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{{Short description|Decentralised electricity generation}}
{{Use dmy dates|date=
[[File:Staying big or getting smaller.jpg|thumb|500px|Centralized (left) vs distributed generation (right)]]
'''Distributed generation''', also '''distributed energy''', '''on-site generation''' ('''OSG'''),<ref name=EonOsg>{{cite web|title=On Site Generation: Learn more about our onsite renewable energy generation technologies|url=https://www.eonenergy.com/for-your-business/large-energy-users/manage-energy/on-site-generation|publisher=E.ON SE|access-date=17 December 2015}}</ref> or '''district/decentralized energy''', is electrical [[Power generation|generation]] and [[Grid energy storage|storage]] performed by a variety of small, [[Electrical grid|grid]]-connected or distribution system-connected devices referred to as '''distributed energy resources''' ('''DER''').<ref name="DG-virginia-tech">{{cite web |url=http://www.dg.history.vt.edu/ch1/introduction.html |title=Introduction to Distributed Generation |work=[[Virginia Tech]] |year=2007 |access-date=23 October 2017 |archive-date=10 December 2018 |archive-url=https://web.archive.org/web/20181210181948/https://www.dg.history.vt.edu/ch1/introduction.html |url-status=dead }}</ref>
Conventional [[power station]]s, such as [[coal]]-fired, [[combined cycle|gas]], and [[nuclear power]]ed plants, as well as [[hydroelectric]] dams and large-scale [[photovoltaic power station|solar power station]]s, are centralized and often require electric energy to be [[Electric power transmission|transmitted]] over long distances. By contrast, DER systems are decentralized, modular, and more flexible technologies that are located close to the load they serve, albeit having capacities of only 10 [[megawatt]]s (MW) or less. These systems can comprise multiple generation and storage components; in this instance, they are referred to as [[hybrid power]] systems.<ref>{{cite web|url=https://www.atulhost.com/empowering-the-future-with-distributed-energy-resources|title=Empowering the future with distributed energy resources|year=2023}}</ref>
DER systems typically use [[renewable energy]] sources, including [[small hydro]], [[biomass]], [[biogas]], [[solar power]], [[wind power]], and [[geothermal power]], and increasingly play an important role for the [[electric power distribution]] system. A grid-connected device for [[Grid energy storage|electricity storage]] can also be classified as a DER system and is often called a '''distributed energy storage system''' ('''DESS''').<ref>{{cite journal |last1=Nadeem |first1=Talha Bin |last2=Siddiqui |first2=Mubashir |last3=Khalid |first3=Muhammad |last4=Asif |first4=Muhammad |title=Distributed energy systems: A review of classification, technologies, applications, and policies |journal=Energy Strategy Reviews |date=2023 |volume=48 |article-number=101096 |doi=10.1016/j.esr.2023.101096 |doi-access=free|bibcode=2023EneSR..4801096N }}</ref> By means of an interface, DER systems can be managed and coordinated within a [[smart grid]]. Distributed generation and storage enables the collection of energy from many sources and may lower environmental impacts{{Citation needed|date=November 2024|reason=small diesel generators can be very polluting}} and improve the security of supply.<ref>{{Cite news |last=Koshiw |first=Isobel |date=2024-04-08 |title=Russia changes tack on targeting Ukraine's energy plants |url=https://www.ft.com/content/18882abd-6277-4aae-bc43-f3e5fa786445 |access-date=2024-11-29 |work=Financial Times|___location=London}}</ref>
One of the major issues with the integration of the DER such as solar power, wind power, etc. is the uncertain nature of such electricity resources. This uncertainty can cause a few problems in the distribution system: (i) it makes the supply-demand relationships extremely complex, and requires complicated optimization tools to balance the network, and (ii) it puts higher pressure on the transmission network,<ref>{{Cite journal|last1=Mohammadi Fathabad|first1=Abolhassan|last2=Cheng|first2=Jianqiang|last3=Pan|first3=Kai|last4=Qiu|first4=Feng|date=2020|title=Data-driven Planning for Renewable Distributed Generation in Distribution Systems
[[Microgrid]]s are modern, localized, small-scale grids,<ref>{{Cite
{{TOC limit|3}}
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== Overview ==
Historically, central plants have been an integral part of the electric grid, in which large generating facilities are specifically located either close to resources or otherwise located far from populated [[Distribution board|load centers]]. These, in turn, supply the traditional transmission and distribution (T&D) grid that distributes bulk power to load centers and from there to consumers. These were developed when the costs of transporting fuel and integrating generating technologies into populated areas far exceeded the cost of developing T&D facilities and tariffs. Central plants are usually designed to take advantage of available economies of scale in a site-specific manner, and are built as "one-off
These [[economies of scale]] began to fail in the late 1960s and, by the start of the 21st century, Central Plants could arguably no longer deliver competitively cheap and reliable electricity to more remote customers through the grid, because the plants had come to cost less than the grid and had become so reliable that nearly all power failures originated in the grid. {{Citation needed|date=February 2012}} Thus, the grid had become the main driver of remote
For example, [[Fossil fuel power station|coal power plants]] are built away from cities to prevent their heavy air pollution from affecting the populace. In addition, such plants are often built near [[Colliery|collieries]] to minimize the cost of transporting coal. [[Hydroelectricity|Hydroelectric]] plants are by their nature limited to operating at sites with sufficient water flow.
