Avoided losses on LV networks as a result of microgeneration

In the scope of the discussions about microgeneration (and microgrids), the avoided electrical losses are often pointed out as an important value to be credited to those entities. Therefore, methods to assess the impact of microgeneration on losses must be developed in order to support the definition of a suitable regulatory framework for the economic integration of microgeneration on distribution networks. This paper presents an analytical method to quantify the value of avoided losses that microgeneration may produce on LV networks. Intervals of expected avoided losses are used to account for the variation of avoided losses due to the number, size and location of microgenerators, as well as for the kind of load distribution on LV networks.

Regulation of microgeneration and microgrids

The concept of microgrid (μGrid) has been emerging as a way to integrate microgeneration (μG) in low-voltage (LV) networks and simultaneously improve its potential benefits. Technical requirements to connect μgrids to LV networks have been studied in order to make this concept technologically feasible and safe to operate. However, the regulatory framework for economic integration of μG and μGrids on distribution systems, despite being crucial, is still an open issue. The main purpose of this paper is to contribute for the development of an appropriate economic regulation framework that removes the barriers to μG and μGrid development. To do so, the relevant costs and benefits resulting from the establishment of μG and μGrid are identified and a methodology for sharing those costs and benefits among the involved economic agents is presented. The only pre-requisite of such a methodology is the existence of a net benefit to all economic agents.