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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
2 0.88188 0.86280 0.84562 0.83033 0.81692 0.80538 0.79569 0.78785 0.78184 0.77766 0.77529
3 0.88188 0.84581 0.81359 0.78517 0.76051 0.73956 0.72229 0.70863 0.69858 0.69208 0.68909
4 0.88188 0.82049 0.76628 0.71912 0.67884 0.64532 0.61842 0.59800 0.58394 0.57611 0.57440
5 0.88188 0.79826 0.72524 0.66251 0.60975 0.56669 0.53304 0.50853 0.49293 0.48599 0.48748
6 0.88188 0.77696 0.68637 0.60957 0.54601 0.49519 0.45664 0.42992 0.41462 0.41035 0.41674
7 0.88188 0.76444 0.66794 0.59123 0.53323 0.49297 0.46955 0.46216 0.47004 0.49249 0.52888
8 0.88188 0.75823 0.65994 0.58531 0.53284 0.50118 0.48909 0.49547 0.51933 0.55974 0.61587
9 0.88188 0.75165 0.65326 0.58411 0.54192 0.52470 0.53069 0.55834 0.60625 0.67318 0.75802
10 0.88188 0.74909 0.65230 0.58823 0.55405 0.54730 0.56588 0.60792 0.67178 0.75600 0.85927
11 0.88188 0.74858 0.65376 0.59368 0.56516 0.56547 0.59227 0.64352 0.71742 0.81240 0.92704
12 0.88188 0.74907 0.65659 0.60035 0.57687 0.58324 0.61693 0.67577 0.75784 0.86148 0.98520
13 0.88188 0.84612 0.81677 0.79369 0.77676 0.76589 0.76095 0.76183 0.76843 0.78067 0.79843
14 0.88188 0.84695 0.82176 0.80605 0.79954 0.80198 0.81313 0.83276 0.86064 0.89656 0.94033
15 0.88188 0.84756 0.82464 0.81273 0.81149 0.82056 0.83963 0.86838 0.90654 0.95381 1.00994
16 0.88188 0.84797 0.82627 0.81634 0.81779 0.83021 0.85324 0.88654 0.92978 0.98264 1.44085
17 0.88188 0.76011 0.65709 0.57188 0.50360 0.45145 0.41469 0.39263 0.38464 0.39015 0.40858
18 0.88188 0.74608 0.63326 0.54201 0.47108 0.41932 0.38571 0.36930 0.36924 0.38472 0.41502
19 0.88188 0.73028 0.60715 0.51037 0.43811 0.38875 0.36082 0.35302 0.36417 0.39321 0.43918
20 0.88188 0.71770 0.58705 0.48709 0.41537 0.36975 0.34835 0.34952 0.37177 0.41379 0.47439
21 0.88188 0.70695 0.57064 0.46924 0.39964 0.35915 0.34544 0.35649 0.39053 0.44598 0.52144
22 0.88188 0.69474 0.55315 0.45211 0.38745 0.35572 0.35394 0.37959 0.43049 0.50471 0.60058
23 0.88188 0.68520 0.54086 0.44237 0.38450 0.36295 0.37413 0.41502 0.48303 0.57595 0.69182
24 0.88188 0.67703 0.53229 0.43928 0.39145 0.38349 0.41109 0.47067 0.55919 0.67411 0.81320
25 0.88188 0.67376 0.53059 0.44271 0.40265 0.40452 0.44352 0.51572 0.61785 0.74715 0.90124
26 0.88188 0.67307 0.53197 0.44813 0.41358 0.42204 0.46848 0.54876 0.65946 0.79772 0.96109
27 0.88188 0.67360 0.53498 0.45502 0.42537 0.43948 0.49212 0.57904 0.69671 0.84217 1.01295
28 0.88188 0.76437 0.67071 0.59943 0.54914 0.51863 0.50679 0.51262 0.53519 0.57366 0.62727
29 0.88188 0.76483 0.67447 0.60896 0.56662 0.54595 0.54564 0.56448 0.60138 0.65537 0.72554
30 0.88188 0.76581 0.67919 0.61979 0.58558 0.57483 0.58597 0.61761 0.66849 0.73749 0.82359
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
An improved analytical method is proposed in [14] to find the locations are plotted in Fig 1 and Fig 2 for illustration. It is
optimal sizes, optimal locations of various types of DG. It also observed that there is an appreciable reduction in line loss and
presents the importance of operating DGs that are capable of significant improvement in voltage profile.
