Evaluation of distributed generation connecting to distribution network based on long-run incremental cost

In the evaluation of distributed generation (DG) connecting to distribution network, economic potential for DG has not yet been considered from the perspective of social benefit. A new method to evaluate the connection of DG is proposed based on long-run incremental cost indicating the forward-looking network capacity cost at each node in this study. By comparing DG connection cost with the decrement of the network capacity cost resulting from the DG capacity, the appropriateness of DG connecting to distribution network can be determined. On this basis, a heuristic approach is proposed to identify best site and size of DG to guide the connection of DG. The feasibility and validity of the proposed method have been proved in case studies.