Grid integration of Distributed Energy Resources:

Technologies, potentials contributions and future prospects

G. Adinolfi*, V. Cigolotti*, G. Graditi* and G. Ferruzzi**
ENEA - Italian National agency for new technologies, Energy and sustainable economic development Research Center, Portici-Napoli, (Italy) ** University of Naples Federico II, Dept. of Industrial Engineering, P.le Tecchio 80, I-80124 Naples (Italy) corresponding author - email: viviana.cigolotti@enea.it
*

AbstractIn the last years, technological innovations and changing economic and regulatory environments have resulted in a great interest for Distributed Generation (DG). DG concept covers local power generation at distribution level by using renewable or non-conventional generators. Distributed Energy Resources (DER) range from CHP (combined heat and power) systems based on Stirling engines, fuel cells and microturbines, to renewables like solar photovoltaic (PV) systems, wind energy conversion systems (WECS) and small scale hydroelectric generation. The use of biofuels and application of various storage technologies are also considered part of DG. In this paper, the state of the art of DG technologies and strategies focusing on solar PV, wind and fuel cells - are analysed, benefits and drawbacks are discussed, future R&D prospects are presented. Index Terms--Distributed Generation, RES, integration, grid

(reliability, safety, control, stability, etc.) of the electric system. The aim of this paper is the analysis of commercial and technical integration of some Distributed Energy Resources (DER), as solar PV, wind and fuel cells, in distribution networks. In this context three main issues are discussed: the commercial aspects of DER, advantages and problems, future Research and Development (R&D) need and prospect. II. DISTRIBUTED GENERATION A. Brief literature review of DG definitions Distributed generation (DG) is not a new concept, but an emerging approach to providing electric power of the power system. The term Distributed is used to describe a number of different generation scenarios and the development is driven by (a) government commitments to reduce CO2 emissions from electric power generation; (b) technological advances in energy generation and storage as well as in information and communication technologies; (c) regulatory reform of the energy industry [1]. A new trend is developing toward distributed energy generation, which means that energy conversion units are situated close to energy consumers, and large units are substituted by smaller ones. A distributed energy system is an efficient, reliable and environmentally friendly alternative to the traditional energy system. As previously said, distributed generation is not a new concept but, only in recent years, more attention is dedicated to this theme. Consequently, there isnt a officially definition recognised in literature. The definition should be based on the purpose, the location, the power scale, the power delivery, the technology, the environment impact, the mode of operation, the ownership and the penetration of distributed generation [2]. The main definitions are shown below. The Institute of Electrical and Electronics Engineers Inc. (IEEE) defines the DG as generation of electricity by facilities sufficiently smaller than central plants, usually 10 MW or less, so as to allow interconnection at nearly any point in the power system [3].

I. INTRODUCTION During the last period, the electric energy consumption is greatly increased, and it is estimated a yearly rise of about 1.4% until 2030 (IEA). In this scenario, it is clear that the grid centralized architecture constituted by a few energy producers and many end-users has to be overcome. In fact, such a model can be affected by failures and vulnerability problems, with consequently high losses in terms of load and economics aspects. The transformation of passive distribution networks into actively managed networks will require novel technical solutions and commercial arrangements. One of the alternative options to this context is represented by Distributed generation (DG), intended as the generation of electricity by facilities that are sufficiently smaller than central generating plants so as to allow interconnection at nearly any point in a power system (IEEE) [1]. In the future smart grid landscape, Distributed Energy Resources (DER) are expected to occupy an important part of the global energy generation through an important number of small-scale energy sources (combined heat and power systems, solar panels, small wind turbines, etc.), highly dispersed across the whole grid. Therefore, their integration in the grid will imply new challenges for the electric grid management, which has to ensure, in a decentralized way, the operational requirements

