Distributed generation: Difference between revisions

Revision as of 15:44, 1 April 2024

Revision as of 03:42, 6 June 2024

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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", custom projects.

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 customers’customers' power costs and power quality problems, which became more acute as digital equipment required extremely reliable electricity.<ref name="DOE 2007">DOE; The Potential Benefits of Distributed Generation and Rate-Related Issues that May Impede Their Expansion; 2007.</ref><ref>Lovins; Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size; Rocky Mountain Institute, 2002.</ref> Efficiency gains no longer come from increasing generating capacity, but from smaller units located closer to sites of demand.<ref>Takahashi, et al; Policy Options to Support Distributed Resources; U. of Del., Ctr. for Energy & Env. Policy; 2005.</ref><ref>Hirsch; 1989; cited in DOE, 2007.</ref>

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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[[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 web

|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/

|website=www.washingtonpost.com/

|publisher=Washingtonpost.com

|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

|df=dmy

}}</ref>

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Distributed energy resource ('''DER''') systems are small-scale power generation or storage technologies (typically in the range of 1&nbsp;kW to 10,000&nbsp;kW)<ref name=nrel-using-der>{{cite web

|title=Using Distributed Energy Resources

|url=http://www.nrel.gov/docs/fy02osti/31570.pdf

|website=www.nrel.gov

|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

|df=dmy

}}</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 cost]]s 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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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

|title=Photovoltaics Report

|url=http://www.ise.fraunhofer.de/en/downloads-englisch/pdf-files-englisch/photovoltaics-report-slides.pdf

|publisher=Fraunhofer ISE

|access-date=31 August 2014

|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

|date=28 July 2014

|url-status=live

|df=dmy

}}

</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>

{{cite web

|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

|df=dmy

}}</ref>

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{{Main|Grid 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 for commercial applications is easily accessible through programs such as [[energy storage as a service]] (ESaaS).

==== PV storage ====

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| url-status = dead

}}</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

|df=dmy

}}</ref>

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{{ISBN|1-118-02901-1}}, pages v-x</ref> As a result, [[smart grid]] functions, [[virtual power plant]]s <ref>[https://www.researchgate.net/publication/270821401_Decision_Making_Tool_for_Virtual_Power_Plants_Considering_Midterm_Bilateral_Contracts/ Decision Making Tool for Virtual Power Plants Considering Midterm Bilateral Contracts]</ref><ref>[https://www.researchgate.net/publication/279849005_The_Design_of_a_Risk-hedging_Tool_for_Virtual_Power_Plants_via_Robust_Optimization_Approach/ The Design of a Risk-hedging Tool for Virtual Power Plants via Robust Optimization Approach]</ref><ref>[https://www.researchgate.net/publication/296307377_A_Medium-Term_Coalition-Forming_Model_of_Heterogeneous_DERs_for_a_Commercial_Virtual_Power_Plant/ A Medium-Term Coalition-Forming Model of Heterogeneous DERs for a Commercial Virtual Power Plant]</ref> and [[grid energy storage]] such as [[power to gas]] stations are added to the grid. Conflicts occur between utilities and resource managing organizations.<ref>{{cite web |last1=Bandyk |first1=Matthew |title=Propelling the transition: The battle for control of virtual power plants is just beginning |url=https://www.utilitydive.com/news/propelling-the-transition-the-battle-for-control-of-virtual-power-plants-i/581875/ |website=Utility Dive |archive-url=https://web.archive.org/web/20200819022737/https://www.utilitydive.com/news/propelling-the-transition-the-battle-for-control-of-virtual-power-plants-i/581875/ |archive-date=19 August 2020 |date=18 August 2020 |url-status=live}}</ref>

