An approach to determine Distributed Generation (DG) benefits in power networks

In this paper, an approach to determine the value-added benefits of distributed generation (DGs) on the performance of power system is proposed. It utilizes a robust optimization technique to compute marginal price contributions of distributed generation (DGs) in a typical power system network. An approach that is based on optimal power flow has been shown. It also features incorporating DG as constraints in the general formulation. The value measures or benefits based on marginal pricing are computed for different loading as well as system contingencies that threatens grid security. The overall scheme provides improved quantitative benefits of DG dispatch at specific locations and offers a justification for applications in grid expansion plans. The Power Holding Company of Nigeria (PHCN) power system network model was adopted for this research and improved to include large-scale penetration of DG at the sub-transmission levels.