Economy evaluation of distribution networks with distributed generation based on cost-benefit method

The widespread installation of distributed generation system is increasing challenges because of the potential cost and benefits. Although the cost of distributed generation is high, it can improve the reliability of power supply, reduce environmental pollution and bring more economic benefits to the society. Firstly, the impact of distributed generation on economy and reliability of distribution network is analyzed in this paper, and compared with the traditional thermal power generation. Then, the cost-benefit method is adopted and a comprehensive benefits model considering cost and benefits is proposed. The IEEE RBTS BUS6 F1 and F3 system is utilized as the distribution network case study, and the calculation results are presented and discussed. This model can be used in evaluating different projects.