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Evaluating the benefits of post-fault demand response - economic

In addition to the technical challenges, we needed to identify a suitable economic framework that could properly quantify the different economic benefits and costs associated with C2C.

To be consistent with existing frameworks for the assessment of distribution network solutions C2C was assessed using the CBA framework introduced by Ofgem for the new RIIO-ED1 price control. 

Working with the University of Manchester we demonstrated that C2C can be an attractive means to defer or even avoid costly line reinforcements and substation upgrades. From an economic perspective, both C2C configurations (radial or interconnected) are a better option than traditional interventions, particularly when demand growth is modest (or uncertain). Both configurations can lead to significant savings from investment avoidance or deferral. 

From a power losses perspective, the interconnected C2C configuration is an attractive option, particularly in scenarios where demand is expected to increase significantly. The primary factors that make C2C beneficial have been clearly identified, namely: reference demand level, substation capacity, DSR availability and capital investment costs. The inclusion of C2C in a DNO’s solution set will help the DNO to optimise overall costs and will consistently outperform traditional solutions. These conclusions are also valid for connection of DG in the distribution system.

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