Operating distribution grid with a large share of net metering connections, the role of renewable energies under Peer-to-Peer market operating mechanism A case study of Pakistan Distribution Network /

Abstract

The country’s regulatory authority plays an important role in encouraging distribution generation across the world. Net energy metering (NEM) has emerged as a potent regulatory instrument in this regard. Integration of solar energy through NEM helps minimize system constraints, losses, and voltage regulation. In Pakistan’s feed-in-tariff (FiT) mechanism, the prosumer’s extra exported units are only utilized, distribution company provides units back to the prosumer at off-peak hours price, which is very low. In contrast, the price of electricity is escalating, and it is amongst the core reasons for low economic growth. Therefore, the conducted research offers the techno-economic analysis of the peer-to-peer (P2P) energy market mechanism, where a prosumer can trade its extra generated units with the consumer at a price higher than FiT. The results indicate that 8.6% is a collective welfare of prosumers and consumers as compared to FiT. Moreover, the system viability is observed under 0%, 25%, and 50% PV penetration in single-phase and three-phase balanced and unbalanced scenarios. This article offers a case study of how a large share of NEM affects system losses, voltage regulation, and level of harmonic contents to suggest a win-win situation. Furthermore, environmental impacts are discussed to encourage the use of renewable resources. The proposed policy recommendations will enhance Pakistan’s socio-economic profile.