the stability of the power system, and enhances the economic efficiency and flexibility of the PV-storage-load VPP operation.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"17-36"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70034","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565285","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Reliability assessment of cyber physical distribution systems including sequential scenario simulation correction and recovery resource decisions","authors":"Wei Wu,&nbsp;Chengfu Wang,&nbsp;Yong Wang,&nbsp;Xiaoming Dong,&nbsp;Ming Yang,&nbsp;Yumin Zhang,&nbsp;Edris Pouresmaeil,&nbsp;Shimin Zhong,&nbsp;Shengqi Zhou,&nbsp;Xueshan Han","doi":"10.1049/enc2.70033","DOIUrl":"https://doi.org/10.1049/enc2.70033","url":null,"abstract":"<p>With the deepening of research on smart grids, the distribution system has gradually evolved into a cyber-physical distribution system (CPDS). The refined reliability modelling and assessment methods for CPDS are of great significance. This paper proposes an integrated reliability assessment framework combining distribution information system (DIS) performance analysis with sequential scenario correction. A DIS model is established. By mapping the performance of DIS fault location and isolation to the operational scenarios of the power distribution system (PDS), the impact of DIS performance on the interruption time of PDS can be quantified. A physical operational scenario simulation and correction method is proposed, which uses the quantified interruption time due to DIS impacts for the correction of PDS operational scenarios. Based on the topology, the distribution system is divided into regions, and an optimal decision model for recovery resources is designed and used to calculate reliability indicators. The improved CPDS reliability assessment results of the IEEE RTS BUS6 F4 bus system are presented and analysed, and the key factors affecting the reliability of CPDS are identified and discussed.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"37-49"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70033","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565282","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Diagnostic analytics of electricity tariff design in Nepal","authors":"Prashant Kandel,&nbsp;Kamal Chapagain,&nbsp;Sambeet Mishra","doi":"10.1049/enc2.70030","DOIUrl":"https://doi.org/10.1049/enc2.70030","url":null,"abstract":"<p>Nepal's electricity sector operates under a monopsony, with government entities dominating generation, transmission, and distribution. This market structure suppresses competition, leading to inherent challenges in establishing fair and efficient electricity tariff systems. This study aims to address these inefficiencies by diagnosing the existing tariff structure and proposing restructured time-of-use (TOU) models. A key constraint of the proposal is ensuring revenue neutrality for the utility. The research employs a dual-method approach. First, it models locational marginal pricing (LMP) across six load buses in power world simulator, integrating a 144 MW generator and categorizing demand into residential, industrial, commercial, non-commercial, and other loads. Second, it analyzes daily load profiles from Ghusel village to design optimal TOU tariff models for residential consumers. The LMP modeling revealed significant locational price variations, highlighting congestion and inefficiencies in the current system. Furthermore, introducing distributed generation reduced the LMP for residential consumers by 12.15% compared to base case scenarios. The analysis of load profiles led to the selection of a four-period TOU structure (morning peak, evening peak, normal, and off-peak) as the most effective. Specific tariffs—a demand charge of 60 Nepalese Rupee (NPR)/kW and energy rates of NPR 9.49, 12.55, 6.78, and 4.07, respectively—were found to improve peak load shifting, revenue collection, and consumer fairness. The study demonstrates the strong potential of LMP and structured TOU tariffs to enhance grid reliability, sustainability, and fairness in Nepal. However, successful implementation requires overcoming practical obstacles such as cross-subsidies, regulatory inflexibility, and inadequate metering. Therefore, this study recommends a gradual policy strategy involving pilot initiatives, regulatory reforms, and consumer awareness campaigns.