Long-run incremental cost pricing based on fault current calculation

This paper presents a long-run pricing model that reflects the cost of the use of switchgears in the network. This model focuses on reflecting circuit breakers´ upgrading cost consequent upon the perturbation of generation or load at each study bus. In this paper, the impact to the future circuit breaker reinforcement is assessed by the new connection of the embedded generator (EG) to each of the study node in the system. The new connection would bring the increase of fault current magnitude at each bus, and the magnitude of increase differs at different capacities of the EGs. Fault current growth would speed up the update requirements of the circuit breakers, and this cost is taken into account during the long-run incremental cost (LRIC) charging. Reasonable result is gained as a guide for the network company to manage the network planning.