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# Along with higher relative prices for energy, higher overall complexity and total costs for regulatory oversight, tariff administration, and metering and billing.
Capital markets have come to realize that right-sized resources, for individual customers, distribution substations, or microgrids, are able to offer important but little-known economic advantages over central plants. Smaller units
While the [[levelized cost of electricity|levelized cost]] of DG is typically more expensive than conventional, centralized sources on a kilowatt-hour basis, this does not consider negative aspects of conventional fuels. The additional premium for DG is rapidly declining as demand increases and technology progresses,
DG reduces the amount of energy lost in transmitting electricity because the electricity is generated very near where it is used, perhaps even in the same building. This also reduces the size and number of power lines that must be constructed.
Typical DER systems in a [[feed-in tariff]] (FIT) scheme have low maintenance, low pollution and high efficiencies. In the past, these traits required dedicated operating engineers and large complex plants to reduce pollution. However, modern [[embedded system]]s can provide these traits with automated operation and [[renewable energy]], such as [[Solar energy|solar]], [[Wind power|wind]] and [[Geothermal power|geothermal]]. This reduces the size of power plant that can show a profit.
=== Cybersecurity ===
Vulnerabilities in control systems from a single vendor used at thousands of installations of given source can result in hacking and remotely disabling all these sources by a single attacker, thus largely reversing the benefits of decentralised generation, which has been demonstrated in practice in case of solar power inverters<ref>{{Cite news |date=2024-12-12 |title=Hacking Rooftop Solar Is a Way to Break Europe's Power Grid |url=https://www.bloomberg.com/news/articles/2024-12-12/europe-s-power-grid-vulnerable-to-hackers-exploiting-rooftop-solar-panels |access-date=2024-12-12 |publisher=Bloomberg News |language=en}}</ref><ref>{{Cite web |date=2024-08-19 |title=The gigantic and unregulated power plants in the cloud |url=https://berthub.eu/articles/posts/the-gigantic-unregulated-power-plants-in-the-cloud/ |access-date=2024-12-12 |website=Bert Hubert's writings}}</ref> and wind power control systems.<ref>{{Cite web |last=Tam |first=Kimberly |date=2024-09-05 |title=How cyberattacks on offshore wind farms could create huge problems |url=https://theconversation.com/how-cyberattacks-on-offshore-wind-farms-could-create-huge-problems-238165 |access-date=2024-12-12 |website=The Conversation |language=en-US}}</ref> In November 2024 Deye and Sol-Ark inverter manufacturer remotely disabled in some countries due to alleged regional sales policy dispute. The companies later claimed the blockage was not remote but due to [[Geofence|geofencing]] mechanisms built into the inverters.<ref>{{Cite web |last=online |first=heise |date=2024-11-30 |title=Photovoltaics: Deactivated Deye and Sol-Ark inverters in the USA |url=https://www.heise.de/en/news/Photovoltaics-Deactivated-Deye-and-Sol-Ark-inverters-in-the-USA-10183716.html |access-date=2024-12-12 |website=heise online |language=en}}</ref>
EU NIS2 directive expands the cybersecurity requirements to the energy generation market,<ref>{{Cite web |title=Energy |url=https://nis2directive.eu/energy/ |access-date=2024-12-12 |website=The NIS2 Directive |language=en-US}}</ref> which has faced backlash from renewable energy lobby groups.<ref>{{Cite web |last=O’Sullivan |first=Alexander Lipke, Janka Oertel, Daniel |date=2024-05-29 |title=Trust and trade-offs: How to manage Europe's green technology dependence on China |url=https://ecfr.eu/publication/trust-and-trade-offs-how-to-manage-europes-green-technology-dependence-on-china/ |access-date=2024-12-12 |website=ECFR |language=en-GB}}</ref>
=== Grid parity ===
