Demand Side Management as a support to distributed generation in active networks

SUMMARY In the last decade, it has been witnessed an increasing allocation of Distributed Generation (DG) in the MV distribution networks, due to technology improvement, energy market liberalization, and environmental issues. Every year, Distribution Network Operators (DNOs) receive several requests for installations of new generators in their networks. This situation will likely imply a revolution of the distribution networks, actually characterized by radial structure and passive operation, in order to exalt the benefits and reduce the drawbacks that DG can introduce. Therefore, it is predictable in the near future the implementation of an active management of the distribution networks. Active networks in the distribution of the future will require a large use of ICT and automatic control systems to control loads and generators, with the aim of allowing the participation of DERs to the energy and services market and of maintaining a sufficient level of system reliability. Into this scenario, DG and Demand Side Management (DSM) actions should become options that distributors have to consider in order to solve electric supply problems, as requested by the more recent EU directives. In the paper it has been analysed how DSM policies can be a valid opportunity to facilitate the development of DG in a given distribution system and which economical benefits the utilities can derive by the complementary employ of both these distributed resources. Simulation studies have been performed on real Italian distribution networks, showing the effects of DSM actions on the growth of DG in the distribution system and on the technical and economic benefits, they permit to realize.