Grid Integration of DERS

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1. What are the techniques, approaches and impacts of grid integration?

Ans: Many technological, and socio-economic aspects should be considered while integrating a
new energy system or DG into the grid. Various techniques and approaches have been
developed for grid integration of DG. Integration is the broader concept over interconnection.
While interconnection only relates with the technical assessment of interaction of different
systems with the grid, integration also considers socio-economic aspects. The techniques and
approaches of grid integration are given below:
 Load forecasting is essential to determine the patterns of load demand.
 Optimal location and sizing of DG is determined using various tools and algorithm.
 Optimum connection point (point of common coupling) is determined.
 The DG unit has to be equipped with timely and well-coordinated protection systems
which includes voltage and frequency protection, fault current protection and
synchronization protection.
 Synchronization: DG unit must be equipped with devices that prevent parallel operation
with the utility system unless the voltage, phase and frequency are within the normal
limits. The principal features of this additional protection may include: automatic
synchronizing equipment of the generator output with the utility; relays to open the
circuit breaker to the utility system on faults (e.g. loss of power, ground fault) in the
distribution system; relay to control the distributed generator circuit breaker to provide
generator overcurrent protection, phase current balance protection, reverse power
protection, under- and over-frequency protection, and under and overvoltage
protection; control of speed governor, generator phase match, and generator load.
 Standalone DG system with or without energy storage system can be integrated into
the grid. Storage system provides balance to the DG system. It also improves the power
quality and reliability of DG.
 Several DG units can be interconnected through micro-grid which then can be
integrated into the grid.
The impacts of grid integration of DG on distribution system are given below:
Network capacity and congestions: The availability of carrying capacity, that is the absence of line
congestions, in the network portion where DG is inserted, may play a primary role on DG
integration. Transmission networks generally have a meshed design offering multiple pathways to
the power, whereas distribution networks are looped or have a radial structure, thus allowing only
few directions for the power flow. Therefore, considering the lower number of interconnections
and also the lower voltage levels adopted in the distribution, the capability to carry power is
significantly inferior for the distribution compared to the transmission networks. The connection
of generation capacity to transmission systems is then generally less constrained by thermal ratings
than connection to distribution systems. It is also worth noting that a proper DG insertion close to
loads does not generally lead to an increase of distribution congestions, but possibly to their
reduction. Then, the choice of the DG connection location assumes a strategic importance for this
issue.

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Losses: The DG deployment may contribute to the reduction or increase of distribution network
losses: this issue heavily depends on the DG location and type, and the network structure and
configuration. It is then essential that those elements are thoroughly considered while assessing
the DG impact on distribution losses. A low DG penetration would decrease energy losses; on the
contrary, if more DG penetrates the network, energy losses will rise. Within distribution networks
actively managing bidirectional power flows, the growth of energy losses may be controlled and
reduced, minimising its effects.
Short circuit currents: The connection of DG to the distribution system, especially via synchronous
or asynchronous machines, generally determines an increase in the level of short circuit currents.
This rise can then create problems to the operation of distribution components like line conductors,
breakers and switches, if they have been dimensioned to withstand lower short circuit currents.
These components, when carrying persisting fault currents, are subject to thermal and mechanical
stress. For this reason, it is crucial to verify the level of short circuit currents against the
components limits before physically connecting the DG unit to the grid. The most critical locations
for DG connection are those where the short circuit currents reach their maximum values, that is,
at the lines derived from the primary substation and protected by overcurrent relays. Fewer
problems with short circuit currents may arise when DG is connected via converter systems, since
such devices are capable to better control the DG fault current injections.
Protection selectivity: A further influence of DG penetration on the distribution concerns the
selectivity of the protection system. The dimensioning of the overcurrent relays protecting the lines
derived from the primary substation may need a revision/upgrade due to DG presence. In fact,
overcurrent relays, which do not distinguish the direction of currents, may unnecessarily intervene
and disconnect the line with DG for a fault occurring on another close branch (e.g. parallel line).
In this case, the selectivity of protection, which is essential for the correct operation of the system,
would be affected and the DG disconnected from the network without any need. Protection
selectivity must then be checked.
Network robustness: Strictly related to the short circuit current levels, the robustness of the
network at the proposed connection point is an important element to be analysed when planning
DG connection to the grid. The robustness of a network may vary from 'strong' to 'weak'. Dispersed
generation and large consumers can cause relatively large changes in the voltage levels on a weak
network. A strong network, on the other hand, will be less affected by changes in generation and
demand. A weak electrical system has a low fault (or short circuit) level, which is normally
measured in MVA. The strength of a point in the network is determined by the impedance between
that point and the main generators on the system: the lower this impedance, the stronger that point.
In another way, a weak point in the network is one which is further away from large amounts of
generation. The strength of a network also determines the current that will flow in the event of a
fault.
Voltage profile: The connection of DG to the distribution system leads to a modification of the
voltage profiles on the distribution network with a possible increase of the voltage along the

