Integration of the embedded generation into distribution systems at the competitive markets

Current approach of DG and RES development “produce and forget” does not provide mechanisms able to support power system operation within its technical standards. Units must be responsible for impact on power system operation. Hence, maximization of the energy production from DG and RES should be replaced by optimization of the “system values”. The paper presents a concept of active coordination of electricity generation, power flows and energy use in MV distribution networks by optimization of the operation of power system. Optimization applied takes into account energy balancing, reactive power generation, power flows and losses appearing during distribution network operation. The main objective of the optimization proposed is to calculate the operating schedules for the generating units in terms of active and reactive power, including ancillary services and providing continuous energy balancing at the competitive market.