Distribution Generation Cost-Benefit Model and Simulation Based on System Dynamics Take Photovoltaic Power Generation as an Example

Economic benefit analysis of distributed generation (DG) is helpful for the formulation and adjustment of the DG industry policy, and the dynamic visual simulation model couldimprove the accuracy in decision making. This paper first reviewed the domestic and foreign research status of distributed generation(DG） economic benefit, then analysed the direct benefits, indirect benefits and the costs of DG through the cost-benefit master model of DG set up by System Dynamics method. Meanwhile, each cost-benefit sub model is also provided. Finally simulation for 5 MW photovoltaic power station is carried out and its costs and benefits are presented. The validity of the model was verified for the results conforming to the anticipated target, the results also showed that subsidies had significant effects on the benefits of DG and the indirect benefits, especially carbon reduction benefit are obvious.