Going smarter in the connection of distributed generation

Karim Anaya and Michael Pollitt

Energy Policy, 2017, vol. 105, issue C, 608-617

Abstract: 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.

Keywords: Distributed generation; Renewable energy; Smart solutions; Cost benefit analysis; Smart connection incentive (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:105:y:2017:i:c:p:608-617

DOI: 10.1016/j.enpol.2017.01.036

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