Exploring the Trade-offs Between Incentives for Distributed Generation Developers and DNOs

Abstract

Regulators are aiming to incentivize developers and Distribution Network Operators to connect distributed generation (DG) to improve network environmental performance and efficiency. A key question is whether these incentives will encourage both parties to connect DG. Here, multiobjective optimal power flow is used to simulate how the parties' incentives affect their choice of DG capacity within the limits of the existing network. Using current U.K. incentives as a basis, this paper explores the costs, benefits and tradeoffs associated with DG in terms of connection, losses and, in a simple fashion, network deferral. © 2007 IEEE