Optimal Strategy for Grid Loss Reduction Under Electricity Transmission and Distribution Reform Considering Low-Carbon Benefits

Selecting grid loss reduction strategies is crucial for energy-saving transformations, particularly in the context of electricity transmission and distribution pricing reforms. The optimization of strategic selection is not easy due to the vast number of grid devices, which leads to a multitude of possible strategy combinations. This paper presents an optimal model for selecting loss reduction strategies, aiming to minimize the sum of comprehensive investment costs and energy loss costs over the life cycle of the strategies. The energy loss costs include both direct expenses due to energy loss and indirect costs, namely, carbon emission penalties. The constraints include allowable voltage deviations, branch power transmission, the number of loss reduction measures, loss rates, and total investment limits. The model comprehensively considers both economic benefits and the social benefits of reduced carbon emissions. It can help companies better adapt to electricity transmission and distribution pricing reforms, reduce operational costs, and contribute to low-carbon development. Finally, the model is validated using the data provided by one provincial power grid company in China. The results show that the loss reduction reaches 13.9 MW and the reduced carbon emission per hour is 10.425 t. The proposed method is also compared with the enumeration method, which demonstrates its effectiveness and efficiency. Further research will be conducted on establishing functional relationships between electricity sales prices and line losses to incentivize companies to apply loss reduction measures under different pricing functions.