Customer-perspective approach to reliability evaluation of distributed generation

In this paper we present a methodology for economic assessment of installing distributed generation (DG) for industrial/ commercial customers. We propose an approach where the benefits of improved reliability and optimal DG operation are taken into account, respecting the overall lifetime of investment and converting the monetary amounts into their present values. The method is applied by comparing the finite number of market available investment options, detecting the profitable ones, and in case of a positive answer, declaring the best solution for customer.