Distributed Generation
• Definition of DG
• An Overview of Concept
• Benefits of DG
• Issues with DG
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Definition of DG
• For the time being, there is no single definition of
DG accepted globally by electrical communities.
Distributed generation (DG) is loosely defined as a
small-scale electricity generation unit.
• Also known as on-site/decentralized/dispersed
generation describing the generation of electricity
for use on-site, rather than transmitting energy over
electric grid from a large centralized power plants
e.g hydro and coal-fired.
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Definition of DG
• A large number of terms and definitions are used in
relation to DG.
• The variations among communities in defining DG can
be divided into:
1. Purpose
2. Location
3. Size
4. Technology
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Definition of DG
1. Purpose
Differences in the purpose of DG either as a source
of active power only or to be able to provide
reactive power and active power.
2. Location
The definition of DG location varies among
different authorities. Many define the location of
DG is within distribution networks or on the
customer side of the network however others even
include the transmission side of the network.
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Definition of DG
3. Size
▪ In US, the Electric Power Research Institute
defines distributed generation as generation
from a few kilowatts up to 50 MW.
▪ In Berlin, local utility BEWAG built a CCGT
power station in the centre of the city. The
power plant produces electricity capacity of
300 MW as well as heat capacity of 300 MW. It
shows that DG can vary between a couple of
kW to hundreds of MW.
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Definition of DG
▪ The suggested categories of DG size by Thomas
Ackermann, Go¨ran Andersson and Lennart
So¨der
▪ Micro : 1 Watt - 5 kW
Small : 5 kW - 5 MW
Medium : 5 MW - 50 MW
Large : 50 MW - 300 MW
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Definition of DG
4. Technology
▪ Often the DG term is used in combination with
a certain generation technology category, e.g.
renewable energy technology. However, some
countries do not put limit to the type of
technology used in generating power.
▪ The suggested categories of DG size by Thomas
Ackermann, Go¨ran Andersson and Lennart
So¨der:
• Renewable, non-renewable and combined
heat power technologies.
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DG Types
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Overview of Concept
Power System Architecture
Present Trend Emerging Trend
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Overview of Concept
• Traditionally, the power system is divided into 4
levels i.e. power generation, transmission network,
distribution network and consumers.
• DG is a fairly new concept in the electricity market.
The new concept is to have users who normally are
the consumers of power can also become the
producers of power (basic idea of DG).
• The energy generated by the user is usually
consumed locally by the user or by the close
neighborhood users.
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Overview of DG
▪ DG scheme provides solutions to TWO long
standing problems of power system operation:
1) Non-availability of sufficient power generation
to meet peak demands at all times.
2) The lack of capacity of existing transmission
lines to carry all the electricity needed by
consumers.
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Overview of DG
• However, when the numbers and sizes of DG are
too large, the flow of power generated can go to
the upstream network from distribution to
transmission system changing completely the
“classic” power flow.
• The situation can create difficulties to the grid
operator mainly to the electrical protection
settings and voltage control. Also, the possibility
to create portions of the network working in
“island” condition.
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Overview of DG
Cost Trend for Power Generation
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DG BENEFITS
Among the potential benefits are:
1. Standby capacity or peak use capacity
(peak shaving) – economic and technical
benefits
Many DG technologies are indeed flexible in
several respects: operation, size and expandability.
DG power can be used to serve loads during peak
hours and this allows to lower operating costs due
to peak shaving initiative.
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DG BENEFITS
2. Security and voltage stability – technical
benefit
▪ DG enhances the security of electric power
supply. In the event of sudden or unexpected
failure of utilities, DG could possibly keep
portions of the network working in “island”
condition thus reduce the number of users
affected by the power-off event.
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DG BENEFITS
In general, islanding or also called ‘micro-grid’ is a
condition in which a DG is operating isolated from the
utility. This scenario could occur during power
interruption.
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DG BENEFITS
2. Security and voltage stability – technical
benefit
▪ In areas where voltage support is difficult, DG
can contribute because connecting DG
generally leads to a rise in voltage in the
network.
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DG BENEFITS
3. Grid support – technical benefit
DG can provide the needed power to stabilize the
dropping frequency. For instance when grid is
experiencing under-capacity condition due to
excess in demand or sudden under capacity due
to unplanned power plant turned – off.
4. Reduce power loss
With power generation source placed closer to the
users, it reduces the power travelling distance on
the electrical line and results in loss reduction.
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DG BENEFITS
5. Avoid expansion of local network –
economic benefits
▪ DG could serve as a substitute for investments in
transmission and distribution capacity
▪ According to the International Energy Agency
(IEA) in US, on-site production could result in cost
savings in transmission and distribution of about
30% of electricity costs.
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DG BENEFITS
6. Climate and health concerns– environmental
benefit
DG reduces the health care costs due to
improved environment and reduces fuel costs
due to increased overall efficiency.
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DG Issues
Issues with DG installations:
1. Change in power flow
Power usually flows from higher to lower
voltage levels, i.e. from the transmission to the
distribution grid. An increased share of DG
units may induce power flow from the low-
voltage into high-voltage grid. Thus, different
protection schemes at both voltage levels may
be required.
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DG Issues
2. Power quality issue
Some distributed generation technologies (PV,
fuel cells) produce direct current. Thus, these
units must be connected to the grid via a DC-
AC interface, which may contribute to higher
harmonics.
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Conclusion
At low percentage level, the DG may not
present a risk to power system operation;
however as the amount of DG increases, the
effect of these resources can present certain
operation challenges that require further
attention. This leads to studies to better
understand the impacts.
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