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The task of improving the supply quality and
maintaining supply continuity during emergencies has
become more feasible for a distribution company
(DISCO), owing to new developments in Distributed
Generation (DG) technologies. Even though the
technical issues regarding DG interconnection to the
main grid are of great importance and are being
addressed by on-going research, it must be clearly
placed in the context of on the financial performance of
the utility. In this paper, a general approach to quantify
the technical benefits of DG employment is proposed.
The power system economic impact is assessed by
evaluating supply quality, supply reliability, system
power losses and capital investment. Moreover, the
rationale for this research also includes the possibility of
DG diversity level in contribution to the economical
benefits from DG integration. The approach is tested by
a system which is developed from a Tasmanian
distribution example. Simulation results and discussion
are presented to illustrate the effectiveness and
usefulness of the method.