I. Introduction
In classical power systems, large power generation plants are located at adequate geographical places to produce most of the power, which is then transferred towards large consumption centers over long distance transmission lines. Now the power system is changing, as a large number of dispersed generation (DG) units, including both renewable and non-renewable sources such as wind turbines, wave generators, photovoltaic (PV) generators, small hydro, fuel cells and gas/steam powered Combined Heat and Power (CHP) stations, are being developed and installed all over the world [1]–[2]. A wide-spread use of renewable energy sources in distribution networks is seen. E.g. Denmark has a high power capacity penetration (> 30 %) of wind energy in major areas of the country and today 28 % of the whole electrical energy consumption is covered by wind energy. The main advantages of using renewable energy sources are the elimination of harmful emissions and the inexhaustible resources of the primary energy. However, the main disadvantage, apart from the higher costs is the uncontrollability as they are completely weather-based. The availability of renewable energy sources has strong daily and seasonal patterns and the power demand by the consumers could have a very different characteristic. Therefore, it is difficult to operate a power system installed with only renewable generation units due to the characteristic differences and the high uncertainty in the availability of the renewable energy sources without any load control. This is further strengthened as no real large scale electrical energy storage systems exist.
Major parts of this paper was presented at EPE-PEMC 2010, Ohrid, Macedonia.