Locational signal methodology for distributed energy resources

The objective of this work is to develop a locational signalling methodology within the use of distribution system tariff that seeks to encourage the growth of micro and mini distributed generation (DG) towards the most technically favourable locations for DG along a feeder. Technical indicators as voltage magnitude, technical losses, loading, overload, imbalance and occurrence of reverse flows, are evaluated to classify the best and worst regions for DG installation. A case study of the proposed methodology is evaluated in three real distribution networks. Based on a multiple step methodology – division of the distribution network into pre-defined regions; calculation of the different hosting capacities of the feeder according to the positional insertion of the DG; and construction of standardized technical indicators - it was possible to classify different regions of the electric feeders through power flow simulations. From the classification results, a locational signal tariff is constructed by clusters of feeders, in such a way that the total utility revenue is guaranteed to be constant, but varying the generators use-of-network tariffs proportionally with each performance classifications. As a result from this model, regions with the worst performance got a DG tariff higher than those ones with the best technical indicators.