MW+MVAr-miles based distribution charging methodology

This paper describes the principle and implementation of a new MW+MVAr-miles based charging methodology for pricing distribution networks. The charging methodology was developed with an aim of reflecting the true cost and benefit of network users, especially embedded generators (EGs). The proposed charging methodology respects the cost to a network due to both real and reactive power, i.e. power factor of network users. In addition, the charging model can differentiate directions of real and reactive power flow of a network user, for example, wind generation provides real power and absorbs reactive power. This differentiation allows the cost and benefit to the network of a network user being properly accounted for. The charging method is demonstrated on an two-busbar system, derived from a practical distribution network. Its effectiveness is demonstrated through the comparison with MW-mile and MVA-mile charging methodologies