Fostering the adoption of DG and energy-efficiency actions in an energy planning study

In this paper, an optimisation procedure is proposed for evaluating the contribution of distributed generation (DG) production and energy-efficiency (EE) actions. A linear programming methodology based on Energy Flow Optimisation Model (EFOM) is adopted, detailing the primary energy sources exploitation, power and heat generation, emissions and end-use sectors. The model outline is enhanced in order to include the description of DG technologies and EE measures. In particular, a detailed description of the electric power grid is carried out, considering a subdivision in various voltage levels of electricity production and energy demand. Moreover, economic subsidies are taken into account to analyse the potential exploitation of DG and EE technologies. The methodology, aiming to reduce environmental impact and economic efforts, provides feasible generation settlements between large-scale generation and DG, and optimal diffusion of EE technologies. The proposed methodology is applied to a realistic energy system.