Distributed generation: Difference between revisions

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{{Short description|Decentralised electricity generation}}
{{Use dmy dates|date=NovemberDecember 20132024}}
[[File:Staying big or getting smaller.jpg|thumb|500px|Centralized (left) vs distributed generation (right)]]
 
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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 |pages=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{{CnCitation 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|url=https://ieeexplore.ieee.org/document/9112707|journal=IEEE Transactions on Power Systems|volume=35|issue=6|pages=4357–4368|doi=10.1109/TPWRS.2020.3001235|s2cid=225734643|issn=1558-0679|via=}}</ref> and (iii) it may cause reverse power flow from the distribution system to transmission system.<ref>{{Cite journal|last1=De Carne|first1=Giovanni|last2=Buticchi|first2=Giampaolo|last3=Zou|first3=Zhixiang|last4=Liserre|first4=Marco|date=July 2018|title=Reverse Power Flow Control in a ST-Fed Distribution Grid|journal=IEEE Transactions on Smart Grid|volume=9|issue=4|pages=3811–3819|doi=10.1109/TSG.2017.2651147|s2cid=49354817|issn=1949-3061|url=https://nbn-resolving.org/urn:nbn:de:gbv:8-publ-14890}}</ref>
 
[[Microgrid]]s are modern, localized, small-scale grids,<ref>{{Cite book|last1=Saleh|first1=M.|last2=Esa|first2=Y.|last3=Mhandi|first3=Y.|last4=Brandauer|first4=W.|last5=Mohamed|first5=A.|title=2016 IEEE Industry Applications Society Annual Meeting |chapter=Design and implementation of CCNY DC microgrid testbed |date=October 2016|pages=1–7|doi=10.1109/IAS.2016.7731870|isbn=978-1-4799-8397-1|s2cid=16464909|chapter-url=https://academicworks.cuny.edu/cgi/viewcontent.cgi?article=1722&context=cc_pubs}}</ref><ref>{{Cite book|last1=Saleh|first1=M. S.|last2=Althaibani|first2=A.|last3=Esa|first3=Y.|last4=Mhandi|first4=Y.|last5=Mohamed|first5=A. A.|title=2015 International Conference on Smart Grid and Clean Energy Technologies (ICSGCE) |chapter=Impact of clustering microgrids on their stability and resilience during blackouts |date=October 2015|pages=195–200|doi=10.1109/ICSGCE.2015.7454295|isbn=978-1-4673-8732-3|s2cid=25664994|chapter-url=https://academicworks.cuny.edu/cgi/viewcontent.cgi?article=1623&context=cc_pubs}}</ref> contrary to the traditional, centralized [[electricity grid]] (macrogrid). Microgrids can disconnect from the centralized grid and operate autonomously, strengthen grid resilience, and help mitigate grid disturbances. They are typically low-voltage AC grids, often use [[diesel generator]]s, and are installed by the community they serve. Microgrids increasingly employ a mixture of different distributed energy resources, such as [[solar hybrid power systems]], which significantly reduce the amount of carbon emitted.
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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 achieved greater economic benefits through mass-production than larger units gained from their size alone. The increased value of these resources—resulting from improvements in financial risk, engineering flexibility, security, and environmental quality—often outweighs their apparent cost disadvantages.<ref>Lovins; Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size; Rocky Mountain Institute; 2002</ref> Distributed generation (DG), vis-à-vis central plants, must be justified on a life-cycle basis.<ref>Michigan (Citation pending)</ref> Unfortunately, many of the direct, and virtually all of the indirect, benefits of DG are not captured within traditional utility [[Cash flow|cash-flow]] accounting.<ref name="DOE 2007"/>
 
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,<ref>{{Cite web |url= https://www.businessinsider.sg/solar-power-cost-decrease-2018-5/|title=One simple chart shows why an energy revolution is coming and who is likely to come out on top|last=Berke|first=Jeremy |date=2018-05-08|website=Business Insider Singapore|language=en-US|access-date=2018-12-18}}</ref><ref>{{Cite web|url=https://insideevs.com/bloomberg-predicts-rapidly-falling-battery-prices/|title=Bloomberg's Latest Forecast Predicts Rapidly Falling Battery Prices|date=2018-06-21|website=Inside EVs|language=en-US|access-date=2018-12-18}}]</ref> and sufficient and reliable demand may bring economies of scale, innovation, competition, and more flexible financing, that could make DG clean energy part of a more diversified future.{{Citation needed|date=February 2012}}
 
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.
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=== 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 |workpublisher=Bloomberg.com 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 ===
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|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/The Washington Post
|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/
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|date=25 March 2014
|url-status=dead
}}</ref>{{Update neededinline|date=August 2024}}
|df=dmy
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== Technologies ==
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|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
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|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" />
 
