An Analysis of Potentials and Economic Benefits of Distributed Generations as Reactive Power Providers in Thailand

The increase in the installed capacity of distributed generations (DGs) in Thailand probably reduces reliance on conventional generators, which are the main ancillary service providers of the electrical system. As the ancillary services are decreased, the networks are vulnerable and may confront various problems, e.g., black out, low power quality. Thus, the idea of encouraging DGs to become new ancillary service (AS) providers is proposed. This study focuses on the potential of DGs in Thailand to become reactive power providers and investigates the economic value of DGs in helping conventional generators with reactive power services. DIgSILENT and opportunity cost approaches are used in this study. The results show that DGs have the potential to provide reactive power and more efficiency in terms of economic values.