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There has been a great interest in integration of distributed generation (DG) units at distribution
level in the recent years. DGs can provide cost-effective, environmentally friendly, higher power
quality and more reliable energy solutions than conventional generation. Understanding the wide
variety of DG options available along with their technical benefits in today's changing electric
market environment can be daunting. Technical benefits of DGs can range from loss reduction to
reduction in feeder loading. Loadability enhancement is another benefit that DG can add to
distribution system, if properly placed and appropriately sized. This paper presents a simple
methodology for placing a distributed generation with the view of increasing loadability and
voltage stability of distribution system. Effectiveness of the proposed placement technique is
demonstrated in a practical distribution system of Pujon in Malang, Indonesia.



Distributed generation, also distributed energy, on-site generation (OSG)[1]
or district/decentralized energy is electrical generation and storage performed by a variety of
small, grid-connected devices referred to as distributed energy resources (DER).[2]Conventional
power stations, such as coal-fired, gas, and nuclear powered plants, as well as hydroelectric
dams and large-scale solar power stations, are centralized and often require electric energy to be
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 megawatts (MW) or less. These systems can comprise multiple generation and storage
components; in this instance they are referred to as hybrid power systems .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 electricity storage can also be classified as a
DER system and is often called a distributed energy storage system (DESS). By means of an
interface, DER systems can be managed and coordinated within a smart grid. Distributed
generation and storage enables collection of energy from many sources and may lower
environmental impacts and improve security of supply .

Microgrids are modern, localized, small-scale grids, 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 generators, 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 reduce the amount of emitted carbon

6 Energy storage 3 Integration with the grid 4 Stand alone hybrid systems 5 Cost factors 6 Microgrid 7 Communication in DER systems 8 Legal requirements for distributed generation 9 See also 10 References 11 Further reading 12 .Contents 1 Overview 1.2 Solar power 2.1 Grid parity 2 Technologies 2.1 Cogeneration 2.3 Wind power 2.5 Waste-to-energy 2.4 Hydro power 2.

contrary to the traditional. biogas. and nuclear powered plants. in this instance they are referred to as hybrid power systems . Microgrids can disconnect from the centralized grid and operate autonomously. such as coal-fired. and more flexible technologies. By contrast.[2]Conventional power stations. and increasingly play an important role for the electric power distribution system. such as solar hybrid power systems. are centralized and often require electric energy to be transmitted over long distances. strengthen grid resilience. External links . modular. on-site generation (OSG)[1] or district/decentralized energy is electrical generation and storage performed by a variety of small. which reduce the amount of emitted carbon significantly. wind power. DER systems can be managed and coordinated within a smart grid. biomass. INTRODUCTION Distributed generation.DER systems typically use renewable energy sources. including small hydro. also distributed energy. grid-connected devices referred to as distributed energy resources (DER). centralized electricity grid (macrogrid). and are installed by the community they serve. DER systems are decentralized. solar power. They are typically low-voltage AC grids. These systems can comprise multiple generation and storage components. A grid- connected device for electricity storage can also be classified as a DER system and is often called a distributed energy storage system (DESS). Distributed generation and storage enables collection of energy from many sources and may lower environmental impacts and improve security of supply . Microgrids are modern. By means of an interface. Microgrids increasingly employ a mixture of different distributed energy resources. albeit having capacities of only 10 megawatts (MW) or less. and help mitigate grid disturbances. localized. often use diesel generators. small-scale grids. as well as hydroelectric dams and large-scale solar power stations. that are located close to the load they serve. gas. and geothermal power.

