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The increase of DG presence in distribution network is the immediate result of technology development and power crisis in the world. Nowadays, renewable energy sources and high efficiency electrical systems (combined heat and power generation) are of great demand all over the world. However, exploitation systems and traditional managing of industry have led to a misunderstanding of DG benefits. In this paper, some indexes for evaluating environmental benefits of DG are considered. Then, a new mathematical method is introduced to have better calculations of the costs of power generation from renewable sources based on the environmental indexes. In this method there are negative points for each environmental pollutant and the additional costs of their distribution is also added to the generation costs of the systems producing these pollutants. This approach may help to tackle the environmental menace of these pollutants and subsequently on human health.

Keywords

Air Pollution, Distributed Generation (DG), Distribution Network, Environment, Generation Costs
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