Reserve Fee Mechanism Design for Distributed Generation Users Adapting to New Power Systems

With the advancement of power supply technology and the development of diverse emerging business models, the number of users with distributed generation (DG) integrated into the main grid is steadily increasing and the scale of self-consumption from distributed generation is also steadily expanding. However, the current transmission and distribution (T&D) pricing policy has not established an equitable pricing mechanism for such users, resulting in their underpayment of system reserve charges and social responsibility fees. This leads to an unfair allocation of power system costs, which undermines the sustainable development of the new power systems. Based on the classic transmission and distribution electricity pricing theories both at home and abroad, this study designs a reserve fee mechanism that adapts to the DG development through analyzing the T&D costs that should be borne by DG users. In the short term, it rationally assigns network charges and social responsibility fees to DG beneficiary users; in the long term, it explores to design a T&D pricing mechanism based on Peak Contribution method to ensure equitable allocation of T&D costs associated with DG to the benefiting users. Finally, case studies are carried out with typical provinces.