Determination of local purchasing price from DGs in distribution network by DSO with consideration of their technical impacts

With presence of distributed generation (DG) in distribution networks, distribution system operators (DSO) have the options to purchase energy from DG units and/or directly from the wholesale electricity market. The utility´s desired purchasing price of DGs energy depends on their impact on network, and wholesale market price. This paper proposes a method to determine DG energy price in short-term operation with consideration their impact on loss and reliability. The performance of the proposed approach is assessed by using 8-bus distribution network.