[[Grid parity]] occurs when an [[alternative energy]] source can generate electricity at a levelized cost ([[LCOE]]) that is less than or equal to the end consumer's retail price. Reaching grid parity is considered to be the point at which an energy source becomes a contender for widespread development without [[subsidy|subsidies]] or government support. Since the 2010s, grid parity for solar and wind has become a reality in a growing number of markets, including Australia, several European countries, and some states in the U.S.<ref name=wp-grid-parity-2014>{{cite
|last1=McFarland
|first1=Matt
|title=Grid parity: Why electric utilities should struggle to sleep at night
|url=https://www.washingtonpost.com/blogs/innovations/wp/2014/03/25/grid-parity-why-electric-utilities-should-struggle-to-sleep-at-night/
|newspaper=The Washington Post
▲ |access-date=14 September 2014
|archive-url=https://web.archive.org/web/20140818111118/http://www.washingtonpost.com/blogs/innovations/wp/2014/03/25/grid-parity-why-electric-utilities-should-struggle-to-sleep-at-night/
|archive-date=18 August 2014
|date=25 March 2014
|url-status=dead
}}</ref>{{Update inline|date=August 2024}}
== Technologies ==
Distributed energy resource ('''DER''') systems are small-scale power generation or storage technologies (typically in the range of 1 kW to 10,000 kW)<ref name=nrel-using-der>{{cite web
|title=Using Distributed Energy Resources
|url=http://www.nrel.gov/docs/fy02osti/31570.pdf
|website=
|publisher=NREL
|access-date=8 September 2014
|archive-url=https://web.archive.org/web/20140908085049/http://www.nrel.gov/docs/fy02osti/31570.pdf
|archive-date=8 September 2014
|page=1
|year=2002
|url-status=dead
}}</ref> used to provide an alternative to or an enhancement of the traditional electric power system. DER systems typically are characterized by high initial [[capital
▲}}</ref> used to provide an alternative to or an enhancement of the traditional electric power system. DER systems typically are characterized by high initial [[capital costs]] per kilowatt.<ref>http://www.NREL.gov [http://www.nrel.gov/docs/fy02osti/32459.pdf Distributed Energy Resources Interconnection Systems: Technology Review and Research Needs], 2002</ref> DER systems also serve as storage device and are often called ''Distributed energy storage systems'' (DESS).<ref name="smartgrid-gov-lexicon" />
DER systems may include the following devices/technologies:
* [[Combined heat power]] (CHP),<ref>{{Cite journal|last1=Du|first1=R.|last2=Robertson|first2=P.|date=2017|title=Cost Effective Grid-Connected Inverter for a Micro Combined Heat and Power System|journal=IEEE Transactions on Industrial Electronics|volume=64|issue=7|pages=5360–5367|doi=10.1109/TIE.2017.2677340|s2cid=1042325|issn=0278-0046|url=https://www.repository.cam.ac.uk/handle/1810/263361}}</ref> also known as ''cogeneration'' or ''trigeneration''
* [[Fuel cells]]
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=== Cogeneration ===
Distributed [[cogeneration]] sources use steam turbines, natural gas-fired [[fuel cell]]s, [[microturbine]]s or [[reciprocating engine]]s<ref>[http://www.clarke-energy.com/chp-cogeneration/ Gas engine cogeneration], http://www.clarke-energy.com, retrieved 9.12.2013</ref> to turn generators. The hot exhaust is then used for space or [[water heating]], or to drive an [[absorptive chiller]]<ref>{{cite web|url=http://www.buderus.de/Ueber_uns/Presse/Fachpresse/Anlagen_zur_Kraft_Waerme_Kopplung/Heiss_auf_kalt-2119341.html|title=Heiß auf kalt|access-date=15 May 2015|archive-date=18 May 2015|archive-url=https://web.archive.org/web/20150518102403/http://www.buderus.de/Ueber_uns/Presse/Fachpresse/Anlagen_zur_Kraft_Waerme_Kopplung/Heiss_auf_kalt-2119341.html|url-status=dead}}</ref><ref>[http://www.clarke-energy.com/gas-engines/trigeneration/ Trigeneration with gas engines], http://www.clarke-energy.com, retrieved 9.12.2013</ref> for cooling such as [[air-conditioning]]. In addition to natural gas-based schemes, distributed energy projects can also include other renewable or low carbon fuels including biofuels, [[biogas]], [[landfill gas]], [[sewage gas]], [[coal bed methane]], [[syngas]] and [[associated petroleum gas]].<ref>[http://www.clarke-energy.com/gas-engines/ Gas engine applications], [http://www.clarke-energy.com], retrieved 9 December 2013</ref>
