Economic Optimization of Overload Peak Reduction Using Demand Response Method Considering Cable Lifespan in Distribution Networks

The equipment used in power distribution networks can tolerate a 25% overload. This feature is utilized in Iran's distribution networks, where during peak load periods, the network experiences overloading. The occurrence of overload in the power network leads to consequences such as increased temperature, reduced lifespan, and a higher failure rate of equipment, which in turn results in an increase in power outages in the distribution network. This paper consists of three main sections: first, modeling the impact of overload on the lifespan of cables and calculating the associated damages in the distribution network; second, modeling the impact of overload on increasing the number of outages and calculating the resulting damages; third, determining the optimal economic program for Demand Response (DR) methods for peak shaving, under two different approaches. A case study based on data from the Tehran Power Distribution System for the year 2018 has been conducted. The results of the modeling and optimization analyses show that reducing overload can lead to an increase in the lifespan of the distribution company's cables. Additionally, the hidden costs of power outages in the distribution network could make Demand Response methods effective in partially reducing the costs associated with distribution network outages.