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Going smarter in the connection of distributed generation

Author

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  • Anaya, Karim L.
  • Pollitt, Michael G.

Abstract

This study explores and quantifies the benefits of connecting more distributed generation (DG) with and without the use of smart connections in Great Britain. We examine the impacts on different parties (Distribution Network Operators, wider society and generators). As illustration we use a specific case study. Alternative connection scenarios are proposed (with partial and full interruptible capacity quota under a mix of generation with different technology-specific curtailment levels) for integrating DG units in a constrained area of the East of England covered by the Flexible Plug and Play project. The smart (interruptible) connection option is the preferred option across all the scenarios (higher NPV/MW). The analysis of the distribution of benefits between the different parties suggests that generators capture most of the benefits while DNOs and wider society capture much less benefit. A smart connection incentive, which recreates the benefits to DNOs from an earlier losses incentive, is proposed. By contrast with other societally desirable metrics which are usually incentivised or penalised, there is currently no direct connection between more DG MWs connected and DNO incentive payments. Our proposed smart connection incentive, by charging DG for smarter connection may help to distribute more efficiently the benefits for connecting more DG.

Suggested Citation

  • Anaya, Karim L. & Pollitt, Michael G., 2017. "Going smarter in the connection of distributed generation," Energy Policy, Elsevier, vol. 105(C), pages 608-617.
  • Handle: RePEc:eee:enepol:v:105:y:2017:i:c:p:608-617
    DOI: 10.1016/j.enpol.2017.01.036
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    References listed on IDEAS

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    1. Anaya, Karim L. & Pollitt, Michael G., 2015. "Integrating distributed generation: Regulation and trends in three leading countries," Energy Policy, Elsevier, vol. 85(C), pages 475-486.
    2. Vogel, Philip, 2009. "Efficient investment signals for distributed generation," Energy Policy, Elsevier, vol. 37(9), pages 3665-3672, September.
    3. Zangiabadi, Mansoureh & Feuillet, Rene & Lesani, Hamid & Hadj-Said, Nouredine & Kvaløy, Jan T., 2011. "Assessing the performance and benefits of customer distributed generation developers under uncertainties," Energy, Elsevier, vol. 36(3), pages 1703-1712.
    4. Anaya, Karim L. & Pollitt, Michael G., 2014. "Experience with smarter commercial arrangements for distributed wind generation," Energy Policy, Elsevier, vol. 71(C), pages 52-62.
    5. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.
    6. Pruitt, Kristopher A. & Braun, Robert J. & Newman, Alexandra M., 2013. "Establishing conditions for the economic viability of fuel cell-based, combined heat and power distributed generation systems," Applied Energy, Elsevier, vol. 111(C), pages 904-920.
    7. Passey, Robert & Spooner, Ted & MacGill, Iain & Watt, Muriel & Syngellakis, Katerina, 2011. "The potential impacts of grid-connected distributed generation and how to address them: A review of technical and non-technical factors," Energy Policy, Elsevier, vol. 39(10), pages 6280-6290, October.
    8. Anaya, Karim L. & Pollitt, Michael G., 2015. "Options for allocating and releasing distribution system capacity: Deciding between interruptible connections and firm DG connections," Applied Energy, Elsevier, vol. 144(C), pages 96-105.
    9. Amor, Mourad Ben & Pineau, Pierre-Olivier & Gaudreault, Caroline & Samson, Réjean, 2012. "Assessing the economic value of renewable distributed generation in the Northeastern American market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5687-5695.
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    Cited by:

    1. repec:eee:appene:v:216:y:2018:i:c:p:576-587 is not listed on IDEAS
    2. repec:eee:enepol:v:120:y:2018:i:c:p:610-621 is not listed on IDEAS
    3. repec:eee:eneeco:v:72:y:2018:i:c:p:436-450 is not listed on IDEAS
    4. repec:gam:jeners:v:11:y:2018:i:10:p:2608-:d:172959 is not listed on IDEAS
    5. repec:eee:renene:v:133:y:2019:i:c:p:1136-1146 is not listed on IDEAS
    6. repec:gam:jeners:v:10:y:2017:i:10:p:1473-:d:112993 is not listed on IDEAS
    7. Richter, Laura-Lucia & Pollitt, Michael G., 2018. "Which smart electricity service contracts will consumers accept? The demand for compensation in a platform market," Energy Economics, Elsevier, vol. 72(C), pages 436-450.
    8. repec:eee:enepol:v:107:y:2017:i:c:p:1-10 is not listed on IDEAS
    9. repec:eee:energy:v:163:y:2018:i:c:p:822-836 is not listed on IDEAS
    10. repec:eee:enepol:v:121:y:2018:i:c:p:374-382 is not listed on IDEAS
    11. repec:eee:appene:v:212:y:2018:i:c:p:881-894 is not listed on IDEAS
    12. Arjan S. Sidhu & Michael G. Pollitt & Karim L. Anaya, 2017. "A Social Cost Benefit Analysis of Grid-Scale Electrical Energy Storage Projects: Evaluating the Smarter Network Storage Project," Working Papers EPRG 1710, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

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