On the Micro-Grid and Multi Micro-Grid Impact Assessment: Cost and Benefits Evaluation.

Abstract

The implementation of innovative network solutions to allow for an increase of micro-generation and demand side integration are highly dependent on building scale and cost effective infrastructures, where sharing of responsibilities among different stakeholders is the basis for a proper implementation of an active distribution network concept. In order to integrate large amounts of small and micro-generation (μG) units that exploit different power sources (with high or no intermittency) together with controllable loads and storage devices it is necessary to develop flexible management and control solutions where responsibilities for the system operation are shared between Distribution System Operators (DSO), customers and Distributed Generation (DG) units according to a regulatory environment. The incentives provided to the different parties (stakeholders) may have a major impact on their decision to adopt Micro-grid and Multi Micro-grid concepts. Therefore, an identification of the benefits and costs associated with these concepts adoption is needed in order to recognize the real value of their deployment. Moreover, only by proper allocation of these costs and benefits, each stakeholder affected may receive the right incentive to opt for Micro-grid and Multi Micro-grid solutions. The DSO is interested in maximizing profits, by minimizing the capital and operational costs related to the distribution service (for instance, loss reduction and reinforcement costs) and at t