Going smarter in the connection of distributed generation

This study explores and quantifies the benefits of connecting more distributed generation (DG) with and without the use of smart connections in Great Britain. We examine the impacts on different parties (Distribution Network Operators, wider society and generators). As illustration we use a specific...

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Bibliographic Details
Published in:Energy policy 2017-06, Vol.105, p.608-617
Main Authors: Anaya, Karim L., Pollitt, Michael G.
Format: Article
Language:English
Subjects:
Case studies
Connections
Cost benefit analysis
Distributed generation
Electricity distribution
Energy industry
Energy policy
Generators
Networks
Operators
Payments
Plug & play
Renewable energy
Smart connection incentive
Smart grid technology
Smart solutions
Technology
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Summary:This study explores and quantifies the benefits of connecting more distributed generation (DG) with and without the use of smart connections in Great Britain. We examine the impacts on different parties (Distribution Network Operators, wider society and generators). As illustration we use a specific case study. Alternative connection scenarios are proposed (with partial and full interruptible capacity quota under a mix of generation with different technology-specific curtailment levels) for integrating DG units in a constrained area of the East of England covered by the Flexible Plug and Play project. The smart (interruptible) connection option is the preferred option across all the scenarios (higher NPV/MW). The analysis of the distribution of benefits between the different parties suggests that generators capture most of the benefits while DNOs and wider society capture much less benefit. A smart connection incentive, which recreates the benefits to DNOs from an earlier losses incentive, is proposed. By contrast with other societally desirable metrics which are usually incentivised or penalised, there is currently no direct connection between more DG MWs connected and DNO incentive payments. Our proposed smart connection incentive, by charging DG for smarter connection may help to distribute more efficiently the benefits for connecting more DG. •Three different dimensions of going smarter to connect DG are discussed.•Benefits for connecting DG in a constrained area (FPP project) are estimated.•Different DG connection scenarios are evaluated.•Generators benefit the most and wider society the least.•A smart connection incentive may help to reallocate the benefits of DG more efficiently.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2017.01.036