Regulation of microgeneration and microgrids

Financial and environmental benefits of activedistribution networks

“…For an incentive mechanism based on Non-Delivered Energy (NDE), a high improvement for a low reference not only decrease the compensation but turn them into a reward [16]. Although the reward level is temporal for a moving reference, still this could be an important extra revenue stream.…”

“…Further readings on the topic include: A survey on economic signals for power distribution system in [10]; A survey on microgrid benefits that may serve as an introduction [11]; And the studies in [12,13] which offers an extended insight on social-economic microgrid benefits. Further details of some of the benefits here presented can be found in [14,15,16].…”

“…If reactive and harmonic active filtering is implemented within power electronic interfaces, also a better power quality could be achieved [20,21,14]. The DNO can encourage Independent Power Producer (IPP) to prefer a selectivity benefit strategy (see IPP benefits on section 2.1.1), by observing that price reactivity from the IPP could alleviate distribution system congestion, thus reducing the amount of energy purchased in the wholesale market and/or deferring infrastructure updates [19,14,16]. System congestion reduction can also be translated to the power system operator to reduce the transmission costs due to constraints.…”

“…In [16], Costa et al presents the benefit based on typical reliability indexes without concerning the value of reliability itself. For a guide to outage valuation see [34]; moreover [35] analyzes problems of usual practices for reliability improvement valuation.…”

“…A simple accounting method of the reliability support benefit is presented in [16,22] and [13] and annex 4 of [12] can be also consulted for further information. In [16], Costa et al presents the benefit based on typical reliability indexes without concerning the value of reliability itself.…”