DG Locational Value in Distribution Systems Considering Reliability via Cooperative Game Theory

Abstract

This paper presents a new methodology for valuation and remuneration of distributed generation (DG) sources in distribution power systems. The main concept is the shaping of a tariff signal capable of capturing the effects of DG, accurately measuring the costs and benefits and allocating them according to the responsibility of each generating agent, in view of their site in the grid. This signaling is composed by the changes provoked by DG in four tariff properties: network usage, electrical losses, peak load, and reliability indices. The allocation of responsibilities among generators is performed using the Shapley value from the cooperative game theory. To illustrate the proposed methodology, the IEEE RBTS DG version and a Brazilian distribution network are used and the results obtained are widely discussed.