Operation cost of electricity distribution

Dear all,

This is a seemingly easy question that I guess I want to complicate at my own will :slight_smile:
Most of us who run OPF probably use operation cost of electricity distribution in the objective function. Typically we use an “all-inclusive” unit cost to encompass whatever operation costs there maybe. But have you ever thought about what constitutes this operation cost, maybe from the network operator’s point of view?

I come to think that this might be an important consideration, especially if there are certain factors that influence the network operation cost from region to region. Maybe some of you who have close professional relationships with network operators can share some insights on this?

Best regards,

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Hi @buddih09  This work by @lion and others might be of interest?  R.

Ueckerdt, Falko, Lion Hirth, Gunnar Luderer, and Ottmar Edenhofer (15 December 2013). “System LCOE: what are the costs of variable renewables?”. Energy. 63: 61–75. ISSN 0360-5442. doi:10.1016/j.energy.2013.10.072.

Hirth, Lion, Falko Ueckerdt, and Ottmar Edenhofer (1 February 2015). “Integration costs revisited — An economic framework for wind and solar variability”. Renewable Energy. 74: 925–939. ISSN 0960-1481. doi:10.1016/j.renene.2014.08.065.

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Thank you Robbie. I will check it.

Competitiveness Metrics for Electricity System Technologies - National Renewable Energy Laboratory 2021 https://www.nrel.gov/docs/fy21osti/72549.pdf

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