DISTRIBUTED GENERATION

• Overview and definition of DG

• Types of DG
• Benefits of DG
• Issues with DG

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 Overview of DG

The term distributed generation (DG) also called as on-

site/decentralized/dispersed generation is a term
describing the generation of electricity for use on-site,
rather than transmitting energy over electric grid from
a large centralized facility e.g hydro and coal-fired
power plants.

Distributed generation, for the moment loosely defined

as small-scale electricity generation, is a fairly new
concept in the electricity market.

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 Overview of DG
Power System Architecture

Present Trend Emerging Trend

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 Overview of DG

• Traditionally, the power system is divided into 4

levels i.e. power generation, transmission network,
distribution network and consumers.
• The new paradigm 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
neighbourhood users.

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 Overview of DG

▪ DG schemes provide solutions to two long standing

problems of power system operation:
• Non-availability of sufficient power generation
to meet peak demands at all times
• 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 number and size of DGs 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.

• This situation can create difficulties for the grid

operator, mainly due to the electrical protection
settings, voltage control and the possibility to have
portions of the network working in “island”
conditions.
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 Overview of DG
Cost Trend for Power Generation

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 Definition of DG

• For the time being, there is no single definition of DG

accepted globally by electrical communities.
• A large number of terms and definitions are used in
relation to distributed generation.
• The variations among communities in defining DG can
be divided into few major aspects:
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 as well as active power.
2. Location
▪ The definition of DG location varies among
different authors. Most authors define the
location of DG at the distribution side of the
network, some authors also include the
customers side, and some 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 both electricity (capacity
300 MW) as well as district heat (capacity 300
MW). This shows that DG can vary between a
couple of kilowatts to up to 300 MW.

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 Definition of DG

3. Size
▪ 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 term DG is used in combination with
a certain generation technology category, e.g.
renewable energy technology. However, other
authors 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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 DG BENEFITS

Among the benefits offered by DG:

1. Standby capacity or peak use capacity (peak
shaving)
▪ Many DG technologies are indeed flexible in
several respects: operation, size and
expandability. For example, making use of
distributed generation allows reacting in a
flexible way to electricity price evolutions.

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 DG BENEFITS

2. Alternative to expansion or use of the local

network
▪ 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

3. Reliability and voltage stability

▪ It also provides a solution to the unpredictable
event of power interruption from the electric
utility. For example when a major fault occurs.
DG could possibly keep portions of the
network working in “island” condition and thus
reduce the number of users affected by the
power-off event.
▪ In areas where voltage support is needed,
generally connecting DG leads to a rise in
voltage in the network.
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 DG BENEFITS

4. Grid support
▪ DG contributes in providing ancillary services
to maintain a stable operation of the grid.
• For instance when grid is experiencing
under-capacity condition due to excess in
demand or unplanned power plant turned-
off (technical problems). DG can provide the
needed power to stabilize the power
demand.

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 DG BENEFITS

5. Reduce power loss

▪ One more benefit is related to the power loss
reduction on the electrical lines. Indeed having
the power generation source closer to the
users, allows to reduce the power traveling on
the electrical line and it results in loss
reduction.

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 DG Issues

Issues with high DG installation level:

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 levels, 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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