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 respond too often and wear out much more quickly than utilities anticipated.<ref>{{cite journal|last1=Agalgaonkar|first1=Y.P. |display-authors=etal |title=Distribution Voltage Control Considering the Impact of PV Generation on Tap Changers and Autonomous Regulators|journal=IEEE Transactions on Power Systems|date=16 September 2013|volume=29|issue=1|pages=182–192|doi=10.1109/TPWRS.2013.2279721|hdl=10044/1/12201 |s2cid=16686085 |hdl-access=free}}</ref> Also, without any form of energy storage during times of high solar generation, companies must rapidly increase generation around the time of sunset to compensate for the loss of solar generation. This high ramp rate produces what the industry terms the ''[[duck curve]]'' that is a major concern for grid operators in the future.<ref>{{cite web|title=What the Duck Curve Tells Us About Managing A Green Grid|url=https://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf |website=caiso.com|publisher=California ISO|access-date=29 April 2015}}</ref> Storage can fix these issues if it can be implemented. Flywheels have shown to provide excellent frequency regulation.<ref>{{cite book|last1=Lazarewicz|first1=Matthew |last2=Rojas|first2=Alex |title=IEEE Power Engineering Society General Meeting, 2004 |chapter=Grid frequency regulation by recycling electrical energy in flywheels |journal=Power Engineering Society General Meeting|volume=2|date=10 June 2004|pages=2038–2042 |doi=10.1109/PES.2004.1373235|isbn=0-7803-8465-2|s2cid=20032334 }}</ref> Also, flywheels are highly cyclable compared to batteries, meaning they maintain the same energy and power after a significant amount of cycles( on the order of 10,000 cycles).<ref>{{cite web |title=Flywheels |url=http://energystorage.org/energy-storage/technologies/flywheels |publisher=Energy Storage Association |access-date= }}</ref> Short term use batteries, at a large enough scale of use, can help to flatten the duck curve and prevent generator use fluctuation and can help to maintain voltage profile.<ref>{{cite web|last1=Lazar|first1=Jim |title=Teaching the "Duck" to Fly|url=http://www.ripuc.ri.gov/eventsactions/docket/4443-EERMC-Presentation2_5-8-14.pdf |publisher=RAP|access-date=29 April 2015}}</ref> However, cost is a major limiting factor for energy storage as each technique is prohibitively expensive to produce at scale and comparatively not energy dense compared to liquid fossil fuels. Finally, another necessary method of aiding in integration of photovoltaics for proper distributed generation is in the use of [[intelligent hybrid inverter]]s. Intelligent hybrid inverters store energy when there is more energy production than consumption. When consumption is high, these inverters provide power relieving the distribution system.<ref>{{cite web|title=Smart Grid, Smart Inverters for a Smart Energy Future|url=https://www.nrel.gov/state-local-tribal/blog/posts/smart-grid-smart-inverters-for-a-smart-energy-future.html |publisher=National Renewable Energy Labortatory |access-date= }}</ref>

Another approach does not demand grid integration: stand alone hybrid systems.

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{{Main|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. From the point of view of the grid operator, a connected microgrid can be controlled as if it were one entity.

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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== 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 book|last1=Fürst|first1=Jonathan|last2=Gawinowski|first2=Nik|last3=Buettrich|first3=Sebastian|last4=Bonnet|first4=Philippe|title=2013 IEEE Global Humanitarian Technology Conference (GHTC) |chapter=COSMGrid: Configurable, off-the-shelf micro grid |date=2013-09-25|chapter-url=https://www.researchgate.net/publication/259157235|pages=96–101|doi=10.1109/GHTC.2013.6713662|isbn=978-1-4799-2402-8|s2cid=19202084}}</ref><ref>{{Cite web|url=http://www.cet.or.at/pdf_files/Paspberry%20Pi%20Microgrid%20Controller.pdf|title=A flexible low cost PV/EV microgrid controller concept based on a Raspberry Pi|last=Stadler|first=Michael|date=2018|website=Center for Energy and innovative Technologies}}</ref>

== Legal requirements for distributed generation ==

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{{Div col start|colwidth=26em}}

* [[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]]

{{Div col end}}

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== Further reading ==

* {{Cite journal | last1 = Brass | first1 = J. N. | last2 = Carley | first2 = S. | last3 = MacLean | first3 = L. M. |author-link3=Lauren last4M. =MacLean |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 }}

* {{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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* [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?], [[Australian Renewable Energy Agency]] ([[Australian Renewable Energy Agency|ARENA]]).

{{Div col end}}