Including distributed resources in distribution planning

There continues to be strong interest in distributed resources (DR) connected to distribution systems. One question that persists is how to include DR in the planning process. This question can take a number of different forms depending on the local concerns. No single method fits each situation precisely. Planning tools must be flexible. Many engineers focus on the technical aspects of the interconnection and operation. This is ultimately necessary for achieving a successful implementation of DR, but such focus may not disclose the value in the implementation. The value may be determined by a number of factors including reliability, cost to ratepayers, environmental concerns, and governmental policies. Economists bring a big picture perspective to the problem that better defines the value, but can gloss over sticky engineering hurdles in the implementation. This paper describes methods that the authors (an engineer and an economist) have been developing for over a decade to more closely connect the engineering and economic concerns in the planning process. [1–6]