Identifying the wheeling costs associated with solar sharing in LV distribution networks in Australia using power flow tracing and MW-Mile methodology

PV systems, as one type of distributed generation, have been popularly applied to residential and commercial power supply systems for compensating grid electricity consumption. Schemes for sharing PV power within LV distribution networks have also begun to develop, with the aim to more widely spread the benefits of utilizing localized renewable-generated electricity. Consequently, to utilize the local LV distribution network, there is an argument that customers (both small scale generators and consumers) should pay a 'wheeling charge' to utilities for grid services related to the transport of energy, similar to their transmission counterparts. This paper presents some of the existing issues related to implementing a 'wheeling charge' for network services raised in the process of sharing locally generated PV power in a LV distribution system. Two methodologies: 'generation matrix', based on proportional sharing principle; and 'MW-Mile', based on network losses, have been combined to cover the economic operation and tracing of energy supplied by a PV generator and transported through the local LV distribution network. An evaluation of the potential costs of using the LV distribution network including daily PV output and building load demand is provided, utilising a case study.