Estimation of Variable Costs of Electricity Distribution Company due to Distributed Generation

The determination and reasoning of distribution transfer charges has faced a new problem when penetration of distributed generation has increased. There are sometimes arguing between a network and a production company about the level of charges. The reasoning of chosen charges should be based on real costs and market legislation and rules. The paper will present a statistical planning method for estimation of variable costs of distribution network due to distributed generation. The statistical method is capable of calculating functioning of electricity distribution network hour by hour. Variable costs of a distribution network are determined based on these calculation results. The properties of the proposed method are presented with two example cases