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connection line. This voltage modification depends on the DG unit power rating and location as
well as on the power factor and the local structure of the network: the higher the resistances of the
lines near the DG connection point, the higher the local voltage. However, there might be
situations, in which in presence of DG the voltage regulators cannot bring the voltage profiles in
the due range. For these cases, a solution may be the direct involvement of the DG units interfaced
via synchronous machines and converter systems in the line voltage and reactive power control.
To avoid unacceptable voltage rises due to converter connections, such device controllers can be
set by a ramping algorithm control instead of an on/off control.
System stability: The system stability is related to the interaction of generators and other rotating
devices in the network immediately following a fault. In particular, a DG unit shall be able to
remain connected to the grid following a fault within the system. In case of tripping, there should
be little room for disturbances due to the failure of the generator to remain in synchronism.
Islanding: In case of external power outages, the intentional islanding is a very promising
application for DG which can guarantee an uninterrupted power supply to portions of the
distribution system. Problems may arise in case of ‘unintentional islanding’: it occurs when DG
units continue to supply power to a portion of the distribution network which has been islanded
(e.g. to clear a fault). In an unintentional island, protection systems may be uncoordinated, due to
drastic change in short circuit current availability. Moreover, the procedures concerning the search
for faulted lines at distribution level may be altered by the DG supply to the island. In addition,
utility breakers may try to reconnect the island to the upstream network system when out of phase,
failing in presence of DG power supply to the island. Also, the power quality (in terms of voltage
and frequency) supplied to the island may be inadequate. Furthermore, unintentional islanding can
harm operators of the distribution utility by electrical shock hazard when mistakenly considering
the island de-energised. For all the above described reasons, it is of primary importance to set out
disconnection procedures and modes to prevent unintentional islanding.
System balancing and reserve: For a smooth and reliable power system operation, both active and
reactive power must be in balance. In this way, the power produced must instantaneously equal
the sum of the power consumed and the power lost. The power output intermittency of some RES
(especially wind) makes it difficult to instantaneously balance energy production and
consumption. As a consequence, larger reserve capacities are needed to mitigate the fluctuation of
energy production. Beside the active power deviations, also uncontrolled reactive power may
represent an issue as it may heavily affect voltage levels, especially in emergency conditions.
Power quality: DG connection via interfaces like power electronic converters may cause power
quality issues like voltage fluctuations (flickers) and distortions (harmonics) endangering the
correct operation of electric devices. Modern, solid state electronics-based filters are a feasible
option nowadays to mitigate such disturbances and may then help to resolve these power quality
issues.
The impacts of DG integration on transmission system are given below:
Voltage levels: DG connection may lead to the change or distortion of the profiles of voltage at
transmission nodes. This may occur especially if the transmission network is generally ‘weak’ and

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does not have enough large generating capacity to control voltages. Vice versa, the effects of DG
connection on transmission voltage profiles are negligible in a ‘strong’ system with a sufficient
large generation needed for voltage control.
Losses: The impact that DG may have on transmission losses is strongly influenced by the DG
location, but also depends on network topology as well as on DG size and type. DG deployment
is expected with more probability to generally lead to transmission losses reduction, than
distribution losses decrease.
Congestions: The impact of DG on transmission congestions also depends on DG location.
Strategically located DG units, serving customers connected to the distribution system or on site,
may utilise less the upstream transmission system and then help relieving overloaded branches in
the transmission network.
Contingency analysis effects: The results of the contingency analysis based on deterministic
approaches may lead to the conclusion that DG operation produces more negative effects than
actually in the real operation. This might occur considering the extreme cases, for example with
all the wind units producing their maximum power output at the same time and causing overloads
on the system as a post-fault result. In these cases, a sensitivity analysis based on probabilistic
methods would be required to get a more realistic evaluation of the DG effects in the contingency
analysis.
Protection effects: Especially in case of large DG penetration in a confined area, a failure of DG
protection devices may lead to several system operation problems. In fact, in case of a fault on the
upstream transmission system, there might be a propagation of its effects on the downstream
distribution. Then, the DG may be disconnected from the network with the resulting sudden
increases of power flows from upstream in such restricted grid portion. These overloads may lead
to the cascading activation of overcurrent relays on distribution and transmission systems. Possible
negative effects may also occur on voltage levels in the area of disconnected DG with collapse
phenomena. To avoid these problems, it is essential to coordinate the operation of the protection
schemes of transmission, distribution and DG connection systems. This can be done through an
appropriate strategy of protection time delays, considering however the local conditions and not
altering the protections selectivity.
Dynamic effects: The effects of DG insertion on the dynamic system behaviour depend on the DG
type, location and connection interface (synchronous, asynchronous or converter) as well as on the
critical disturbances. It is important to highlight that DG units connected via power electronic
converters may react very quickly to changes in the system. This is due to a very low inertia of
these devices and there might be stability issues when they interact with the power system (which
is stiff and has a high inertia to changes).