TABLE I BENEFITS OF DER [3], [5], [6] Environment Intensive use of FER Use of CHP reduces thermal pollution of the environment DGs reduce the output process emissions. Centralized power plant Energy market Economic point of view DGs can reduce or avoid the need for building new T&D lines and reduce T&D networks capacity during planning phase. DGs can be assembled easily anywhere as modules. Can be placed anywhere also if renewable DGs technology require certain geographical conditions CHP DGs can use their waste heat for heating, cooling or improving their efficiency by generating more power. DGs can reduce the wholesale power price by supplying power to the grid, which leads to reduction of the demand required DGs increase the system equipments, transformers, lifetimes, and provide fuel savings. TABLE II BARRIERS OF DER [3], [5], [6] Centralized power plant Fragmented information Lack of uniformity and consistency Considerable effort in management and/or education Energy market Needs of incentive scheme Security of power system Distributed control systems must be redesigned/reset to handle two-way power flows on distribution lines. Given the recorded growth trend of natural gas fuelled CHP technologies integrated in distribution networks, security of supply may be of rising concern due to gas demand/offer unbalances. DG technologies connection not only changes the power flows pattern, but also significantly affects local voltage and fault current levels. Power quality deterioration might result as an undesired effect of the utilization of power electronicsbased converters to connect DG technologies to the distribution grid. Given the expected growth of the market share of intermittent renewable and heat-based CHP, the costs of imbalances will become increasingly important. Security of power system DGs have a positive impact on the distribution system voltage profile and power quality problems. DGs reduce the distribution network power losses DGs can help in peak load shaving and load management programs. Ability of DG to respond to a demand change. DER can help in system continuity, reliability and quality of supply for customers. DGs can be used as on-site standby to supply electricity in case of emergency and system outages. They provide transmission capacity release. DGs maintain system stability, supply the spinning reserve required. DG penetration level considerably reduce the congestions. DGs provide transmission capacity release.

Shared low Contribute to ancillary Can work service independently Stimulate Flexibility competition Increased control at the local level

The International Council on Large Electricity Systems (CIGRE) defines DG unit as a generation unit that is not centrally planned, not centrally dispatched, usually connected to the distribution network and smaller than 50-100 MW. The International Energy Agency (IEA) defines DG as generating plant serving a customer on-site or providing support to a distribution network, connected to the grid at distribution-level voltages. The US Department of Energy (DOE) defines DG as modular electric generation or storage located near the point of use. The DOE considers distributed power systems to typically range from less than MW and/or energy storage devices typically sited near customer loads or distribution and sub-transmission substations as distributed energy resources. In the European Directive 2003/54/EC, Distributed Generation (DG) is defined as generation plants connected to the distribution system. According to different definitions, it is possible summarized DER concepts as follows: DER are electric power sources, connected to the grid at distribution level voltages, serving a customer on-site or providing support to a distribution network. In adding, alternative to the traditional energy system, distributed energy system is an

efficient, reliable and environmentally friendly system. To understood the real benefits of DG, it is necessary analyse the impact that this technology in terms of environmental, electricity system, efficiency, economic, security of supply. A summary of benefits and drawbacks is presented in table I and table II, respectively. B. DG Classification Usually DG is classified according to different types and operating technologies. Technologies for distributed generation are numerous and varied. There are more possibilities to classify the DG technologies according to their different properties and features. This classification may be done according to: capability for emission-free operation; type of energy source or prime mover; suitability for combined heat and power (CHP) production; available unit size and modularity feasibility; intermittent power output; type of dispatch (local and/or central). Energy storage technologies (such as battery and flywheel), can be an option for managing intermittency of

some DG technologies. DGs different classifications can be obtained according to their electrical applications, supply duration, generated power types, electric ratings and renewable and non-renewable technologies. The most common classification used is shown in Fig. 1. These levels of capacities vary widely from one unit to a large number of units connected in a modular form.
DG Capacities

from 300 kW to 5 MW1 [8], [9]. The main WECS applications are remote places and process industry. Due to depending on weather conditions and needing control on their operation in some applications, WECS are considered unsteady supplies [4].

Micro

Small

Medium

Large

Fig. 2. Example of Wind installation 1 W 5 kW 5k W 5 MW 550 MW 50300 MW

Fig. 1. Most common classification of DG Capacities [4]

Prospective DER technologies range from micro-CHP systems based on Stirling engines, fuel cells and microturbines, to renewables like solar photovoltaic systems, wind energy conversion systems and small-scale hydroelectric generation [4]. Another attempt for DG classification can be done according to the type of the fuel used: it can be either fossil or non-fossil fuel. As already mentioned, there are several DG applications in different environments with relevant benefits and issues to be analysed. In this paper the following DERs will be described: Wind energy conversion systems (WECS) Solar photovoltaic (PV) systems Fuel Cell (FC) systems. The choice has been made taking into account both the main different applications and the different power supplied period. III. DISTRIBUTED ENERGY RESOURCES A. Wind energy conversion systems (WECS) Wind energy conversion systems (WECS) convert wind energy into electrical energy [8], [9]. Wind turbine, the WECS principal component, captures the kinetic energy of wind flow through rotor blades and transfers the energy to the induction generator side through the gearbox. The generator shaft is driven by the wind turbine to generate electric power. Wind turbines may have horizontal axis configuration or vertical axis configuration. The average commercial turbine sizes of WECS range