delivering both real and reactive power at the proper power
factor to achieve minimum loss. Hedayati.et.al. [15] proposed Table 2. Summary of minimal line losses for variation of
a method based on continuous power flow. In this method DG capacity and DG location
they first determine the most sensitive buses to voltage % DG DG Line
collapse. After that, the DG units with certain capacity will be Method
capacity location loss (MW)
installed in buses via an objective function and an iterative
algorithm. However, these works does not discuss about 0% ---- 0.88188
viability of project implementation in terms of economics as
well as environmental benefits. 10% 27 0.67360
28
International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
= 209.19/24 = 8.7163 MW the above selected DG capacities which are in Table 3 being
connected to their respective optimal locations. For base case
Size of DG = (8.7163+0.88180) * 60% = 5.75688 MW NPV analysis fixed cost of 1 MW DG plant is assumed at the
rate of 20, 00,000 $/MW. When DG is connected to the
The cost benefit analysis is carried out (without considering system it is not run at 100% of rated capacity throughout the
environmental emissions and percentage of outage rate) for day.
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
The hourly loading pattern for 24 hours of a day on DG may and is used for capital budgeting to measure the excess or
be scheduled as shortfall of cash flows in present value terms once financing
charges are met [16]. In this case, the financial benefit to
22 hr to 24 hr and 00 hr to 04 hr (06 hrs) 30% of LDCs of increased DG uptake at strategic locations on the
rated capacity distribution feeder is evaluated using NPV analysis. The NPV
04 hr to 08 hr and 12 hr to 17 hr (09 hrs) 50% of of a sequence of cash flows takes as input the cash flows and
rated capacity a discount rate or function and outputs a price; the converse
08 hr to 12 hr and 17 hr to 22 hr (09 hrs) 100% of process in DCF analysis – taking a sequence of cash flows
rated capacity and a price as input and inferring as output a discount rate
Plant load factor (PLF) for a day = ∑ (Duration in (e.g. “break even” discount rate which would yield the given
hours*percentage of rated capacity utilization)/24 = price as NPV) is called the yield, and is more commonly used
(6*0.30+9*0.50+9*1)/24 = 63.75% in finance, e.g. bond trading [17]. In this paper, a planning
The pattern of loading may vary but it will consider the PLF period of twenty years was used to standardize the time
as 63.75% throughout all other calculations horizon so that a NPV analysis can be performed and the
financial benefits can be compared in present value terms.
DGkWh = PDG *24*PLF (1.1) Below are the expressions used in the NPV analysis.
KWh loading of DG = rating of DG in KW * hours of the day CDGO&M= COMDG* DGkWh*365 (1.3)
* PLF
CDGinstcost = PDG *CDGcapcost (1.4)
= 5.75688(60%)*1000*24*0.637 = 88011 KWh or units/day
CDGenvcost = DGkWh *Cemiscost*365 (1.5)
DG income has the two aspects, one is income from energy
generated and the other is from saving of energy due to line Coutage = DG aninc *Routage (1.6)
loss reduction. The calculation procedure for those incomes as
follow: Cdep = Rdep * CDGinstcost (1.7)
DG a.inc = Celect*365(DGkWh + PLLR *PLF*24) (1.2) DGinbtax = DG a.inc - CDGO&M - Coutage – Cdep (1.8)
1. From above, 93278 units/day, calculated@ 0.088 DGNPV = - CDGinstcost + (DGinaftax) (1.10)
$/unit which is the assumed fixed tariff at prevailing
rate of Distribution Company for domestic For base case NPV analysis, it is assumed that the operation
consumers for a year. and maintenance cost (O&M) and depreciation cost is 5% of
= $ 0.088*88011*365 = $ 2826913 DG installation/investment cost. The equipment cost will be
PLLR = Line loss without DG – Line loss with DG written off to depreciation over a project life of 20 years. The
= 0.88180 – 0.34544 = 0.5355 MW = 536.3 KW tax on income is assumed as 10% per annum and a 10% rate
2. Note that above KW saving is when the DG runs at of return per annum is expected as minimum but which may
full load. Calculating the income in the same be nullified by the hike of electricity tariff at the same rate. To
manner as in (1) for a year evaluate the impact of DG capacity on financial benefits, NPV
= $ 0.088*536.3*0.637*24*365 = $ 263350 analysis has been performed on 30%, 50% and 60% DG
Annual income from DG = $ 2826913 + 263350 = $ capacities. The financial analysis results for 30%, 50% and
3090263 60% DG capacities are given in Fig 4and Fig 5. From Fig 4
Above procedure is repeated for 30% and 50% DG capacities. and Fig 5 it is observed that the year of cost recovery and
return on investment is varying with variation of DG capacity,
Fundamental to finance is the concept of “time value of which represents a profitable operation.