Delta-ee consultants stated in 2013 that with 64% of global sales, the fuel cell [[micro combined heat and power]] passed the conventional systems in sales in 2012.<ref>{{cite report|url = http://www.fuelcelltoday.com/media/1889744/fct_review_2013.pdf |title= The fuel cell industry review 2013|publisher = FuelCellToday.com|archiveurl = https://web.archive.org/web/20131007223834/http://www.fuelcelltoday.com/media/1889744/fct_review_2013.pdf|archivedate = 7 October 2013}}</ref> 20.000 units were sold in [[Japan]] in 2012 overall within the Ene Farm project. With a [[Service life|Lifetime]] of around 60,000 hours for [[
In addition, [[molten carbonate fuel cell]] and [[solid oxide fuel cell]]s using natural gas, such as the ones from [[FuelCell Energy]] and the [[Bloom energy server]], or waste-to-energy processes such as the Gate 5 Energy System are used as a distributed energy resource.
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The predominant PV technology is [[crystalline silicon]], while [[thin-film solar cell]] technology accounts for about 10 percent of global photovoltaic deployment.<ref name="Fraunhofer-PR-2014">
{{cite web |date=28 July 2014 |title=Photovoltaics Report |url=http://www.ise.fraunhofer.de/en/downloads-englisch/pdf-files-englisch/photovoltaics-report-slides.pdf |url-status=live |archive-url=https://web.archive.org/web/20140809192020/http://www.ise.fraunhofer.de/en/downloads-englisch/pdf-files-englisch/photovoltaics-report-slides.pdf |archive-date=9 August 2014 |access-date=31 August 2014 |publisher=Fraunhofer ISE |pages=18–19}}
</ref>
{{cite web
|
|url-status=live▼
▲</ref>{{rp|18,19}} In recent years, PV technology has improved its sunlight to electricity [[Solar cell efficiency|conversion efficiency]], reduced the installation [[Price per watt|cost per watt]] as well as its [[energy payback time]] (EPBT) and [[levelised cost of electricity]] (LCOE), and has reached [[grid parity]] in at least 19 different markets in 2014.<ref>
▲ |last1=Parkinson
▲ |first1=Giles
▲ |title=Deutsche Bank predicts second solar "gold-rush"
▲ |url=http://reneweconomy.com.au/2014/deutsche-bank-predicts-second-solar-gold-rush-40084
▲ |work=REnewEconomy
|access-date=14 September 2014 ▼
|archive-url=https://web.archive.org/web/20140628163703/http://reneweconomy.com.au/2014/deutsche-bank-predicts-second-solar-gold-rush-40084
|archive-date=28 June 2014
|date=7 January 2014
|url-status=dead
}}</ref>
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=== Wind power ===
{{
[[Wind turbine]]s can be distributed energy resources or they can be built at utility scale. These have low maintenance and low pollution, but distributed wind unlike utility-scale wind has much higher costs than other sources of energy.<ref>{{Cite web|title = NREL: Energy Analysis
=== Hydro power ===
{{
Hydroelectricity is the most widely used form of renewable energy and its potential has already been explored to a large extent or is compromised due to issues such as environmental impacts on fisheries, and increased demand for recreational access. However, using modern 21st century technology, such as [[wave power]], can make large amounts of new hydropower capacity available, with minor environmental impact.
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=== Waste-to-energy ===
{{
Municipal solid waste (MSW) and natural waste, such as sewage sludge, [[food waste]] and animal manure will decompose and discharge methane-containing gas that can be collected and used as fuel in gas turbines or micro turbines to produce electricity as a distributed energy resource. Additionally, a California-based company, Gate 5 Energy Partners, Inc. has developed a process that transforms natural waste materials, such as sewage sludge, into biofuel that can be combusted to power a steam turbine that produces power. This power can be used in lieu of grid-power at the waste source (such as a treatment plant, farm or dairy).
