Assessing the Impact of Distributed Generation on Distribution Network Costs

The support of electricity generation from renewable energy sources (RES) and combined heat and power (CHP) has led to increasing penetration levels of distributed generation (DG). Nevertheless, Large-scale connection of DG faces numerous regulatory, economic, social and technological challenges. Distribution networks were not originally designed to accommodate generation. Hence, distribution system operators (DSOs) face great uncertainties about the impacts of DG on distribution network planning and operation. This paper presents a quantification of how DG affects distribution network costs in three real distribution areas. Several scenarios of demand and DG have been analysed for each case study. Two reference network models (RNMs) have been used to consider the most critical snapshots within each scenario: maximum demand-minimum generation and maximum generation-minimum demand. Results yielded significant differences among the three case studies.