Quantification of the Distribution Transformer Life Extension Value of Distributed Generation

Despite the technical challenges in properly accommodating distributed-generation (DG) units, one of the major benefits is the ability of DG units to extend useful life time of distribution transformers. It is, however, poorly represented in the existing literature. This paper presents a novel approach to quantify the economic benefits of distribution transformer life extension brought about by customer-owned DG units. The proposed approach is applied to actual distribution transformers installed in five sample cities in Iran to provide realistic estimates of the created benefits in monetary terms. The analysis is performed to determine the impact that different penetration levels of DG technologies may have on the realized benefits. The results show that the economic benefits follow an exponential-shaped trajectory, as a function of DG penetration level. Regarding DG technologies, it should be noted that microturbines and wind turbines emerge as the most promising technologies from the perspective of distribution utility by creating millions of dollars in benefits for the entire distribution transformer population installed.