Regulatory matters affecting distribution planning with distributed generation
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Under the present European directive concerning common rules for the internal market in electricity, distribution companies are not allowed to own Distributed Generation (DG) but encouraged to include it as a planning option to defer investment in traditional grid reinforcements.
Distribution system operators (DSOs) have used the provision of capacity contracted to DG as a viable
alternative under current regulatory arrangements. In this paper the topics bonding DSOs and DG owners under the present regulation will be explored and a planning structure that considers Distribution Capacity Contracts (DCCs) as a planning option will be proposed. This will serve as a road map for DSOs to implement its preferred planning tools in an optimization context, considering costs of investment, reliability, operation, and capacity provision while complying with current regulation.
