Distribution network planning for a modern decentralized power system

The promotion of distributed generation is a direct consequence of deregulation of modern power networks. For a utility facing distribution capacity bottlenecks or uncertain load growth, DG can be particularly valuable since generators can be dispersed throughout the system and constructed relatively quickly. Regulatory changes in Egypt and advances in DG technology may lead utilities to consider these technologies as alternative to central generation, transmission and distribution. For certain areas in Egypt, DG is the norm to supply electricity to consumers. Moreover, DG is perceived as a means to reduce the need for capacity additions. The regulatory pressures imposed by the fixed tariff demands careful planning of distribution networks to avoid over investments. Distributed generation proposals must be studied carefully to assess its impact on both the distribution utility and the customer. The objective of this paper is to establish a methodology for distribution network planners to assess the impact of those technologies on their utilities. For the regulator, the proposed methodology assesses the impact on all involved parties. A case study is presented to validate the proposed formulation.