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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 [[proton-exchange membrane fuel cell|PEM fuel cell]] units, which shut down at night, this equates to an estimated lifetime of between ten and fifteen years.<ref name="fuelcelltoday.com">{{cite web|url=http://www.fuelcelltoday.com/analysis/analyst-views/2013/13-02-27-latest-developments-in-the-ene-farm-scheme|title=Latest Developments in the Ene-Farm Scheme|access-date=15 May 2015}}</ref> For a price of $22,600 before installation.<ref>{{cite web|url=http://panasonic.co.jp/corp/news/official.data/data.dir/2013/01/en130117-5/en130117-5.html |title=Launch of New 'Ene-Farm' Home Fuel Cell Product More Affordable and Easier to Install - Headquarters News - Panasonic Newsroom Global|access-date=15 May 2015}}</ref> For 2013 a state subsidy for 50,000 units is in place.<ref name="fuelcelltoday.com"/>
 
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 |df=dmy}}
</ref> 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
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|date=7 January 2014
|url-status=dead
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{{Main|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 - Distributed Generation Energy Technology Capital Costs|url = http://www.nrel.gov/analysis/tech_cost_dg.html|website = www.nrel.gov|access-date = 2015-10-31}}</ref> As with solar, wind energy is variable and non-dispatchable. Wind towers and generators have substantial insurable liabilities caused by high winds, but good operating safety. Distributed generation from [[wind hybrid power systems]] combines wind power with other DER systems. One such example is the integration of wind turbines into [[solar hybrid power systems]], as wind tends to complement solar because the peak operating times for each system occur at different times of the day and year.
 
=== Hydro power ===
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==== 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 - A Review and a Simulation Model |author1=Joern Hoppmann |author2=Jonas Volland |author3=Tobias S. Schmidt |author4=Volker H. Hoffmann |date=July 2014 |access-date= }}</ref>{{rp|4,9}}
 
: 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 - The Role of Energy Storage with Renewable Electricity Generation]</ref>{{rp|44}}
 
==== Flywheels ====
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|date=23 July 2014
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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}}</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 <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 method of aiding in integration is in the use of [[intelligent hybrid inverter|intelligent inverter]]s that have the capability to also store the energy when there is more energy production than consumption.<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>
 
== Mitigating voltage and frequency issues of DG integration ==
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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 - Rocky Mountain Institute
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 find favor because most buildings already burn fuels, and the cogeneration can extract more value from the fuel. Local production has no [[Losses in electrical systems|electricity transmission losses]] on long distance [[power line]]s or energy losses from the [[Joule effect]] in transformers where in general 8-15% of the energy is lost<ref>{{cite web|url=http://blog.schneider-electric.com/energy-management-energy-efficiency/2013/03/25/how-big-are-power-line-losses/|title=How big are Power line losses?|work=Schneider Electric Blog|access-date=15 May 2015|date=25 March 2013}}</ref> (see also [[cost of electricity by source]]). Some larger installations utilize combined cycle generation. Usually this consists of a [[gas turbine]] whose exhaust boils [[water]] for a [[steam turbine]] in a [[Rankine cycle]]. The condenser of the steam cycle provides the heat for space heating or an absorptive [[chiller]]. Combined cycle plants with cogeneration have the highest known thermal efficiencies, often exceeding 85%.{{Citation needed|date=August 2024}} In countries with high pressure gas distribution, small turbines can be used to bring the gas pressure to domestic levels whilst extracting useful energy. If the UK were to implement this countrywide an additional 2-4&nbsp;GWe would become available. (Note that the energy is already being generated elsewhere to provide the high initial gas pressure - this method simply distributes the energy via a different route.)
 
== Microgrid ==
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* Small micro-grids covering 30–50&nbsp;km radius<ref name="moneycontrol"/>
* Small power stations of 5–10&nbsp;MW to serve the micro-grids
* Generate power locally to reduce dependence on long -distance transmission lines and cut transmission losses.
 
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|100,000100000|usgal|m3|order=flip}} of diesel fuel. It is also able to sustain the island for three whole days if the sun were not to shine at all during that period.<ref>{{Cite news|url=https://news.nationalgeographic.com/2017/02/tau-american-samoa-solar-power-microgrid-tesla-solarcity/|archive-url=https://web.archive.org/web/20170225040142/http://news.nationalgeographic.com/2017/02/tau-american-samoa-solar-power-microgrid-tesla-solarcity/|url-status=dead|archive-date=25 February 2017|title=How a Pacific Island Changed From Diesel to 100% Solar Power|date=2017-02-23|access-date=2018-03-09}}</ref> This is a great example of how micro-grid systems can be implemented in communities to encourage renewable resource usage and localized production.
 
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]].
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* [[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|websitepublisher=Center for Energy and innovative Technologies}}</ref>
 
== Legal requirements for distributed generation ==
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* [http://www.migrids.com/ MIGRIDS -Worldwide Business and Marketing Microgrid Directory]
* [http://www.ukdea.org.uk/ The UK District Energy Association - advocating the construction of locally distributed energy networks]
* [https://web.archive.org/web/20030622211043/http://www.newrules.org/electricity/planningfordg.html Decentralized Power as Part of Local and Regional Plans]
* [https://sagroups.ieee.org/scc21/ IEEE P1547 Draft Standard for Interconnecting Distributed Resources with Electric Power Systems]
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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}}