In addition to all the benefits similar for DER, WECS are environmental friendly technology, because they dont produce CO2 emissions during operation time; contribute to global safety (non-hazardous or radioactive wastes) unlike nuclear power and unlike to traditional oil fuel, and their costs decrease with time. Wind Barriers to the Distributed Generation Several barriers were found to be casual factors in multiple market segments: turbine availability. First of all, limited turbine size choices. In fact, the limited number of commercial turbines 50 kW and greater, combined with nonoptimized turbine efficiency and design, result in missed market share. interconnection to the grid, including standards and defined requirements. Turbine grid interconnection is a complex issue that varies from state to state and generally from utility service provider to service provider [7]. grid interconnection and integration. The technical complexity and cost of interconnection of small wind systems to the electric distribution grid require further advancement, standardization, and testing. lack of consistent incentive policies across markets. The lack of clear, consistent, and economically motivating incentives complicates and distorts markets for small wind systems. In addition to market barriers, technical barriers were also identified. Turbine and system reliability, especially
1 The output power of a wind turbine is determined by several factors such as wind velocity, size and shape of the turbine. The power developed is given by 1 P Cp V 3 A 2 where P is the power (W), Cp is the power coefficient, is the air density (kg/m3), V is the wind velocity (m/s), and A is the swept area of rotor blades (m2).

in distributed applications where service personal are less readily available, hinder the adoption of wind systems. The lack of industry-accepted standards undermines the credibility of performance estimates for wind turbines. Moreover, wind turbines are still considered too noisy to be used in residential settings, although distributed turbines are becoming quieter with each successive generation. Finally, the necessity to energy storage system to manage intermittency of WECS. Perspectives Performance standards, testing, and ratings are necessary . The lack of effective standards and consistent ratings has delayed the implementation of state rebate programs for small wind systems. If these standards can be established, consumers will have reliable data upon which to base purchase decisions, and industry credibility will be enhanced. Numerous technical enhancements are needed for increased wind turbine robustness, reliability, and efficiency. New turbine technologies are required for cost competitive energy in low-wind regimes. R&D investments include supervisory control systems that coordinate turbine operation with load management, improved electronics and integration systems. B. Solar photovoltaic (PV) One of the most diffused renewable energy source is the solar one, everywhere available, free endless and gas emission free. It can be exploited as electricity and heat source. In the last years, some photovoltaic (PV) technologies have been tested, prototyped and market introduced. Each of them presents particular characteristics in terms of layout, efficiency and reliability. PV devices have increasingly affirmed since they have acquired technology maturity, so resulting reliable for a time period of twenty-five years and more. PV generators could be classified in three different category. PV cells of the first category are the crystalline silicon (Si) ones with a marker share of about 87%, and a 20% average efficiency. The second type is constituted by thin film solar cells (amorphous silicon, CIGS, CdTe etc.). Between all the possible materials used, only the CdTe represents a suitable one in terms of the trade-off cost/efficiency. The last class contains higher efficiencies (about 40%) PV cells. At the moment, the III-V (GaInP/GaInAs/Ge) multi-junction solar cells represent the last generation or third generation photovoltaic. These devices are very performing, their disadvantage is represented by very high costs, since they are used only in Concentration PV applications. In fact, a CPV module is realized by very small solar cells with cost reduction as a consequence of material saving. The produced energy can be grid introduced by a DC-AC converter (inverter). - which is also used to

implement the PV system Maximum Power Point Tracking (MPPT) [10] The MPPT function can also be implemented to PV generator level [11], [12]. In that case, a Distributed MPPT DC-DC converter dedicate to the MPPT of each PV module is adopted with a consequent efficiency improvement of the whole system performance.

