Compensation Mechanism for Active Power Curtailment in LV Distribution Networks

Active power curtailment (APC) is being considered to tolerate overvoltage issues when PV installed capacity increases. The consequence is that prosumers are subjected to unwanted APC that ultimately results in less utilization of installed distributed energy resources (DERs). In this paper, a mechanism is proposed to compensate the prosumers for APC to make it a viable network service. The proposed compensation mechanism is based on the electricity price demand elasticity concept and would be more useful in countries where the electricity markets are not enough matured for providing curtailment compensations based on day-ahead market prices. The aim here is to develop a simplified method that should be simple as a fixed contract setting for compensation and have a better correlation with electricity price dynamics. To demonstrate the proposed compensation mechanism, a case study is presented, simulating a Dutch LV distribution network in MATLAB/Simulink environment. The results shared in this paper represents preliminary work, to give an insight.