Assessing the performance and benefits of customer distributed generation developers under uncertainties

In this paper, the performance of customer-owned distributed generation (DG) units is quantified from different perspectives through an uncertainty study. A Monte Carlo-based method is applied to assess the stochastic operation of the customer-owned DG units in the power distribution system. Several cases are studied to analyze the impact on system performance of using such generators, with the emphasis on benefits. The results of the studied cases show that proper operation of customer-owned DG units placed close to significant consumption centers offers several benefits which lead to significant energy savings and improvement in the performance indices while maintaining the cost-effectiveness. Furthermore, based on the energy demand, different electricity price scenarios considering a cost sensitivity analysis are performed to indicate how the variations in electricity price influence each scenario’s feasibility. It is concluded that implementation of a proper energy purchase policy, and allocating the benefits of DG units to the owners, improves the economic performance of their investments and encourages customer DG developers to connect DG to the distribution network.

Research highlights
► Focusing on the main drives for customers and utilities to adopt DG solutions.
► Assessing the stochastic operation of the customer-owned DG units in the power distribution system using Monte Carlo method.
► Studying the technical and economic impacts of customer-owned DG units in a distribution system.
► Implementing the proper power purchase policy by the utility to encourage DG owners to operate at peak load periods.
► Performing different electricity price scenarios to indicate the ability of customer-owned DG units to reduce the volatility in prices.