Capacity deferral credit evaluation of renewable distributed generation

Renewable distributed generation (DG) units can aid in distribution network planning and can be utilized in distribution expansion planning. In order to support the development of distributed renewable resources in the distribution network and to make these resources competitive in the energy market, a well justified credit scheme needs to be devised. In this paper, an analytical method has been developed to estimate the capacity deferral credit of renewable DGs that can be claimed from distribution system operators (DSOs) due to the deferral of conventional distribution network expansion options. The distribution network adequacy has been assessed using the combined multistate availability model of supply sources and load point availability model. A modified load adjustment method has been developed to estimate the effective load carrying capability (ELCC) of renewable DG systems in the distribution network. The renewable DG capacity deferral credit computation procedure is presented and discussed. The proposed technique has been validated using an example radial distribution network and the results show that the proposed method can be used by the DSOs to incentivize the DG owners.