DG’s have existed in the market for many years. The main criteria for selecting the type of fuel source for a DG is its local availability, conversion system technological advancement, impact on the environment, and operating cost. From the integrated resource planning point of view, a feasible and economical remedy is, therefore, to utilize existing dispersed generation capacity known as distributed generation (DG) and/or renewable energy resources that may exist in the vicinity of the load centers. The expansion of traditional services not only imposes burdens on financial resources but also encounters many challenges from community residents who oppose the construction of new power generation plants or transmission facilities in their backyard. Demand for electricity is rapidly increasing thereby applying pressure to expand generation and distribution capacity worldwide.
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