Assessing the strategic benefits of distributed generation ownership for DNOs

Abstract

The potential for distributed generation (DG) to act as an alternative distribution planning option is now well-recognised by academia and industry, and could play a significant role in electricity distribution utility operation and design. However, the unbundling requirements of European Directive 2003/54/EC, coupled with traditional network planning approaches adopted by European Distribution Network Operators (DNOs), appear to be hindering development of DG and its deployment for distribution network ancillary services. This paper examines the incentives -or otherwise -that arise from alternative models of DG ownership by bundled and unbundled distribution utilities. The preference for the siting and sizing of DG installations by DNOs is simulated using a multi-year multi-period optimal power flow. Broadly based on the recent UK regulatory framework, this paper explores the DG ownership issue and its potential to influence DG penetration.

Efficient immune‐GA method for DNOs in sizing and placement of distributed generation units

“…One of the appropriate models reported in the literature is calculating the difference between total loss of the system before and after DG placement [1], [5], [14], [16], [18].…”

“…In some models [16], the DNO should pay/receive equal to the electricity price multiplied by amount of loss reduction/increase and in some models [1], [5], [14], [18] a fix incentive, i.e. ψ, is paid to DNO for each MWh reduction of active losses .…”

“…Different technical constraints can limit the connection of DG units to the distribution network. These constraints are namely, voltage profile [5], [9], [10], conductor capacity limits [5], [9]- [11] and penetration level of DG units [12] and also stability of the network [13].…”

Global capacity announcement of electrical distribution systems: A pragmatic approach

“…Within the European regulatory framework [4][5][6][7] DSOs are not allowed to own generation plants, except for a small number of legacy plants [8] or to manage system losses as in the Belgian Walloon region [9]. This considerably impacts planning activities of DSOs since the lack of coordination between network and generation planning can lead to inefficiencies in electricity supply infrastructure.…”

“…In [8] the need for schemes and practices to provide incentives for DG deployment for the benefit of the network was identified considering different regulations for DSO ownership of DG. This work specifically criticized European regulatory framework and points out difficulties brought by the fact DSOs are not allowed to own generation.…”