An approach to quantify the technical benefits of distributed generation

Recent changes in the electric utility infrastructure have created opportunities for many technological innovations, including the employment of distributed generation (DG) to achieve a variety of benefits. After a brief discussion of the benefits, this paper proposes a general approach and a set of indices to assess some of the technical benefits in a quantitative manner. The indices proposed are: 1) voltage profile improvement index; 2) line-loss reduction index; 3) environmental impact reduction index; and 4) DG benefit index. Simulation results obtained using a simple 12-bus test system and a radial system are presented and discussed to illustrate the value and usefulness of the proposed approach.