[5]While the levelized cost of distributed generation (DG) is typically more expensive than conventional.[10] Unfortunately. The low pollution permits the plants to be near enough to a city to provide district heating and cooling. centralized sources on a kilowatt-hour basis. security. Low pollution is a crucial advantage of combined cycle plants that burn natural gas. 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. Hydroelectric plants are by their nature limited to operating at sites with sufficient water flow. which became more acute as digital equipment required extremely reliable electricity. are able to offer important but little-known economic advantages over central plants. for individual customers. and more flexible financing." custom projects. and environmental quality—of these resources can often more than offset their apparent cost disadvantages.[5][6] Efficiency gains no longer come from increasing generating capacity. higher overall complexity and total costs for regulatory oversight. deterioration.Distributed energy resources are mass-produced. distribution substations. that could make DG clean energy part of a more diversified future. and capacity constraints upon T&D for bulk power. tariff administration.the increasing age. the grid had become the main driver of remote customers’ power costs and power quality problems.[citation needed] . in turn. The additional premium for DG is rapidly declining as demand increases and technology progresses. engineering flexibility. by the start of the 21st century. and are built as "one-off. supply the traditional transmission and distribution (T&D) grid that distributes bulk power to load centers and from there to consumers. and virtually all of the indirect. or microgrids. central plants have been an integral part of the electric grid. many of the direct. in which large generating facilities are specifically located either close to resources or otherwise located far from populated load centers. These increased value—due to improvements in financial risk. but from smaller units located closer to sites of demand. such plants are often built near collieries to minimize the cost of transporting coal.[9] e increasing relative economy of mass production of smaller appliances over heavy manufacturing of larger units and on-site construction.[citation needed] Thus. These. small. must be justified on a life-cycle basis. benefits of DG are not captured within traditional utility cash-flow accounting. vis-à-vis central plants. OVERVIEW Historically. this does not consider negative aspects of conventional fuels. and less site-specific. competition. In addition. These economies of scale began to fail in the late 1960s and. Smaller units offered greater economies from mass-production than big ones could gain through unit size. 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.[7][8] For example. and metering and billing. innovation. Along with higher relative prices for energy. particularly environmental concerns.Capital markets have come to realize that right-sized resources. coal power plants are built away from cities to prevent their heavy air pollution from affecting the populace. Central Plants could arguably no longer deliver competitively cheap and reliable electricity to more remote customers through the grid. Their development arose out of:concerns over perceived externalized costs of central plant generation. Central plants are usually designed to take advantage of available economies of scale in a site-specific manner.[citation needed] and sufficient and reliable demand may bring economies of scale.

such as sunlight. . However. perhaps even in the same building. these traits required dedicated operating engineers and large complex plants to reduce pollution. modern embedded systems can provide these traits with automated operation and renewables. This reduces the size of power plant that can show a profit. Typical DER systems in a feed-in tariff (FIT) scheme have low maintenance.Distributed generation reduces the amount of energy lost in transmitting electricity because the electricity is generated very near where it is used. In the past. wind and geothermal. low pollution and high efficiencies. This also reduces the size and number of power lines that must be constructed.

000 kW)[12] used to provide an alternative to or an enhancement of the traditional electric power system. hybrid photovoltaic.[13] DER systems also serve as storage device and are often called Distributed energy storage systems (DESS).Technologies Distributed energy resource (DER) systems are small-scale power generation or storage technologies (typically in the range of 1 kW to 10. For example.[16] . DER systems may include the following devices/technologies: Combined heat power (CHP). CHP and battery systems can provide full electric power for single family residences without extreme storage expenses.[15] also known as cogeneration or trigeneration Fuel cells Hybrid power systems (solar hybrid and wind hybrid systems) Micro combined heat and power (MicroCHP) Microturbines Photovoltaic systems (typically rooftop solar PV) Reciprocating engines Small wind power systems Stirling engines or a combination of the above. DER systems typically are characterized by high initial capital costs per kilowatt.

The hot exhaust is then used for space or water heating. For PEM fuel cell units. syngas and associated petroleum gas.000 hours. or to drive an absorptive chiller [18][19] for cooling such as air-conditioning. or waste-to-energy processes such as the Gate 5 Energy System are used as a distributed energy resource.000 units were sold in Japan in 2012 overall within the Ene Farm project. In addition to natural gas-based schemes. biogas.[20] Delta-ee consultants stated in 2013 that with 64% of global sales. landfill gas.Cogeneration Distributed cogeneration sources use steam turbines. microturbines or reciprocating engines[17] to turn generators. distributed energy projects can also include other renewable or low carbon fuels including biofuels. this equates to an estimated lifetime of between ten and fifteen years.[21] 20. With a Lifetime of around 60. molten carbonate fuel cell and solid oxide fuel cells using natural gas. the fuel cell micro combined heat and power passed the conventional systems in sales in 2012. which shut down at night.600 before installation. natural gas-fired fuel cells. .000 units is in place.[22] In addition. sewage gas. coal bed methane.[23] For 2013 a state subsidy for 50.[22] For a price of $22. such as the ones from FuelCell Energy and the Bloom energy server.