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"50-68"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70030","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147563202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Planning, operation and control of flexible distribution networks","authors":"Shenxi Zhang,&nbsp;Yichen Shen,&nbsp;Peng Li,&nbsp;Yue Zhou,&nbsp;Yue Xiang,&nbsp;Haozhong Cheng,&nbsp;Pengfei Zhao","doi":"10.1049/enc2.70032","DOIUrl":"https://doi.org/10.1049/enc2.70032","url":null,"abstract":"&lt;p&gt;Distribution networks are undergoing a rapid transition driven by high penetrations of distributed energy resources, fast growing power electronic devices and diversified load categories. This transition introduces stronger uncertainty and converter dominated dynamics, while proliferating diverse flexibility resources whose availability is highly time varying and constraint coupled. Therefore, flexible distribution networks (FDNs) must be planned, operated, and controlled in an integrated manner to translate flexibility into guaranteed network level benefits. This special issue focuses on the planning, operation and control of FDNs, aiming to highlight emerging methods for flexibility aware planning, multi-source coordination, incentive-compatible market and control mechanisms that deliver network wide improvements. This special issue has been the focus of considerable interest. The four papers selected for publication in this issue are briefly introduced as follows.&lt;/p&gt;&lt;p&gt;In ‘Diagnostic analytics of electricity tariff design in Nepal [&lt;span&gt;1&lt;/span&gt;]’, Kandel et al. examine tariff reform under Nepal's monopsony electricity market and diagnose inefficiencies in existing pricing structures that suppress flexibility on both the demand and supply sides. The authors combine locational marginal pricing simulations across multiple load buses with revenue neutral time-of-use (TOU) redesign based on measured daily load profiles. The results reveal pronounced locational price variations and show that integrating distributed generation can lower residential prices while strengthening operational flexibility. Moreover, the four period TOU structure is identified as the most effective for peak shifting, together with an implementable roadmap that acknowledges metering and regulatory constraints.&lt;/p&gt;&lt;p&gt;In ‘Performance analysis of DC microgrids with output resistance shaping in presence of constant power loads [&lt;span&gt;2&lt;/span&gt;]’, Prajapati et al. investigate flexibility-oriented stability and power sharing challenges introduced by constant power loads in droop-controlled DC microgrids. They propose a virtual output resistance (VOR) to offer dynamic flexibility. Then, adjusted with converter, the VOR is applied to improve damping while maintaining acceptable voltage profiles. Using both small signal analysis and an impedance based minor loop gain criterion, the paper derives feasible ranges of the virtual resistance for several droop variants, and notes that the minor loop gain design yields virtual output resistance values closer to stability boundaries observed in simulations. The results indicate that resistance shaping yields a consistent flexibility in current/power sharing, while its advantage becomes especially pronounced during plug-and-play transients and in meshed interconnections where coupling is stronger. Controller hardware-in-the-loop tests reproduce the same qualitative trends, indicating that the method remains effective when realistic delays","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"1-3"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70032","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Planning, operation and control of flexible distribution networks","authors":"Shenxi Zhang,&nbsp;Yichen Shen,&nbsp;Peng Li,&nbsp;Yue Zhou,&nbsp;Yue Xiang,&nbsp;Haozhong Cheng,&nbsp;Pengfei Zhao","doi":"10.1049/enc2.70032","DOIUrl":"https://doi.org/10.1049/enc2.70032","url":null,"abstract":"&lt;p&gt;Distribution networks are undergoing a rapid transition driven by high penetrations of distributed energy resources, fast growing power electronic devices and diversified load categories. This transition introduces stronger uncertainty and converter dominated dynamics, while proliferating diverse flexibility resources whose availability is highly time varying and constraint coupled. Therefore, flexible distribution networks (FDNs) must be planned, operated, and controlled in an integrated manner to translate flexibility into guaranteed network level benefits. This special issue focuses on the planning, operation and control of FDNs, aiming to highlight emerging methods for flexibility aware planning, multi-source coordination, incentive-compatible market and control mechanisms that deliver network wide improvements. This special issue has been the focus of considerable interest. The four papers selected for publication in this issue are briefly introduced as follows.&lt;/p&gt;&lt;p&gt;In ‘Diagnostic analytics of electricity tariff design in Nepal [&lt;span&gt;1&lt;/span&gt;]’, Kandel et al. examine tariff reform under Nepal's monopsony electricity market and diagnose inefficiencies in existing pricing structures that suppress flexibility on both the demand and supply sides. The authors combine locational marginal pricing simulations across multiple load buses with revenue neutral time-of-use (TOU) redesign based on measured daily load profiles. The results reveal pronounced locational price variations and show that integrating distributed generation can lower residential prices while strengthening operational flexibility. Moreover, the four period TOU structure is identified as the most effective for peak shifting, together with an implementable roadmap that acknowledges metering and regulatory constraints.