The increasing number of distributed and renewable generation installations has begun to affect the way bulk power systems are operated and planned. Besides energy adequacy and capacity planning, environmental aspects and economic considerations, distributed and renewable generation programs that consider the effect on the security of the transmission system are likely to increase long-term benefits. In particular, distributed generation has the potential to significantly enhance grid security if new projects are strategically located to decrease transmission flows, and reduce congestion. This paper presents a policy model capable of measuring the effect of renewable and distributed generation on grid security. The model consists of four components: a) calculation of security metrics, b) identification of beneficial locations for security, c) determination of security benefits, and d) integration with policy analysis. The method is illustrated in a sample high voltage power system.
