Technical and economic assessment of active distribution network technologies

Nowadays, distribution network operators are beginning to integrate communication based equipment and active participation of customers into the operation and planning of their grids. Active distribution network and the so called Smart Grid enabling technologies provide solutions for the transition of distribution networks from the usual, passive fit-and-forget approach. However, there are still some barriers preventing the large scale deployment of such technologies, principally the high implementation costs. Despite this widely accepted barrier, there is still a lack of publicly available information about cost - benefit analyses and appropriate design tools. This paper proposes a simple methodology for the technical and economic evaluation of active distribution network projects. A case study is presented to illustrate the proposed methodology, where technical benefits are quantified in monetary terms in order to conduct a feasibility analysis of the project. The assessment shows that a better understanding of the impacts that such projects bring to distribution networks will push further development of active distribution network technologies.