A simple approach for distributed generation integration considering benefits for DNO

This paper proposes a simple analytical strategy for distributed generation (DG) integration considering the benefit for distribution network operator (DNO) under the unbundled environment where DG units are owned by DG developers. This benefit arises from network reinforcement deferral and loss reduction due to optimal DG size and operating power factor. The optimal size and power factor are strategically calculated for each location to achieve the highest benefit using the analytical approach. A computational procedure is also developed to accommodate a predefined number of DG units using the proposed approach. The results obtained on a 69-bus test distribution system demonstrate the effectiveness of the proposed methodology and computational procedure. It is observed that the optimal power factor operation can achieve the maximum benefit for DNO, while achieving the optimum voltage profiles and maximizing DG penetration.