money,” where the assumption is that money is worth more in
your hand today then tomorrow. For example, money 5. SELECTION OF SUITABLE DG
available now can be invested to generate interest and revenue TECHNOLOGY
which is a lost opportunity if one has to wait for money to DG technologies can be classified as renewable and non-
have at their disposal. The NPV, or net present worth (NPW), renewable. Renewable include photovoltaic, wind,
of a time series of cash flows, both incoming (positive) and geothermal, tidal, ocean. Nonrenewable include internal
outgoing (negative), is defined as the sum of the present combustion engine (gas or diesel or heavy oil), micro turbine,
values (PVs) of the individual cash flows [16]. If all future fuel cells [18]. Almost all renewable DG technologies are non
cash flows are incoming and the only outflow of cash is the dispatchable. For example wind turbine cannot be installed in
purchase price, the NPV is simply the PV of future cash flows
minus the purchase price [16]. NPV is a valuable tool in
discounted cash flow (DCF) analysis, is a standard method for
using the time value of money to appraise long-term projects
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
Table 4. Economic summary of some DG technologies [17- areas where there is no steady wind or in hurricane or cyclone
23] prone areas, same with the case of photovoltaic. So all DG
technologies have not yet proven to be cheap, clean and
Life Cycle reliable for field application. The economics and currently
Average Life
Type of Emission available DG technologies are summarized in Table 4. In the
Cycle present study assuming the presumed benefits of DG
Generation gCO2eq/ kWhe
Emission in technologies, a selection process is carried out for the
Technology
gCO2eq/ kWhe implementation of project based on NPV analysis. Significant
Min ~ Max emission cost of each DG technology has been calculated
based on [26] and presented in Table 4, where emission
F.F. Coal 800~1000 900 includes pollutants like Co2, So2, Co, Nox. Based on Table 4,
NPV analysis has been carried out for various DG
Oil Fired 700~800 750 technologies including environmental costs, and results are
illustrated in Fig 6 and Fig 7. From Fig 6 and Fig 7, it is
Natural Gas Fired 360~575 467 noticed that all DG Technologies doesn’t yield financial
benefits during the project period even though the emission
cost is negligible for technologies like WT and PV (this is due
PV 50~73 61.5
to their higher initial investment cost as compared to other DG
technologies). Table 5. sets out typical life-cycle CO2
WT 8~30 19
emissions of the major forms of electric power generation
technologies. Through the data in this table, it is found that
Hydro 1~34 17.5 CO2 emissions from coal and biomass technologies are far
exceeded those of renewable energy technologies.
Bio-Mass 35~99 67
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
Fig 8: Cumulative reduction of CO2 over project period in the presence of various DG Technologies
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
Fig 9: Cumulative production of CO2 over project period in the presence of various DG Technologies
Table 5. GHG (CO2) Emissions from Different Generation DG capacities of 30%, 50% and 60% of total load plus losses,
Technologies the voltage profile and the real power loss has been analyzed
and significant improvement in voltage profile and reduction
Life Cycle in line loss is observed. For optimal utilization, a DG capacity
Type of Emission Average Life Cycle should be chosen that it has to operate with the capacity of
Generation Emission in 60% of total load plus losses. Profits have been estimated in
gCO2eq/ kWhe
financial terms by performing NPV analysis for 20 years of
Technology gCO2eq/ kWhe
project period. It can be concluded that a distribution
Min ~ Max company will definitely make profit only if a suitable size DG
plant is strategically placed in the distribution system. For the
F.F. Coal 800~1000 900 implementation of project, a selection process is carried out
for suitable DG Technology and estimated the financial
Oil Fired 700~800 750 benefits by considering emission cost and outage cost of DG.
It is recognized that selection of technology represents only a
Natural Gas technical option. The underlying economic reality and
360~575 467 financial benefits will determine whether this option is used or
Fired
not. In view of financial benefits not all DG technologies are
suitable for implementation of the project. It is observed that
PV 50~73 61.5 greater use of renewable energy DG technologies can
significantly reduce the carbon intensity (CO2 emission) of
WT 8~30 19 electricity generation in power sectors that are dominated by
fossil fuel power plants. Please note that, while the underlying
Hydro 1~34 17.5 method and evaluation of DG in a radial distribution system
can be applied elsewhere. But, the financial results and
Bio-Mass 35~99 67 environmental benefits obtained in this study are purely
subjected to literature which cannot be generalized.
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International Journal of Computer Applications (0975 – 8887)
Volume 59– No.10, December 2012
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