The Impact of Dynamic Electricity Tariff on Long-run Incremental Cost

Yi Ding, Yang Li, Salvador Pineda, Jacob Ostergaard, Tongdan Jin

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review


Electricity plays an important role in the future energy framework around the world. The foreseen high penetration of renewable energy resources and electric vehicles (EV) will change the way of understanding and operating power systems. Consequently, significant investment in network infrastructure needs to be made in order to cope with this tremendous change in an efficient and effective manner. Long-run incremental cost (LRIC) pricing method is recognized as an economically efficient approach for pricing network charges, which provides forward-looking information for future investment cost. LRIC evaluation is usually conducted on the basis that demand is passive and uncontrollable. The impact of demand flexibility on LRIC has not been comprehensively studied. In this paper, the effect of dynamic electricity tariff and flexible demand on LRIC and network investment decisions is deeply analyzed and discussed. A modified test system (RBTS) illustrates the proposed method.
Original languageEnglish
Title of host publication2012 IEEE Power and Energy Society General Meeting
Number of pages5
Publication date2012
ISBN (Print)978-1-4673-2727-5
ISBN (Electronic) 978-1-4673-2728-2
Publication statusPublished - 2012
Event2012 IEEE Power and Energy Society General Meeting - Manchester Grand Hyatt, San Diego, United States
Duration: 22 Jul 201226 Jul 2012


Conference2012 IEEE Power and Energy Society General Meeting
LocationManchester Grand Hyatt
Country/TerritoryUnited States
CitySan Diego
Internet address


  • Educational institutions
  • Electricity
  • Investments
  • Load management
  • Power system dynamics
  • Pricing


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