Strategic analysis framework for evaluating distributed generation and utility strategies

Abstract

A strategic analysis framework for evaluating distributed generation and distribution utility strategies is presented. The framework is based on the idea of evaluating all distributed generation issues across many scenarios to encapsulate the breadth of uncertainties stemming from independent distributed generation in regulated distribution networks. A distributed generation value function is proposed to enable distribution system planners and strategists to gauge the aggregate impact of distributed generation on all parts of the distribution business. This enables the distribution company to formulate its response to distributed generation by testing prospective strategies using the range of generation market, power network and utility business models proposed. The results from a case study based on the UK situation shows the potential value of distributed generation (both positive and negative) to distribution network operators. The case study also demonstrates the application of the proposed strategic analysis framework and the value of the results produced.