=== Energy storage ===
{{
A distributed energy resource is not limited to the generation of electricity but may also include a device to store distributed energy (DE).<ref name="smartgrid-gov-lexicon">http://www.smartgrid.gov [https://www.smartgrid.gov/lexicon/6/letter_d Lexicon Distributed Energy Resource] {{Webarchive|url=https://web.archive.org/web/20171206030230/https://www.smartgrid.gov/ |date=6 December 2017 }}</ref> Distributed energy storage systems (DESS) applications include several types of battery, [[Pumped-storage hydroelectricity|pumped hydro]], [[Compressed air energy storage|compressed air]], and [[thermal energy storage]].<ref name="nrel-storage" />{{rp|42}} Access to energy storage
==== PV storage ====
: Common [[rechargeable battery]] technologies used in today's PV systems include, the [[valve regulated lead-acid battery]] ([[lead–acid battery]]), [[nickel–cadmium battery|nickel–cadmium]] and [[lithium-ion batteries]]. Compared to the other types, lead-acid batteries have a shorter lifetime and lower energy density. However, due to their high reliability, low [[self-discharge]] (4–6% per year) as well as low investment and maintenance costs, they are currently the predominant technology used in small-scale, residential PV systems, as lithium-ion batteries are still being developed and about 3.5 times as expensive as lead-acid batteries. Furthermore, as storage devices for PV systems are stationary, the lower energy and power density and therefore higher weight of lead-acid batteries are not as critical as for [[electric vehicle]]s.<ref name=ethz-harvard>{{cite web |publisher=ETH Zürich, Harvard University |url=https://www.researchgate.net/publication/264239770 |title=The Economic Viability of Battery Storage for Residential Solar Photovoltaic Systems
: However, lithium-ion batteries, such as the [[Tesla Powerwall]], have the potential to replace lead-acid batteries in the near future, as they are being intensively developed and lower prices are expected due to economies of scale provided by large production facilities such as the [[Gigafactory 1]]. In addition, the Li-ion batteries of plug-in [[electric car]]s may serve as future storage devices, since most vehicles are parked an average of 95 percent of the time, their batteries could be used to let electricity flow from the car to the power lines and back. Other rechargeable batteries that are considered for distributed PV systems include, [[Sodium–sulfur battery|sodium–sulfur]] and [[Vanadium redox battery|vanadium redox]] batteries, two prominent types of a [[Molten salt battery|molten salt]] and a [[Flow battery|flow]] battery, respectively.<ref name=ethz-harvard />{{rp|4}}
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==== Vehicle-to-grid ====
: Future generations of electric vehicles may have the ability to deliver power from the battery in a [[vehicle-to-grid]] into the grid when needed.<ref>{{cite web|url=http://www.energydsm.com/distributed-generation|title=Energy VPN Blog|access-date=15 May 2015|archive-url=https://web.archive.org/web/20120412020042/http://www.energydsm.com/distributed-generation|archive-date=12 April 2012|url-status=dead}}</ref> An [[electric vehicle network]] has the potential to serve as a DESS.<ref name="nrel-storage">http://www.NREL.gov [http://www.nrel.gov/docs/fy10osti/47187.pdf
==== Flywheels ====
: An advanced [[flywheel energy storage]] (FES) stores the electricity generated from distributed resources in the form of angular [[kinetic energy]] by accelerating a rotor ([[flywheel]]) to a very high speed of about 20,000 to over 50,000 rpm in a vacuum enclosure. Flywheels can respond quickly as they store and feed back electricity into the grid in a matter of seconds.<ref name="ScienceNews">{{Cite journal
| last1 = Castelvecchi
| first1 = Davide | title = Spinning into control: High-tech reincarnations of an ancient way of storing energy
| doi = 10.1002/scin.2007.5591712010
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| date = 19 May 2007
| url = http://sciencewriter.org/flywheels-spinning-into-control/
| archive-date = 6 June 2014
| archive-url = https://web.archive.org/web/20140606223717/http://sciencewriter.org/flywheels-spinning-into-control/
| url-access = subscription
}}</ref><ref>{{cite web
|last1=Willis
|first1=Ben
|title=Canada's first grid storage system launches in Ontario
|url=http://storage.pv-tech.org/news/canadas-first-grid-storage-system-launches-in-ontario
|website=storage.pv-tech.org/
|publisher=pv-tech.org
|access-date=12 September 2014
|archive-url=https://web.archive.org/web/20140831005958/http://storage.pv-tech.org/news/canadas-first-grid-storage-system-launches-in-ontario
