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How Traditional Regulation of DSOs Can Be Improved to Accommodate Higher Levels of DG
more focus on bringing down network utilisation and losses at peak what economic signals should be given to DG companies to achieve
load times, i.e. when the network is used most intensively and their active integration in distribution networks?
therefore would have a tendency to increase line losses.
Current network regulation should be updated to ease the integration
Conclusions of DG, and new regulatory improvements in DSO remuneration are
The European Electricity Directive mandates legal and functional required that consider the incremental costs resulting from the
unbundling of distribution from generation and supply. Therefore, connection of DG. Additionally, new schemes are needed to integrate
location and operation of DG cannot be decided by DSOs. As a DG for an efficient expansion of the distribution network and to take
consequence, regulation should provide both DG and DSOs with the advantage of DG in order to improve network quality performance. In
adequate price signals and incentives. addition, specific incentives for innovation are deemed necessary so as
to achieve a long-term and deeper transformation of distribution
To improve network integration of DG into the network, two main networks. The aim is to evolve from current passive networks to active
questions must be addressed: networks, where DG can play an active role thanks to its effective and
efficient integration. Finally, some new proposals should be designed
how can regulation of DSOs ease the integration of DG into to define DG shallow connection charges and DG use-of-system
electricity networks? and charges with location and time differentiation. n
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3. Peças Lopes JA, Hatziargyriou N, Mutale J, et al., Increasing penetration of renewable and distributed 13. Cossent R, Gómez T, Frías P, Towards a future with large
Integrating distributed generation into electric power electricity generation and the need for different network penetration of distributed generation: Is the current
systems: A review of drivers, challenges and opportunities, regulation, Energ Pol, 2009;37(8):2907–15. regulation of electricity distribution ready? Regulatory
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4. Joskow PL, Incentive Regulation in Theory and Practice: benefits of distributed generation, IEEE Trans Power Syst, 2009;37(3):1145.
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Cambridge Working Papers in Economics CWPE0607, 9. Mendez VH, Rivier J, de la Fuente JI, et al., Impact of based tariff for distribution networks with DG, IEEE Trans
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0511, 2006. Int J Electr Power Energ Syst, 2006;28(4):244–52. 15. Li F, Padhy NP, Wang J, Kuri B, Cost–benefit reflective
5. Gómez T, Rivier J, Frías P, et al., Guidelines for 10. Frias P, Gomez T, Cossent R, Rivier J, Improvements in distribution charging methodology, IEEE Trans Power Syst,
improvement on the short term of electricity distribution current European network regulation to facilitate the 2008;23(1):58–64.
network regulation for enhancing the share of DG. DG- integration of distributed generation, Int J Electr Power Energ
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