Access and pricing of distribution network with distributed generation

Effective integration of distributed generation (DG) in distribution networks can be stimulated by providing adequate economic signals to inform DG developers and operators about the preferable locations and the value of DG in the context of providing network flow control services and deferring network reinforcement. DG which contributes positively in the reduction of network investment cost should be rewarded and DG which drives network reinforcement should be penalized. In that context, this paper discusses the importance of having cost reflective access and distribution network pricing and highlights the need for recognizing the link between network design and planning, drivers for investment and pricing.