|archive-date=31 August 2014
|date=23 July 2014
|url-status=dead
}}</ref>
== Integration with the grid ==
For reasons of reliability, distributed generation resources would be interconnected to the same transmission grid as central stations. Various technical and economic issues occur in the integration of these resources into a grid. Technical problems arise in the areas of [[power quality]], voltage stability, harmonics, reliability, protection, and control.<ref>{{cite web |title=Contribution to Bulk System Control and Stability by Distributed Energy Resources connected at Distribution Network |url=http://resourcecenter.ieee-pes.org/pes/product/technical-publications/PESTRPDFMRH0022 |publisher=IEEE PES Technical Report |date=15 January 2017 |access-date=15 May 2019 |archive-date=15 May 2019 |archive-url=https://web.archive.org/web/20190515082823/http://resourcecenter.ieee-pes.org/pes/product/technical-publications/PESTRPDFMRH0022 |url-status=dead }}</ref><ref>Tomoiagă, B.; Chindriş, M.; Sumper, A.; Sudria-Andreu, A.; Villafafila-Robles, R. [http://www.mdpi.com/1996-1073/6/3/1439/pdf Pareto Optimal Reconfiguration of Power Distribution Systems Using a Genetic Algorithm Based on NSGA-II.] Energies 2013, 6, 1439-1455.</ref> Behavior of protective devices on the grid must be examined for all combinations of distributed and central station generation.<ref>P. Mazidi, G. N. Sreenivas; ''Reliability Assessment of A Distributed Generation Connected Distribution System''; International Journal of Power System Operation and Energy Management(IJPSOEM), Nov. 2011</ref> A large scale deployment of distributed generation may affect grid-wide functions such as frequency control and allocation of reserves.<ref>Math H. Bollen, Fainan Hassan ''Integration of Distributed Generation in the Power System'', John Wiley & Sons, 2011
{{ISBN|1-118-02901-1}}, pages v-x</ref> As a result, [[smart grid]] functions, [[virtual power plant]]s
Each distributed generation resource has its own integration issues. Solar PV and wind power both have intermittent and unpredictable generation, so they create many stability issues for voltage and frequency. These voltage issues affect mechanical grid equipment, such as load tap changers, which
Finally, another ▲== Mitigating Voltage and Frequency Issues of DG integration ==
There have been some efforts to mitigate voltage and frequency issues due to increased implementation of DG. Most notably, IEEE 1547 sets the standard for interconnection and interoperability of distributed energy resources. IEEE 1547 sets specific curves signaling when to clear a fault as a function of the time after the disturbance and the magnitude of the voltage irregularity or frequency irregularity.<ref>{{cite report |title=Performance of Distributed Energy and Resources During and After System Disturbance on|date=December 2013}}</ref> Voltage issues also give legacy equipment the opportunity to perform new operations. Notably, inverters can regulate the voltage output of DGs. Changing inverter impedances can change voltage fluctuations of DG, meaning inverters have the ability to control DG voltage output.<ref>{{cite report |title=Advanced Control Technologies for Distribution Grid Voltage and Stability With Electric Vehicles and Distributed Generation on|date=March 2015|pages = 48–50 }}</ref> To reduce the effect of DG integration on mechanical grid equipment, transformers and load tap changers have the potential to implement specific tap operation vs. voltage operation curves mitigating the effect of voltage irregularities due to DG. That is, load tap changers respond to voltage fluctuations that last for a longer period than voltage fluctuations created from DG equipment.<ref>{{cite report |title=Optimal OLTC Voltage Control Scheme High Solar Penetrations on|date = April 2018|pages = 7–9 }}</ref>
== Stand alone hybrid systems ==
It is now possible to combine technologies such as [[photovoltaics]], [[Battery (electricity)|batteries]] and [[
Recent work has shown that such systems have a low [[levelized cost of electricity]].<ref>{{cite journal | last1 = Mundada | first1 = Aishwarya | last2 = Shah | first2 = Kunal | last3 = Pearce | first3 = Joshua M. | year = 2016 | title = Levelized cost of electricity for solar photovoltaic, battery and cogen hybrid systems | url = https://www.academia.edu/20141118 | journal = Renewable and Sustainable Energy Reviews | volume = 57 | pages = 692–703 | doi=10.1016/j.rser.2015.12.084| bibcode = 2016RSERv..57..692M | s2cid = 110914380 }}</ref>
