Distributed generation by D N Gaonkar

By D N Gaonkar

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17-18, (December 2005) 3025-3041, ISSN 1359-4311 Chicco, G. & Mancarella, P. (2007a). Trigeneration Primary Energy Saving Evaluation for Energy Planning and Policy Development. Energy Policy, Vol. 35, No. 12, (December 2007) 6132-6144, ISSN 0301-4215 Chicco, G. & Mancarella P. (2007b). Exploiting Small-Scale Cogeneration in Energy-Related Markets, Proceedings IEEE PowerTech 2007, paper 319, ISBN 978-1-4244-2189-3, Lausanne, Switzerland, 1-5 July 2007, The IEEE, Piscataway, NJ Chicco, G. & Mancarella, P.

The current network management approach is based on an equal treatment of both consumers and distributed generators that want to be connected to the distribution network. New distributed generation connections influence electricity flows in the distribution network. The network needs to be dimensioned on peak generating capacity of the distributed generation unit resulting, in some cases, in incremental reinforcement in the network by the DSO. This is also called the passive network management approach, or ‘fit and forget’ approach: when distributed generation enters the distribution network, upgrade investments based on peak distributed generation output are undertaken and for the remainder any electricity production from the unit is taken as given.

4. 2 DSO financial model The DSO revenue and expenditure model contains the revenue and expenditure items of the DSO and calculates net profit over a longer period of time. The model has the following basic characteristics. First, the model is incremental in the sense that it does not explicate the costs and revenues related to ‘business as usual’ but only the incremental costs and revenues caused by the increase of distributed generation in the distribution network. This enables a strict assessment of the impact of DG on the DSO.

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