Potential for efficiency improvement of future electric energy systems with distributed generation units

This paper discusses and identifies the effect of Distributed Generation (DG) units on delivery loss reduction and efficiency improvement of future electric systems. It demonstrates that optimal placement and utilization of DGs in distribution feeders and radial distribution networks can lead to significant efficiency improvement through different parts of electric power systems. To this end, Utilities and Distribution System Operators (DSO) need to encourage DG owners to participate in optimization process. This can be done by implementing encouragement mechanisms such as price signal or feed-in tariffs. Furthermore, this paper investigates and optimizes the effect of μ-level DG units on delivery loss reduction and efficiency improvement of distribution feeders. The paper also proposes two major optimization algorithms for optimum placement and utilization of medium-size and MW-scale DGs in LV distribution networks. Finally, the paper closes with a discussion of policies needed to support efficiency improvement and delivery loss minimization of future distribution systems with large penetration of DG units.