Many authors now think that these technologies may enable a mass-scale [[grid defection]] because consumers can produce electricity using [[off grid]] systems primarily made up of [[solar photovoltaic]] technology.<ref>Kumagai, J., 2014. The rise of the personal power plant. IEEE Spectrum,51(6), pp.54-59.</ref><ref>Abhilash Kantamneni, Richelle Winkler, Lucia Gauchia, Joshua M. Pearce, [https://www.academia.edu/25363058/Emerging_Economic_Viability_of_Grid_Defection_in_a_Northern_Climate_Using_Solar_Hybrid_Systems free open access Emerging economic viability of grid defection in a northern climate using solar hybrid systems]. ''Energy Policy'' '''95''', 378–389 (2016). doi: 10.1016/j.enpol.2016.05.013</ref><ref>Khalilpour, R. and Vassallo, A., 2015. Leaving the grid: An ambition or a real choice?. Energy Policy, 82, pp.207-221.</ref> For example, the Rocky Mountain Institute has proposed that there may wide scale [[grid defection]].<ref>The Economics of Grid Defection
http://www.rmi.org/electricity_grid_defection {{Webarchive|url=https://web.archive.org/web/20160812215342/http://www.rmi.org/electricity_grid_defection |date=12 August 2016 }}</ref> This is backed up by studies in the Midwest.<ref>Andy Balaskovitz [http://midwestenergynews.com/2016/06/14/net-metering-changes-could-drive-people-off-grid-michigan-researchers-say/ Net metering changes could drive people off grid, Michigan researchers say] {{Webarchive|url=https://web.archive.org/web/20160615112536/http://midwestenergynews.com/2016/06/14/net-metering-changes-could-drive-people-off-grid-michigan-researchers-say/ |date=15 June 2016 }} – MidWest Energy News</ref>
== Cost factors ==
Cogenerators
== Microgrid ==
{{
A ''microgrid'' is a localized grouping of electricity generation, energy storage, and loads that normally operates connected to a traditional centralized grid ([[electrical grid|macrogrid]]). This single [[point of common coupling]] with the macrogrid can be disconnected. The microgrid can then function autonomously.<ref>Stan Mark Kaplan, Fred Sissine, (ed.) ''Smart grid: modernizing electric power transmission and distribution...'' The Capitol Net Inc, 2009, {{ISBN|1-58733-162-4}}, page 217</ref> Generation and loads in a microgrid are usually interconnected at low voltage and it can operate in DC, AC, or the combination of both.
Microgrid generation resources can include stationary batteries, fuel cells, solar, wind, or other energy sources. The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power. Produced heat from generation sources such as microturbines could be used for local process heating or space heating, allowing flexible trade off between the needs for heat and electric power.
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* Small micro-grids covering 30–50 km radius<ref name="moneycontrol"/>
* Small power stations of 5–10 MW to serve the micro-grids
* Generate power locally to reduce dependence on long
Micro-grids have seen implementation in a number of communities over the world. For example, Tesla has implemented a solar micro-grid in the Samoan island of Ta'u, powering the entire island with solar energy.<ref>{{Cite news|url=https://www.theverge.com/2016/11/22/13712750/tesla-microgrid-tau-samoa|title=Tesla powers a whole island with solar to show off its energy chops|work=The Verge|access-date=2018-03-09}}</ref> This localized production system has helped save over {{convert|
To plan and install Microgrids correctly, engineering modelling is needed. Multiple simulation tools and optimization tools exist to model the economic and electric effects of Microgrids. A widely used economic optimization tool is the Distributed Energy Resources Customer Adoption Model (DER-CAM) from [[Lawrence Berkeley National Laboratory]]. Another frequently used commercial economic modelling tool is [https://www.homerenergy.com/ Homer Energy], originally designed by the [[National Renewable Energy Laboratory|National Renewable Laboratory]]. There are also some power flow and electrical design tools guiding the Microgrid developers. The [[Pacific Northwest National Laboratory]] designed the public available GridLAB-D tool and the [[Electric Power Research Institute|Electric Power Research Institute (EPRI)]] designed OpenDSS to simulate the distribution system (for Microgrids). A professional integrated DER-CAM and OpenDSS version is available via [https://www.bankableenergy.com/ BankableEnergy] {{Webarchive|url=https://web.archive.org/web/20180711022032/https://www.bankableenergy.com/ |date=11 July 2018 }}. A European tool that can be used for electrical, cooling, heating, and process heat demand simulation is EnergyPLAN from the [[Aalborg University|Aalborg University, Denmark]].
