Planning for distributed generation

The primary task of utility distribution system planners is to formulate optimal expansion strategies that would result in reliable and economical service. To address utility distribution system capacity problems caused by the changing economic environment, planners have considered the use of such alternatives as distributed generation (DG). A planning process is proposed for determining when DG and other nontraditional expansion alternatives are economical. The planning process involves computing the cost functions that embody the operating costs of a distribution planning area. The process incorporates more detailed simulations of capacity constraints and customer damage costs because utilities assume more risks.