ABSTRACT
This chapter begins with a review of the various aspects of Distributed generators (DG) that need to be included in any evaluation of cost and performance. A simple case study is then used to illustrate how these are considered in an economic evaluation of both short-term and long-term cost. Cost is one of the most important elements in nearly all distributed generation evaluations, although alone, it is insufficient for complete evaluation. Both reliability and power quality are also essential elements of the decision on if DG should be selected. Thus, evaluation of cost is usually the critical element in a DG planning evaluation. The most important goal is to include a comprehensive assessment of all costs involved, both for every DG alternative and for any transmission and distribution options to which they are being compared. In some types of DG planning, certain aspects of the DG unit can be considered “variable” or “fixed” depending on the perspective of the planners.
