A distribution system was designed and operated by considering unidirectional power flow from a utility source to end-use loads. The large penetrations of distributed generation (DG) into the existing distribution system causes a variety of technical problems, such as frequent tap changing problems of the on-load tap changer (OLTC) transformer, local voltage rise, protection coordination, exceeding short-circuit capacity, and harmonic distortion. In view of voltage regulation, the intermittent fluctuation of the DG output power results in frequent tap changing operations of the OLTC transformer. Thus, many utilities limit the penetration level of DG and are eager to find the reasonable penetration limits of DG in the distribution system. To overcome this technical problem, utilities have developed a new voltage regulation method in the distribution system with a large DG penetration level. In this paper, the impact of DG on the OLTC operations controlled by the line drop compensation (LDC) method is analyzed. In addition, a generalized determination methodology for the DG penetration limits in a distribution substation transformer is proposed. The proposed DG penetration limits could be adopted for a simplified interconnection process in DG interconnection guidelines.
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