by far the most important solar technology for distributed generation of solar power. PV technology has improved its sunlight to electricity conversion efficiency.[24]:18. reduced the installation cost per watt as well as its energy payback time (EPBT) and levelised cost of electricity (LCOE). It produces peak power around local noon each day and its capacity factor is around 20 percent. PV systems range from distributed. but has no fuel costs. residential. to large. centralized utility-scale photovoltaic power stations. solar PV is variable and non- dispatchable.[26] . and commercial rooftop or building integrated installations. operating pollution. uses solar cells assembled into solar panels to convert sunlight into electricity.Solar power Further information: Photovoltaic system Photovoltaics.19 In recent years.[25] As most renewable energy sources and unlike coal and nuclear. The predominant PV technology is crystalline silicon. while thin-film solar cell technology accounts for about 10 percent of global photovoltaic well as greatly reduced mining-safety and operating-safety issues. and has reached grid parity in at least 19 different markets in 2014. It is a fast-growing technology doubling its worldwide installed capacity every couple of years.

but good operating safety. but distributed wind unlike utility-scale wind has much higher costs than other sources of energy. Distributed generation from wind hybrid power systems combines wind power with other DER systems.Wind power Main article: Wind power Wind turbines can be distributed energy resources or they can be built at utility scale. wind energy is variable and non-dispatchable.[27] As with solar. One such example is the integration of wind turbines into solar hybrid power systems. These have low maintenance and low pollution. Wind towers and generators have substantial insurable liabilities caused by high winds. . as wind tends to complement solar because the peak operating times for each system occur at different times of the day and year.

using modern 21st century technology.[28] . can make large amounts of new hydropower capacity available. piers. with minor environmental impact. municipal or even regional scale. either waves or flow. which minimizes environmental impacts to habitats and simplifies the permitting process. and increased demand for recreational access. However. industrial. Microhydro kinetic generators neither require dams nor impoundments. Modular and scalable Next generation kinetic energy turbines can be deployed in arrays to serve the needs on a residential. such as wave power. No construction is needed on the shoreline or sea bed. Such power generation also has minimal environmental impact and non-traditional microhydro applications can be tethered to existing construction such as docks. or similar structures. commercial.Hydro power Main articles: Small hydro and Wave 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. as they utilize the kinetic energy of water motion. bridge abutments.

has developed a process that transforms natural waste materials. . This power can be used in lieu of grid-power at the waste source (such as a treatment plant. into biofuel that can be combusted to power a steam turbine that produces power. 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. a California-based company. Inc.Waste-to-energy Main articles: Waste-to-energy and Waste-to-energy plant Municipal solid waste (MSW) and natural waste. such as sewage sludge. such as sewage sludge. farm or dairy). Additionally. Gate 5 Energy Partners.

pumped hydro.Energy storage Main article: 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).[14] Distributed energy storage systems (DESS) applications include several types of battery. and thermal energy storage.[29]:42 Access to energy storage for commercial applications is easily accessible through programs such as Energy Storage as a Service (ESaaS). . compressed air.

Other rechargeable batteries that are considered for distributed PV systems include. However. lead-acid batteries have a shorter lifetime and lower energy density. since most vehicles are parked an average of 95 percent of the time.5 times as expensive as lead-acid batteries.9 However.PV storage Common rechargeable battery technologies used in today's PV systems include. low self-discharge (4–6% per year) as well as low investment and maintenance costs. as storage devices for PV systems are stationary. have the potential to replace lead-acid batteries in the near future. their batteries could be used to let electricity flow from the car to the power lines and back. two prominent types of a molten salt and a flow battery.[30]:4 . residential PV systems. sodium–sulfur and vanadium redox batteries. In addition.[30]:4. nickel–cadmium and lithium-ion batteries. respectively. such as the Tesla Powerwall. the Li-ion batteries of plug-in electric cars may serve as future storage devices. lithium-ion batteries. due to their high reliability. Furthermore. the lower energy and power density and therefore higher weight of lead-acid batteries are not as critical as for electric vehicles. Compared to the other types. the valve regulated lead-acid battery (lead–acid battery). they are currently the predominant technology used in small-scale. as lithium-ion batteries are still being developed and about 3. 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.

000 rpm in a vacuum enclosure.000 to over 50. Flywheels can respond quickly as they store and feed back electricity into the grid in a matter of seconds.[29]:44 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.[31] An electric vehicle network has the potential to serve as a DESS.[32][33] .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.