&lt;/p&gt;&lt;p&gt;In ‘Performance analysis of DC microgrids with output resistance shaping in presence of constant power loads [&lt;span&gt;2&lt;/span&gt;]’, Prajapati et al. investigate flexibility-oriented stability and power sharing challenges introduced by constant power loads in droop-controlled DC microgrids. They propose a virtual output resistance (VOR) to offer dynamic flexibility. Then, adjusted with converter, the VOR is applied to improve damping while maintaining acceptable voltage profiles. Using both small signal analysis and an impedance based minor loop gain criterion, the paper derives feasible ranges of the virtual resistance for several droop variants, and notes that the minor loop gain design yields virtual output resistance values closer to stability boundaries observed in simulations. The results indicate that resistance shaping yields a consistent flexibility in current/power sharing, while its advantage becomes especially pronounced during plug-and-play transients and in meshed interconnections where coupling is stronger. Controller hardware-in-the-loop tests reproduce the same qualitative trends, indicating that the method remains effective when realistic delays","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"1-3"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70032","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565392","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Reliability assessment of cyber physical distribution systems including sequential scenario simulation correction and recovery resource decisions","authors":"Wei Wu,&nbsp;Chengfu Wang,&nbsp;Yong Wang,&nbsp;Xiaoming Dong,&nbsp;Ming Yang,&nbsp;Yumin Zhang,&nbsp;Edris Pouresmaeil,&nbsp;Shimin Zhong,&nbsp;Shengqi Zhou,&nbsp;Xueshan Han","doi":"10.1049/enc2.70033","DOIUrl":"https://doi.org/10.1049/enc2.70033","url":null,"abstract":"<p>With the deepening of research on smart grids, the distribution system has gradually evolved into a cyber-physical distribution system (CPDS). The refined reliability modelling and assessment methods for CPDS are of great significance. This paper proposes an integrated reliability assessment framework combining distribution information system (DIS) performance analysis with sequential scenario correction. A DIS model is established. By mapping the performance of DIS fault location and isolation to the operational scenarios of the power distribution system (PDS), the impact of DIS performance on the interruption time of PDS can be quantified. A physical operational scenario simulation and correction method is proposed, which uses the quantified interruption time due to DIS impacts for the correction of PDS operational scenarios. Based on the topology, the distribution system is divided into regions, and an optimal decision model for recovery resources is designed and used to calculate reliability indicators. The improved CPDS reliability assessment results of the IEEE RTS BUS6 F4 bus system are presented and analysed, and the key factors affecting the reliability of CPDS are identified and discussed.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"37-49"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70033","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Robust optimal operating strategy for photovoltaic-storage-load virtual power plant considering dual uncertainties of photovoltaic output and electricity prices","authors":"Xinyi Zhu,&nbsp;Sheng Zhou,&nbsp;Fucong Xu,&nbsp;Yuge Chen,&nbsp;Hongfei Yu,&nbsp;Xueyuan Cui,&nbsp;Jiajia Yang,&nbsp;Zhicheng Li,&nbsp;Li Yang,&nbsp;Zhenzhi Lin","doi":"10.1049/enc2.70034","DOIUrl":"https://doi.org/10.1049/enc2.70034","url":null,"abstract":"<p>The widespread integration of photovoltaic (PV) power, energy storage systems, and other demand-side resources highlights the importance of optimal dispatching for the PV-storage-load virtual power plant (VPP). However, the fluctuation of the PV power generation and the uncertainty of the electricity prices exacerbate the economic operation risks of the VPP. To address these challenges, an optimal dispatching strategy for the PV-storage-load VPP is proposed, with due consideration given to the dual uncertainties of electricity prices and PV power output. Firstly, the conditional value-at-risk theory is employed to quantify the uncertainty risk of VPP revenue caused by electricity price fluctuations. Secondly, in view of the asymmetric fluctuation intervals of PV power output, a quantification method for PV uncertainty and dispatch robustness is developed using the confidence gap decision theory. Furthermore, by combining the regulation reserve model of multi-type flexible resources, a robust optimization model for the PV-storage-load VPP is constructed with the objective of maximizing comprehensive operational revenue, which includes the provision of upward and downward reserve services. Finally, case studies based on a PV-storage-load VPP in a Chinese province are conducted to validate the effectiveness and superiority of the proposed model. The simulation results indicate that the proposed robust optimization strategy effectively reflects the relationship between the uncertainty of PV power output and the risk preference of decision-maker, mitigates the fluctuation risks of electricity prices to ensure the stability of the power system, and enhances the economic efficiency and flexibility of the PV-storage-load VPP operation.