Economic Benefits Analysis of Distributed Generation and Its Assessment Model

Although the application of distributed generation (DG) is increasingly extended,the reasonable quantization of its economic benefit is yet difficult to be implemented.In this paper,the economic profits created by DG such as lessening line losses,reducing electricity price,energy conservation and pollutant emission reduction,reducing generating capacity and standing over the construction investment of distribution network and so on are analyzed.Based on generic line loss model,a model to assess line loss reduction due to connecting DG with power network is built.From the viewpoint of short-term operation of market and taking the line loss model after connecting DG with power network as the constraint,a new marginal price is solved.Under the new unit scheduling due to connecting DG with power network,an environmental benefit model brought by reducing pollutant emission is built.Calculation example shows that reasonable planning of connecting DG with power network and proper operation DG can bring about notable economic benefits for power system.