Framework for Assessing the Economic Impacts of AC-DC Distribution Network on the Consumers

Recent developments in the power converter technology and the need for better power quality/reliability, have necessitated the integration of AC and DC grids. The realization of AC-DC distribution network has become more rational with the increase in renewable generations and DC electronic loads. There are numerous technical advantages of using DC power in conjunction with AC power in distribution systems. But for widespread utilization of AC-DC distribution network, the economic impact of aforementioned technology on the affiliated customers needs to be inspected. Distribution use of system (DUoS) charges is an eminent means for scrutinizing the economics related to an AC-DC distribution system in transferring power to its associated users. This article presents a MW+MVAr-Miles methodology for DUoS charges calculation. The proposed network pricing mechanism reward the users working at better power factors and efficiently utilizing the network, while forfeiting those who don’t. As a result, the proposed pricing model encourages users to act in a manner for the betterment of the system condition. The aforesaid analysis will enables to realize the economic benefits or detriments of an AC-DC distribution system in distributing power to customers.