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Design of Incentive Scheme for Reliability Improvement in Electricity Distribution Networks

Mohammadnezhad Shourkaei, Hossein | 2012

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  1. Type of Document: Ph.D. Dissertation
  2. Language: Farsi
  3. Document No: 42936 (05)
  4. University: Sharif University of Technology
  5. Department: Electrical Engineering
  6. Advisor(s): Fotuhi Firuzabad, Mahmoud
  7. Abstract:
  8. The regulation is necessary for the electric distribution networks as a natural monopoly. Regulators have been applied the Performance Based Regulation (PBR) for the control of price. The common model of PBR is price cap. Price cap creates sufficient incentive for cost efficiency. However, it decreases the service quality in distribution systems. The aim of this thesis is to design a comprehensive model for improvement of service reliability in the presence of PBR. An incentive model is developed using reward-penalty theory and yardstick theory. Reward-penalty theory is a financial approach that rewards the utility with good reliability and penalizes the utility with poor reliability. The aim of yardstick theory is to simulate the condition of competition market for utilities. In the proposed model, the reliability indices of utilities are compared with each other. The utility that performs better than other is rewarded. For simulation of competition, the clustering analysis is used and the utilities with the similar attributes will be categorized in one cluster. For each cluster, a reward-penalty scheme is designed. Two approaches for implementing the reward-penalty scheme are developed. In the first model, the reward and penalty change the electricity price. The reward increases the price and the penalty decreases the price. In the second one, the indirect reward and penalty is proposed and the electricity price is constant. In this model, the monetary value of rewards and penalties is paid to and received from utilities. In this model, the net summation of rewards and penalties is zero. At the end, a simulator is developed to simulate the behavior of utilities in the presence of proposed model. This tool helps the regulator to predict the results of reward-penalty scheme. Also, simulator can assist the utilities to optimum the reliability projects in the presence of reward-penalty scheme. This simulator is developed based on the network maintenance scheduling. The proposed approaches are examined on the Iran electricity distribution companies and the numerical results are thoroughly discussed.

  9. Keywords:
  10. Reliability ; Reward-Penalty Scheme ; Performance Based Regulations ; Electricity Distribution Network

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