Planning for Distributed Generation

Distributed generation (DG) can be incorporated into distribution planning as an option along with traditional feeder and substation options. In place of rigid capacity planning rules, the planning process needs to incorporate more detailed simulations of capacity constraints and customer damage costs because utilities now assume more risk. Planning tools need to simulate load variations, contingencies, dispatch and control action to more accurately determine the capacity limits and related costs. This is especially important when considering DG because the siting and dispatch have an important impact on the benefits to the utility. Equally important is the evaluation of economic risk given uncertainties such as load growth. Because of the added complexities associated with these analysis techniques, the planning process must incorporate appropriate screening tools to determine the depth of analysis needed for particular projects, thereby making more efficient use of already scarce planning resources.