Regulatory Analysis of Distributed Generation installed by Distribution Utilities

Abstract

This paper presents an analysis of current regulations and global trends regarding the Distributed Generation (DG) that can be installed by distribution utilities. A study on the implications of installing DG in distribution networks is presented, from both perspectives of the utility and the regulator. In addition, an analysis of the benefits of installing DG from technical, economic and political points of view is explained. Finally, regulatory recommendations and general guidelines of a mechanism for encouraging distribution utilities to invest in DG units are exposed, with the purpose that both the utilities and the consumers can take advantage of resulting benefits.