Comprehensive Long - Run Incremental Cost ( LRIC ) - Voltage Network Pricing Approach to Support Network Voltages Given Contingencies

most network charges are based on components’ thermal limits providing correct economic signals to reinforcing network transformers and lines. However, less attention is drawn to the reinforcement cost driven by nodal voltage limits, particularly those resulting from contingencies. In this work, a new charging approach is proposed in which busbar power perturbation is linked to busbar voltage degradation rate which, in turn, is related to the incremental investment cost required to maintain voltage levels. The incremental cost results by employing the use of the nodal voltage spare capacity to gauge the time to invest in a reactive power compensation device for a defined load growth rate. The time to invest takes into account the network nodal voltage profiles under N-1 circuit contingencies (one line outage at a time). Further, the nodal MW and MVAr perturbations are considered in this paper. This novel approach is demonstrated on the IEEE 14 bus network, illustrating the difference in charges when considering contingencies, therefore, providing correct forward-looking economic signals to potential network users. In turn, this will help them make informed decisions as to whether to invest in reactive power compensation assets or pay the network operators for reactive power provision. Most importantly, this new approach outperforms the currently used power factor (pf) penalty.