2002 · 179 citations · 0 references
Natural ResourcesOperations ManagementDistributed SystemsEnergy EconomicsEnergy SystemsDistributed Energy ResourcesElectricity MarketsPower Sector EconomicsPower SystemsCustomer Needs IdentificationDistributed Energy Resources IntegrationDistributed Energy SystemsDistributed GenerationDistributed Generation IntegrationElectricity DistributionPower UtilitySystem Expansion
Distributed generation can offset utility investments and improve customer service, yet matching technology and economics to specific needs remains challenging as utilities expand its use to reduce system‑expansion costs and address operational issues. This paper aims to analyze the potential of distributed generation on power delivery systems. The authors present an example method for evaluating this potential. Recent successes show that fossil‑fuel distributed generation meets commercial customer reliability and economic targets, and that significant power‑delivery savings require additional customer benefits to be economical.
Distributed generation offers the potential to offset traditional utility investments in distribution, transmission and generation facilities, and improve service to customers. Matching this potential to specific customer needs, and evolving technologies with current economics remains an ongoing challenge. Recent successes have involved strong customer needs, usually of commercial customers, matched to fossil fuel distributed generation systems that meet reliability and economic targets. Many utilities, through its subsidiaries, have been active participants in this marketplace. Distributed generation is starting to expand its reach to address electric utility power delivery needs as a means to offset the cost of system expansion. This paper provides an example method to analyze this potential. It also shows that while power delivery savings can be significant, these must also be matched with additional customer benefits to make distributed generation economical. Also, once the potential fit of the technology and economics is established, a wide range of local and operational issues surface that challenge field implementation.