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"17-36"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70034","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147565286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Robust uncertainty mitigation for multiple microgrids based on online response strategy of energy storage systems","authors":"Yingjie Tan,&nbsp;Hao Bai,&nbsp;Hengxi Liu,&nbsp;Tong Liu,&nbsp;Yipeng Liu,&nbsp;Zuogang Guo","doi":"10.1049/enc2.70031","DOIUrl":"https://doi.org/10.1049/enc2.70031","url":null,"abstract":"<p>The high penetration of renewable energy sources introduces uncertainty, posing significant challenges to the secure operation of multiple microgrids interconnected through lower voltage flexible interconnection devices. To address power and voltage fluctuations caused by these uncertainties, this paper proposes a robust optimisation method for multiple microgrids based on a novel online energy storage system (ESS) response strategy. First, a synthetic energy management model is constructed to facilitate the coordinated scheduling of various distributed energy resources within the system. Next, inspired by the mechanisms of automatic generation control, a novel online ESS response strategy is designed to enable ESSs to participate in both day-ahead economic scheduling and real-time uncertainty mitigation. Building on this, a robust optimisation model for multiple microgrids is established and reformulated into a solvable form based on duality theory. Finally, case studies conducted on a physical multiple microgrid system validate the effectiveness of the proposed method. The results demonstrate that the method effectively mitigates uncertainties and maintains voltage security, ensuring efficient and reliable operation of microgrids.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"4-16"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70031","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147563203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Diagnostic analytics of electricity tariff design in Nepal","authors":"Prashant Kandel,&nbsp;Kamal Chapagain,&nbsp;Sambeet Mishra","doi":"10.1049/enc2.70030","DOIUrl":"https://doi.org/10.1049/enc2.70030","url":null,"abstract":"<p>Nepal's electricity sector operates under a monopsony, with government entities dominating generation, transmission, and distribution. This market structure suppresses competition, leading to inherent challenges in establishing fair and efficient electricity tariff systems. This study aims to address these inefficiencies by diagnosing the existing tariff structure and proposing restructured time-of-use (TOU) models. A key constraint of the proposal is ensuring revenue neutrality for the utility. The research employs a dual-method approach. First, it models locational marginal pricing (LMP) across six load buses in power world simulator, integrating a 144 MW generator and categorizing demand into residential, industrial, commercial, non-commercial, and other loads. Second, it analyzes daily load profiles from Ghusel village to design optimal TOU tariff models for residential consumers. The LMP modeling revealed significant locational price variations, highlighting congestion and inefficiencies in the current system. Furthermore, introducing distributed generation reduced the LMP for residential consumers by 12.15% compared to base case scenarios. The analysis of load profiles led to the selection of a four-period TOU structure (morning peak, evening peak, normal, and off-peak) as the most effective. Specific tariffs—a demand charge of 60 Nepalese Rupee (NPR)/kW and energy rates of NPR 9.49, 12.55, 6.78, and 4.07, respectively—were found to improve peak load shifting, revenue collection, and consumer fairness. The study demonstrates the strong potential of LMP and structured TOU tariffs to enhance grid reliability, sustainability, and fairness in Nepal. However, successful implementation requires overcoming practical obstacles such as cross-subsidies, regulatory inflexibility, and inadequate metering. Therefore, this study recommends a gradual policy strategy involving pilot initiatives, regulatory reforms, and consumer awareness campaigns.</p>","PeriodicalId":100467,"journal":{"name":"Energy Conversion and Economics","volume":"7 1","pages":"50-68"},"PeriodicalIF":0.0,"publicationDate":"2026-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ietresearch.onlinelibrary.wiley.com/doi/epdf/10.1049/enc2.70030","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147563221","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}