[36] As a result. Solar PV and wind power both have intermittent and unpredictable generation. distributed generation resources would be interconnected to the same transmission grid as central stations. voltage stability. virtual power plants [37][38][39] and grid energy storage such as power to gas stations are added to the grid.Integration with the grid For reasons of reliability. such as load tap changers.[42] Short term use batteries. and control. which respond too often and wear out much more quickly than utilities anticipated.[40] Also. without any form of energy storage during times of high solar generation. This high ramp rate produces what the industry terms the duck curve (example) that is a major concern for grid operators in the future. can help to flatten the duck curve and prevent generator use fluctuation and can help to maintain voltage profile. Various technical and economic issues occur in the integration of these resources into a grid.[34] Behavior of protective devices on the grid must be examined for all combinations of distributed and central station generation. Flywheels have shown to provide excellent frequency regulation. Each distributed generation resource has its own integration issues. Another approach does not demand grid integration: stand alone hybrid systems.[35] A large scale deployment of distributed generation may affect grid-wide functions such as frequency control and allocation of reserves.[41] Storage can fix these issues if it can be implemented. Finally. so they create many stability issues for voltage and frequency. Technical problems arise in the areas of power quality. smart grid functions. reliability. companies must rapidly increase generation around the time of sunset to compensate for the loss of solar generation. protection. harmonics. These voltage issues affect mechanical grid equipment. another necessary method of aiding in integration of photovoltaics for proper distributed generation is in the use of intelligent hybrid inverters. 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. at a large enough scale of use. .[43] However.

batteries and cogen to make stand alone distributed generation systems. Local production has no electricity transmission losses on long distance power lines or energy losses from the Joule effect in transformers where in general 8-15% of the energy is lost[51] (see also cost of electricity by source). This single point of common coupling with the macrogrid can be disconnected.this method simply distributes the energy via a different route.[45] 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. Some larger installations utilize combined cycle generation. often exceeding 85%.[46][47][48] For example. The microgrid can then function . Combined cycle plants with cogeneration have the highest known thermal efficiencies.) Microgrid A microgrid is a localized grouping of electricity generation. The condenser of the steam cycle provides the heat for space heating or an absorptive chiller.[citation needed] They find favor because most buildings already burn fuels.[44] Recent work has shown that such systems have a low levelized cost of electricity.[49] This is backed up by studies in the Midwest. small turbines can be used to bring the gas pressure to domestic levels whilst extracting useful energy.[50] Cost factors Cogenerators are also more expensive per watt than central generators. Usually this consists of a gas turbine whose exhaust boils water for a steam turbine in a Rankine cycle. If the UK were to implement this countrywide an additional 2-4 GWe would become available.Stand alone hybrid systems It is now possible to combine technologies such as photovoltaics. (Note that the energy is already being generated elsewhere to provide the high initial gas pressure . In countries with high pressure gas distribution. energy storage. the Rocky Mountain Institute has proposed that there may wide scale grid defection. and loads that normally operates connected to a traditional centralized grid (macrogrid). and the cogeneration can extract more value from the fuel .

The Pacific Northwest National Laboratory designed the public available GridLAB-D tool and the Electric Power Research Institute (EPRI) designed OpenDSS to simulate the distribution system (for Microgrids). The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power. A European tool that can be used for electrical.autonomously. Tesla has implemented a solar micro-grid in the Samoan island of Ta'u. GTM Research forecasts microgrid capacity in the United States will exceed 1.000 gallons of diesel fuel. Multiple simulation tools and optimization tools exist to model the economic and electric effects of Microgrids. To plan and install Microgrids correctly. originally designed by the National Renewable Laboratory. solar. For example.[52] Generation and loads in a microgrid are usually interconnected at low voltage and it can operate in DC.[54] Micro-grids have seen implementation in a number of communities over the world. engineering modelling is needed. A professional integrated DER-CAM and OpenDSS version is available via BankableEnergy. AC. Denmark. There are also some power flow and electrical design tools guiding the Microgrid developers. fuel cells. From the point of view of the grid operator. .[55] This localized production system has helped save over 100. It is also able to sustain the island for three whole days if the sun were not to shine at all during that period. or the combination of both. wind. Another frequently used commercial economic modelling tool is Homer Energy. Micro-grids were proposed in the wake of the July 2012 India blackout:[53] Small micro-grids covering 30–50 km radius[53] Small power stations of 5–10 MW to serve the micro-grids Generate power locally to reduce dependence on long distance transmission lines and cut transmission losses. Produced heat from generation sources such as microturbines could be used for local process heating or space heating. A widely used economic optimization tool is the Distributed Energy Resources Customer Adoption Model (DER-CAM) from Lawrence Berkeley National Laboratory. powering the entire island with solar energy. or other energy sources.[56] This is a great example of how micro-grid systems can be implemented in communities to encourage renewable resource usage and localized production. heating. and process heat demand simulation is EnergyPLAN from the Aalborg University. allowing flexible trade off between the needs for heat and electric power.8 gigawatts by 2018. a connected microgrid can be controlled as if it were one entity.Microgrid generation resources can include stationary batteries. cooling.

