Long-run network charging for network security

It is important for a pricing model to reflect the costs/benefits imposed on a network when connecting a new generator or demand. Work has been done to link nodal generation/demand increment to changes in circuits´ and transformers´ investment horizon, which in turn translated into long-run costs. Network security is one of the most important cost drivers. All networks are designed to be able to withstand credible contingencies, but this comes to a significant cost to network development. This paper proposed a new methodology to establish the link between network security and investment cost. Through N-l contingency analysis, the new methodology defies maximum allowed power flow along each circuit or the effective spare capacity, which will be used to determine the new time horizon of future investment.