Sensitivity analysis of long-run incremental charge based on analytical approach

The long-run incremental cost (LRIC) pricing model developed by University of Bath (U.K.) reflects the accumulated impacts to the long-term network development cost in supporting a nodal injection or withdrawal, represented as the difference in present values of future cost with and without the nodal perturbation. Those differences are generally calculated through iterative simulations. In this paper, the impact to the long-run development cost is represented through an analytical approach. The relationships between nodal injection, power flow changes along all circuits with respect to load injection, the resultant time to reinforce and final charges are analyzed based on Jacobian matrix obtained in power flow. Equations representing the sensitivities of present value of each circuit, years to reinforce and changes to years to reinforce with respect to a very small nodal increment are employed to deduce the relationships between nodal injections and nodal charges. The Resultant charges from respective simulation and sensitivity approaches are compared and contrasted for a practical system with different load injections, load growth rates, and differing loading level conditions.