[57][58] Legal requirements for distributed generation In 2010 Colorado enacted a law requiring that by 2020 that 3% of the power generated in Colorado utilize distributed generation of some sort. OPC is also used for the communication between different entities of DER system. b) Local Area Control (e. communication upgrades and data information systems can make it expensive. c) Supervisory (software) controller (e. some projects try to simplify the control of DER via off-the shelf products and make it usable for the mainstream (e. Voltage and Frequency Control). and distributed energy resources. communication with utility). SB 338. making it difficult for small and residential Distributed Energy Resource (DER) users to implement energy management and control systems. It is one of the IEC 61850 standards. data communication).[61] . forward looking dispatch optimization of generation and load resources).g.g. The law requires utilities to evaluate issues such as energy storage. A wide variety of complex control algorithms exist.g. using a Raspberry Pi). some of which are core Standards required for implementing smart grids. Thus.7 microgrid controller standard. Especially. that makes utility companies plan "carbon-free alternatives to gas generation" in order to meet peak demand. It uses communication services mapped to MMS as per IEC 61850-8-1 standard. Institute of Electrical and Electronics Engineers IEEE 2030.g. efficiency. California Governor Jerry Brown signed into law a bill. That concept relies on 4 blocks: a) Device Level control (e. and d) Grid Layer (e.g.[59][60] On 11 October 2017.Communication in DER systems IEC 61850-7-420 is published by IEC TC 57: Power systems management and associated information exchange.

there is strength in diversity. Smaller wind farms in more locations would allow me to adopt the newer turbines in one or two of the farms. or renewable energy - are expensive to build and have very long payback periods. With stock portfolios. organizations. If I just spent $40B on a natural gas electrical generating plant. If I build a lot of small power plants with whatever technology is appropriate. even if the price of natural gas rises.each turbine affects its neighbors . if I build several smaller plants based on renewable sources. and when it fails. After Hurricane Sandy hit the east coast. And since the farm is designed as a whole . 5. Upgradability Suppose I built a large wind farm with turbines that have an expected life of 30 years. gradually increasing my production without making a major investment in equipment. the mass production effect will drive down the cost. Economy of Scale One reason large power plants are expensive to build is that so few of them are built . 3. but it’s too costly to replace an entire farm at once.I can’t simply replace a few turbines with newer models. reducing the number of people’s a highly specialized market. Flexibility Big power plants . Diversity Distributed generation allows me to use a variety of power generating technologies.Advantages 1. . 2. 4. A distributed generation system with microgrids can localize the impact of these failures. decreasing my dependence on any one resource. falling tree branches. On the other hand.whether they’re based on fossil fuels. brownouts. and acts of terror all threaten the grid. nuclear energy. and energy. it typically leaves tens of thousands of customers (or millions in extreme cases) without power for long periods of time. a few individuals with solar panels were providing emergency power to their neighbors. I’m not likely to abandon that and switch to another fuel or a renewable source. Turbine efficiency is likely to improve over the next few years. I can easily decommission them a little at a time as I experiment with and adopt new technologies. That means the utilities are slower to adopt new technologies. Reliability Storms.

they say.Diadvantage Renewable-energy technologies like solar and wind power have begun to shake up the mix of energy sources. Without careful pricing and regulation. Advocates of a decentralized approach. known as distributed generation or distributed energy. Even homes with rooftop solar panels rely on the grid when the sun is not shining. an overexpansion of distributed generation could drive up electricity prices and unfairly shift costs to customers who cannot afford to produce their own electricity. It could also be less vulnerable to hits from stormy weather. replacing or complementing big coal. demand overload and other difficulties that have sometimes knocked out traditional systems. Some energy experts say a less centralized system would be better suited to the diverse mix of energy sources that is likely to be needed to reduce climate- warming carbon emissions. envision a day when grids will no longer be one-way systems. including rooftop solar panels and facilities that extract energy from garbage or sewage. nuclear or natural gasplants. Thousands of small generators. and are now challenging the traditional distribution system. . could feed into the system.

Concluding remarks Distributed generation offers many benefits. are clearly identified. DG are not always economically viable. including important political issues such as increasing the security of supply and reducing the emission of greenhouse gases. . A stable political course with regard to stimulation measures for DG is necessary to encourage serious investments by market parties in additional DG capacity. Although these benefits. and other additional benefits. Their viability depends heavily on energy prices and stimulation measures from European and national governments.

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