Optimal model for managing electricity distribution system by using the cooperative approach to unifying the ownership rights of multi-owned power distribution networks

A cooperative is defined as a user-owned and controlled business from which benefits are derived and distributed equitably on the basis of use or as a business owned and controlled by the people who use its services.As microgrids become more prevalent in meeting electricity demands, conflicts may arise between private microgrid system owners and national distribution authorities, particularly in overlapping sales areas. To address this issue, the Distribution Cooperative (DisCo-ops), a distribution system management model based on the cooperative unification of multi-owned networks into a single system, has been proposed to ensure the natural monopoly function. By implementing this model, complex wheeling charges across multi-owned grids in overlapping sales areas can be avoided, and all network users would pay a merged system charge instead.In conjunction with the proposed Distribution Cooperative model, the author provides a solution for the efficient allocation of network costs to different users, taking into account the actual usage of the network. This approach ensures that each user pays a fair share of the network costs based on their usage, and it can be used as a basis for developing a transparent and efficient pricing policy.The numerical results obtained from the proposed model show that it can effectively address the issues with traditional pricing models, such as the overlapping sales area and the complex wheeling method. Furthermore, the proposed model can be further extended to incorporate renewable energy sources and demand response programs, which can have a significant impact on the operation and planning of distribution networks.