A Method to Compensate Independent Distributed Generation Capacity in Distribution Network

To bring the superiorty of distributed generation (DG) in to full play and incite independent investors to invest in DG,a method to compensate capacity of independent DG in marketing environment is proposed. The incremental value of reliability for consumers at all load-points and the value of saved investment of distribution company to increase capacity of distributuion network,which are brought by connecting DG to distribution network,are determined; according to the value generated by connecting DG to distribution network,the compensation that the DG owner obtain as well as the charges that the consumers at load-points and distribution company should pay can be determined. The proposed method can offer economic signals to choose the installation site and decide the capacity of DG for independent investors. The effectiveness of the proposed method is verified by the results of calculation example.