Open Access Open Access  Restricted Access Subscription or Fee Access

Energy-Based Distributed Generation Incentives for Distribution Network Operators

Mohammad Noor Hidayat(1*), Furong Li(2)

(1) Department of Electronic and Electrical Engineering, State Polytechnic of Malang, Indonesia
(2) Department of Electronic and Electrical Engineering, University of Bath, United Kingdom
(*) Corresponding author



The presence of distributed generation in the electricity distribution system has a significant impact on the performance of the network in terms of reducing power losses, network investment and carbon emissions. The active role of all the associated parties, such as distributed generation investors, electricity retailers and distribution network operators is very important to increase the penetration of distributed generation. One of the methods to encourage the participation of those parties is by giving financial incentives. This paper proposes a mechanism to give some incentives for the distribution network operators based on the actual energy conveyed from the connected distributed generators, rather than based on the connected capacity of the distributed generation, as applied in the current incentive mechanism. A reference network with some generation-dominated busbars is used to examine the power flow and the actual energy conveyed from a new distributed generation connection. The analysis includes different types of distributed generation technologies. The results show that the type of distributed generation technology will determine the amount of energy conveyed through the network, which in turn, will affect the value of incentives for the distribution network operators.
Copyright © 2016 Praise Worthy Prize - All rights reserved.


Distributed Generation; Distribution Network Operator; Distributed Generation Incentives

Full Text:



Víctor H. Méndez Quezada, Juan RivierAbbad, and Tomás Gómez San Román, “Assessment of Energy Distribution Losses for Increasing Penetration of Distributed Generation,” IEEE Transactions on Power Systems, VoL. 21, No. 2, May 2006, pp 533 - 540.

Luis F. Ochoa and Gareth P. Harrison, “Minimizing Energy Losses: Optimal Accommodation and Smart Operation of Renewable Distributed Generation,” Power and Energy Society General Meeting, 2011 IEEE, Detroit Michigan USA, 24-29 July 2011

R. Srinivasa Rao, K. Ravindra, K. Satish, and S. V. L. Narasimham, “Power Loss Minimization in Distribution System Using Network Reconfiguration in the Presence of Distributed Generation,” IEEE Transactions on Power Systems, Vol. 28, No. 1, February 2013, pp 317 – 325.

Philip P. Barker and Robert W. de Mello, “Determining the Impact of Distributed Generation on Power Systems: Part 1 - Radial Distribution Systems,” Proc. IEEE Power Eng. Soc. Summer Meeting, 2000, pp. 1645–1656

Ganesan, E., Dash, S., A New Approach in Modelling and Control of Distributed Energy Resources for Performance Optimisation and Reliability Improvement in a Micro Grid, (2015) International Review on Modelling and Simulations (IREMOS), 8 (1), pp. 26-40.

Adda, M., Benyssaad, Y., Chaker, A., Maintenance Optimization by Reliability for Power Distribution Systems, (2014) International Review on Modelling and Simulations (IREMOS), 7 (4), pp. 613-618.

Ibraheem, W., Gan, C., Ab. Ghani, M., Impact of Photovoltaic (PV) Systems on Distribution Networks, (2014) International Review on Modelling and Simulations (IREMOS), 7 (2), pp. 298-310.

Siti, M., Tiako, R., Optimal Energy Control of a Grid-Connected Solar Wind-Based Electric Power Plant Applying Time-of-Use Tariffs, (2015) International Review of Electrical Engineering (IREE), 10 (5), pp. 653-661.

Rios, M., Moreno Garzon, A., Integrated Generation and Transmission Planning with Intermittent Renewable Energy Sources in High-Level Hydroelectric Generation Systems, (2015) International Review of Electrical Engineering (IREE), 10 (3), pp. 404-413.

Mustapha, B., Ali, M., Belkacem, D., Contribution to the Study of Simulation of Hybrid Systems (Wind-PV) for the Pumping of Water in Arid Areas, (2013) International Review on Modelling and Simulations (IREMOS), 6 (2), pp. 431-440.

Aravindan, P., Sanavullah, M., Vijayakumar, G., Renewable Energy Based Shunt Compensator For Power Quality Improvement, (2014) International Review on Modelling and Simulations (IREMOS), 7 (1), pp. 152-159.

Ashley Brown, Francesca Ciliberti-Ayres, Development of Distributed Generation in the United States, A Report Prepared for Empresa de Pesquisa Energetica (EPE), November 2012

Department of Energy. The potential benefit of distributed generation and rate-related issues that may impede their expansion. Washington, US: Department of Energy; 2007.

Energy Policies of IEA Countries, Australia, 2012 Review.

Distributed Generation in Australia, A Status Review, University of Technology, Sydney, September 2011.

National Archive, 2011. Scottish Power Energy Networks, Distributed Energy - Call for Evidence, Information on Networks Regulatory Framework, 24th November 2006.

National Transmission Grid Study, May 2002.

Energy Policies of IEA Countries, USA, 2007 Review.

Part One: Distribution Rules Review – Network Incentives for Demand Side Response and Distributed Generation, NERA Economic Consulting, April 2007.

Market and regulatory incentives for cost efficient integration of DG in the electricity system, IMPROGRES project Final Report, May 2010.

OFGEM, 2011. Electricity Distribution Price Control Review, Final Proposals, Date of Publication: 7 December 2009 [online]. Available from: [Accessed on 2 February 2011]

Mohammad Noor Hidayat and Furong Li, “Impact of Distributed Generation Technologies on Generation Curtailment,” 2013 IEEE PES General Meeting, Vancouver BC Canada, 21-25 July 2013

Statement Of Methodology And Charges For Connection To Western Power Distribution (South West) Plc’s Electricity Distribution System, March 2013.

Garrad Hassan & Partners Ltd. (2011, September). UK generation and demand scenarios for2030 [online]. Available:

CHP_assumtion_v2 [Online]. Available:

Laura Kane, Graham Ault, and Simon Gill, “New Principles of Access for Wind Generation Curtailment Scheme in Active Network Management,” [Online]. Available:

Mott MacDonald. (2010, June). UK Electricity Generation Costs Update. [Online]. Available:

DECC.(2011, October). Review of the GenerationCosts and DeploymentPotential of RenewableElectricityTechnologies in the UK – Study Report [Online]. Available:


  • There are currently no refbacks.

Please send any questions about this web site to
Copyright © 2005-2017 Praise Worthy Prize