Evaluation of Energy Losses and Costs Based on the Location of PCC in Smart Grids

Modern smart grids are typically energized by a number of Independent Power Producers (IPPs) and transmission and distribution loads at various locations. The IPPs are connected to the grid through a Point of Common Coupling (PCC). The distances between IPP to the PCC and PCC to the grid are often ignored in risk assessment. Financial costs involve several parameters such market models, cash flow structures, energy flows and losses. Such parameters are dependent on distances involved. This paper proposes a typical 3-stage framework for the determination of losses and costs based on PCC location. Details of the proposed framework, assumptions made and parameters required such a study are illustrated. Proposed framework is applied to the standard IEEE 9 and 14 bus systems to illustrate its effectiveness in risk assessment.