Fig. 3. Example of PV installation

PV Barriers to the Distributed Generation In spite of the great number of installed PV plants, some market-based barriers, holding distributed PV applications back, can be identified: cost gap between PV and non-renewable resources. Energy produced by PV plants is still characterized by higher cost respect to fossil sources one. Until conventional energy is less expensive, consumers will not understand the community necessity to promote renewables. high initial cost of PV systems and high payback period. Although if PV systems become every day cheaper, PV devices, equipment and plant design costs are still too high. The payback time is too long respect to the PV plant lifetime. not easy access to financing procedures; red tape and prolix processes dissuade people to request credit. inadequate government policy supporting PV integration. In Italy, from 2005 a feed- in premium "Conto Energia" is used to incentivize the PV market. This policy attracted many international investors in our country until 2011. In 2012, the last Conto Energia was published. It makes more difficult incentives access, so causing PV technology growth stall with heavy consequences for all the sector operators difficult PV distributed generation diffusion. The introduction of innovative systems is not simple in an electricity markets mainly designed for centralized power plants. In addition to market barriers, other technical barriers have to be identified. An interesting aspect is represented by PV plants aesthetics. In fact, nowadays, in spite of numerous available Building Integrated PV (BIPV)

strategies and technologies, PV systems installation is still difficult in place characterized by landscape constraints. Perspectives In the future, techniques and strategies are going to be further improved to achieve smart PV plants. They consist in PV systems able to assure better performances than the current ones. To reach better results, such systems will adopt higher efficiency technologies, but they will be also able to face the continuous changing working conditions and shadow problems by implementing, time by time, strategies to suitably change PV plants configurations (matrix reconfiguration). In addition, considering the future scenario based on smart grids diffusion, PV systems are going to intensively interact with other network and GD operators to provide useful ancillary services and information to the controlled and optimized management of the electrical grid. To this aim, opportune technologies have to be developed and appropriate grid codes have to be drawn up. C. Fuel cell (FC) The fuel cell is a device used to generate electric power and provide thermal energy from chemical energy through electrochemical processes. It can be considered as a battery supplying electric energy as long as its fuels are continued to supply. Unlike batteries, FC does not need to be charged for the consumed materials during the electrochemical process since these materials are continuously supplied. FC technology is based on an electrochemical process in which hydrogen and oxygen are combined to produce electricity without combustion. The operating stages and products of this electrochemical process are direct current electric power, water, heat, and some low emitted gases (like NOx and CO2) with respect to traditional generators and hence is considered an environmentally safe electric power generation. Fuel cells are seen as promising alternatives in the next future, above all thanks to their potentially extremely high electrical high electrical efficiency.

(DMFC), phosphoric acid fuel cell (PAFC) classified as low-temperature fuel cells, molten carbonate fuel cell (MCFC) and solid oxide fuel cell (SOFC), classified as high-temperature fuel cells. Table III provides a summary of the main application area of some fuel cell types, only concerning DG concept.
TABLE III [10] FC TECHNOLOGIES AND THEIR APPLICATIONS Application availability Cogeneration (residential and commercial ) Cogeneration (commercial, light industrial, heavy industrial ) Grid sited (central and distributed) Cogeneration (commercial, light industrial, heavy industrial) Grid sited (central and distributed) Cogeneration (residential, commercial, light industrial, heavy industrial)

Type PEMFC PAFC MCFC

SOFC

These fuel cells can be multi-megawatt systems for large centralized power generation, small units (e.g. 1 kW) for backup power, or 1 kW3 MW systems for homes, buildings, and distributed generation applications, including CHP systems. DG can be considered an energy system in which fuel cells provide different services. FCs can operate with hydrogen; the process of separating hydrogen from chemical compounds like water, natural gas and other carriers always requires energy. The cleanest and most environmentally friendly way to produce hydrogen is through renewable energy. Electricity from wind and solar power can be used to produce hydrogen by electrolysis, but the conversion of renewable electricity into hydrogen and then back into electricity is still associated with energy losses and additional costs. Fuel cells powered by renewable hydrogen can reduce emissions almost 100%, compared to fossil fuel options. The advantages of fuel cells for distributed power generation include: elimination of transmission and distribution losses, low emissions, increased reliability, reduction in bottlenecks and peak demand on the electric grid, nearly silent and vibration-free operation, low operation and maintenance requirements, and excellent transient response and load following capability. Fuel cells can also provide the very high efficiencies inherent in CHP installations, with the potential to use more than 80% of the fuel energy. FCs can also operate on biomass derived fuel, with an important benefit of low greenhouse gas emissions, and more efficient use of biomass resources. FC Barriers to Distributed Generation Cost and durability present two of the most significant challenges to achieving clean, reliable, cost-effective fuel cell systems. Size and weight are approaching targets but further reductions are needed to meet packaging requirements for some commercial systems. Understanding of the effects of air, fuel, and system-