== Communication in DER systems ==
* [[IEC 61850]]-7-420 is published by IEC TC 57: Power systems management and associated information exchange. It is one of the IEC 61850 standards, some of which are core Standards required for implementing smart grids. It uses communication services mapped to [[Manufacturing Message Specification|MMS]] as per IEC 61850-8-1 standard.
* [[OLE for process control|OPC]] is also used for the communication between different entities of DER system.
* [[Institute of Electrical and Electronics Engineers]] IEEE 2030.7 microgrid controller standard. That concept relies on 4 blocks: a) Device Level control (e.g. Voltage and Frequency Control), b) Local Area Control (e.g. data communication), c) Supervisory (software) controller (e.g. forward looking dispatch optimization of generation and load resources), and d) Grid Layer (e.g. communication with utility).
* A wide variety of complex control algorithms exist, making it difficult for small and residential [[Distributed Energy Resource]] (DER) users to implement energy management and control systems. Especially, communication upgrades and data information systems can make it expensive. Thus, some projects try to simplify the control of DER via off-the shelf products and make it usable for the mainstream (e.g. using a Raspberry Pi).<ref>{{Cite
== Legal requirements for distributed generation ==
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* [[Autonomous building]]
* [[Demand response]]
* [[Energy harvesting]]
* [[Energy storage as a service]] (ESaaS)
* [[Electranet]]
* [[Electric power transmission]]
* [[Electricity generation]]
* [[Electricity market]]
* [[Electricity retailing]]
* [[Energy demand management]]
* [[Efficient energy use|Energy efficiency]]
* [[Energy storage]]
* [[Flywheel energy storage]]
* [[Future energy development]]
* [[Green power superhighway]]
* [[Grid-tied electrical system]]
* [[Hydrogen station]]
* [[IEEE 1547]] (''Standard for Interconnecting Distributed<br />Resources with Electric Power Systems)''
* [[Islanding]]
* [[Local flexibility markets]]
* [[Microgeneration]]
* [[Net metering]]
* [[Peak shaving]]
* [[Relative cost of electricity generated by different sources]]
* [[Renewable energy development]]
* [[Smart meter]]
* [[Smart power grid]]
* [[Solar Guerrilla]]
* [[Stand-alone power system]]
* [[Sustainable community energy system]]
* [[Trigeneration]]
* [[World Alliance for Decentralized Energy]]
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== Further reading ==
* {{Cite journal |
▲* {{Cite journal | last1 = Brass | first1 = J. N. | last2 = Carley | first2 = S. | last3 = MacLean | first3 = L. M. | last4 = Baldwin | first4 = E. | title = Power for Development: A Review of Distributed Generation Projects in the Developing World | doi = 10.1146/annurev-environ-051112-111930 | journal = Annual Review of Environment and Resources | volume = 37 | pages = 107–136 | year = 2012 | doi-access = free }}
* Gies, Erica. [https://www.nytimes.com/2010/11/29/business/energy-environment/29iht-rbogferc.html?pagewanted=all&_r=0&gwh=402884C2E19C695EA255CCF207D8BB22 Making the Consumer an Active Participant in the Grid], ''[[The New York Times]]'', 29 November 2010. Discusses distributed generation and the U.S. [[Federal Energy Regulatory Commission]].
* {{cite book |title = Power from the people : how to organize, finance, and launch local energy projects
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== External links ==
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* [http://www.migrids.com/ MIGRIDS -Worldwide Business and Marketing Microgrid Directory] {{Webarchive|url=https://web.archive.org/web/20200730012714/http://www.migrids.com/ |date=30 July 2020 }}
* [http://www.ukdea.org.uk/ The UK District Energy Association
* [https://web.archive.org/web/20030622211043/http://www.newrules.org/electricity/planningfordg.html Decentralized Power as Part of Local and Regional Plans]
* [
* [http://www.localpower.org World Alliance for Decentralized Energy]
* [http://www.ideasproject.info The iDEaS project by University of Southampton on Decentralised Energy]
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* [http://www.cet.or.at Center for Energy and innovative Technologies]
* [https://web.archive.org/web/20130610130954/http://ezine.pk/?Decentralized-Power-System-DPS-in-Pakistan&id=381 Decentralized Power System (DPS) in Pakistan]
* [http://www.dg.history.vt.edu/index.html Distributed Generation—Educational Module, Virginia Tech] {{Webarchive|url=https://web.archive.org/web/20150715224658/http://www.dg.history.vt.edu/index.html |date=15 July 2015 }}
* [https://arena.gov.au/blog/distributed-energy-resources/ What are distributed energy resources (DER) and how do they work?],
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