Impacts of distributed generation on system reliability in competitive electricity markets

In this paper, the impacts of distributed generation on power system reliability in the competitive electricity market environment are investigated. A comparison is also made to highlight the advantages and disadvantages of having distributed generation (DG) in a particular system. In addition the associated costs and the placement of DG and its effects on reliability are investigated with the aim of optimizing investment planning from the perspective of a distribution company (DISCO). The proposed reliability cost/worth approach can also be utilized as an efficient tool in both system design and planning.