Fig. 4. FC plant

There are different types and operating technologies of fuel cells depending on the electrolyte used and operating temperature, such as: proton exchange membrane or polymer electrolyte membrane fuel cell (PEMFC), alkaline fuel cell (AFC), direct methanol fuel cell

derived impurities (including from the fuel storage system) needs to be improved, and mitigation strategies need to be identified and demonstrated. Cost, efficiency, and packaging of fuel cell balance-of-plant components are also heavy barriers to the commercialization of fuel cells. In stationary power applications, increasing fuel cell performance will also improve heat and power cogeneration and overall system efficiency. Development of low-cost fuel processing and gas clean-up is needed to enable fuel flexibility and enable the use of renewable fuels, such as biogas. Improving the durability at lower cost of high temperature fuel cell (MCFC and SOFC) systems is also required. [14] In particular, the following barriers to be overcome are identified: Durability Stationary fuel cells must achieve greater than 60,000 hours durability to compete against other distributed power generation systems and to allow for an acceptable return on investment to the end-user. The operating temperatures required for high temperature fuel cells place stringent durability requirements on materials and components, including the electrolyte, electrolyte support, and electrode. Regardless of application, system BOP component durability needs to be improved. The majority of fuel cell system failures and forced outages (~90% in micro CHP systems) are the result of non-fuel cell stack BOP events [13]. Costs For fuel cells and fuel cell systems to be commercially viable, significant reduction in cost is required. Materials and manufacturing costs for stack components need to be reduced. One of the most important issues is the development of a cost-effective process and sub-system for removing contaminants, especially those found in renewable fuels, which would considerably reduce overall cost and allow for fuel flexibility. For high temperature fuel cells, some of the BOP components (e.g., heat exchangers) need to operate at elevated temperatures [14]. Performance Fuel cell and fuel cell system performance and efficiency must meet or exceed that of competing technologies to allow for market penetration and the inherent environmental benefits of the technology [13]. Perspectives Stationary fuel cells can be used in a broad range of commercial, industrial, and residential applications and can supplement or even replace power from the electrical grid; thanks to that FCs can save energy, reduce emissions, and offer increased reliability compared to traditional technologies. Fuel cells for the small commercial market will supply power in the range of 25 kW to 500 kW. All fuel cell types can serve this market, which includes hotels,

schools, small to medium sized hospitals, office buildings, and shopping malls. High temperature fuel cells (MCFCs and SOFCs) will operate in a cogeneration mode, supplying heat and electricity. Fuel cells will compete in the commercial sector, not only among themselves, but also with other emerging technologies such as microturbines. Fuel cells for the industrial market will supply power in the range of 1 MW to 25 MW. High temperature fuel cells will serve this market, which includes the chemical, paper, metal, food, and plastic industries. Fuel cells for the distributed power market segment will supply power in the range of 3 MW to 100 MW. High temperature fuel cells will serve this market, which includes traditional utilities, unregulated subsidiaries, municipal utilities, and energy service providers. Fuel cells for the residential market will supply power in the range of 1 kW to 10 kW. PEMFCs and SOFCs operating (initially) in electric-only configurations are likely to serve single and multi-family residences. Additionally, fuel cells may be appropriate for niche markets such as computer centres or other customers who require premium power quality and high reliability. There also may be a market for fuel cells in the field of renewable fuels such as landfill gas, biogas (from waste or waste water treatment plants) and fuels from biorefineries. In the effort to maximize the energetic yield from alternative energy sources like biomass, sewage sludge, manure, waste flows from the food and agriculture industries, and wanting to minimize environmental impact in terms of polluting emissions, the coupling of high-temperature fuel cells to the fuel gas produced from these sources is an attractive option [14], [15]. IV. CONCLUSION The wide range of potential applications for distribution generation, decentralization of power system and the trend to use renewable energy sources in most developed countries suggest that DG may have a large share in power generation in the future. Nevertheless, more research and development is required to overcome the barriers that DG systems are currently confronting. Higher efficiency, lower emissions and lower capital costs are the main goals these DG systems need to accomplish. On the other hand, electricity market regulatory authorities and government policy makers should consider the worth of DG systems and modify the structure, operation and pricing mechanisms of the open markets to help their viability and development.

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