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2. What are the factors that should be considered for grid integration?
Ans: The factors that should be considered for grid integration of DG are given below:
a) Voltage rise effect:
The voltage rise effect is a key factor that limits the amount of additional DG capacity that
can be connected to rural distribution networks.
b) Power quality:
Two aspects of power quality are usually considered to be important: (1) transient voltage
variations and (2) harmonic distortion of the network voltage. Depending on the particu-
lar circumstance, DG plant can either decrease or increase the quality of the voltage
received by other users of the distribution network. Power quality is an increasingly
important issue and generation is generally subject to the same regulations as loads. This
tends to work well in practice and it is generally possible to meet the required standards by
careful design. The effect of increasing the network fault level by adding generation often
leads to improved power quality. A notable exception is that a single large DG, e.g. a wind
turbine, on a weak network may lead to power quality problems particularly during starting
and stopping.
c) Protection:
A number of different aspects of DG protection can be identified: Protection of the
generation equipment from internal faults; protection of the faulted distribution network
from fault currents supplied by the DG; anti-islanding or loss-of-mains protection (islanded
operation of DG will be possible in future as penetration of DG increases) and impact of
DG on existing distribution system protection. All these aspects are important and needs
to be addressed in connecting DG to the distributed system.
d) Stability:
Traditionally, distribution network design did not need to con- sider issues of stability as
the network was passive and remained stable under most circumstances provided the
transmission net- work was itself stable. Even at present stability is hardly considered when
assessing renewable distributed generation schemes. However, this is likely to change as
the penetration of these schemes increases and their contribution to network security
becomes greater. The areas that need to be considered include transient (first swing
stability) as well as long term dynamic stability and voltage collapse.
e) Optimal location: The optimal placement of DG should be determined by using various
optimization tools and algorithm such as generic algorithm, particle swamp optimization,
etc. Optimal location of DG is essential for the proper integration into grid.
Commercial and economic factors are also considered for grid integration of DG.

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3. Distingue the Central and Distributed Energy System with their advantages and
disadvantages.
Ans: The differences between Central and Distributed Energy System are given below:

Value Distributed Generations Centralized Generations

Centralized Operated to allow a facility to Though operated to provide

Generations generate some or all of its continuous power, its
power on a relatively characteristics results in:
continuous basis. Important Low electric efficiency as a
DG characteristics for result of high losses at the
continuous power include: transmission system, High
High electric efficiency, Low emissions
emissions
Premium power It provides electricity service at a Provision of power at low
higher level of reliability and reliability and power quality
power quality than typically cannot be guaranteed due to
available from the grid inherent high power losses
Cost Low variable cost High variable cost
Low maintenance costs High maintenance cost

Peaking power Operated between 50-3000 It is operated unintermittently at

hours per year to reduce overall
electricity costs.
Resiliency More resilient since it serves
low power demands continuously
Sustainability Sources of power makes it more
sustainable
various peak powers.
Less resilient but serves high
power demands continuously
Sources of power results in
less sustainability

4. What are the differences between grid connected and Isolated Energy Systems?
Ans: The differences between grid connected and isolated energy system are given below:
Grid connected system Isolated energy system
Maximum utilisation of the available Low utilisation of the available potential,
hydropower potential. continuous power capacity (some few
percent of the production of a grid connected
system at the same place
Plant factor limited by the available flow Plant factor limited by the demand (typically
(about 0.5 to 0.6) 0.15 ... 0.3)
Low generation costs Higher generation costs
Tariff agreed with utility Tariff depends on the acceptance of the end
users

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Operation: (usually) full automatic control, Operation: Manually operated (operator),

often managed by an investor; Billing to often managed by a community; Billing to
utility (1 costumer); When grid is down: no various end users (meter reading required)
possibility to sell the produced energy
Maintenance: In dry season; Power plant Maintenance: Power plant downtime:
downtime: consumers still have electricity
Consumers do have no electricity; Includes
(from the grid) the maintenance of the distribution grid and
the end user connections
High technical requirements, approved by Utilisation of simpler technology possible
utility

5. Write the importance of Hybrid Energy System with suitable case study.
Ans: Hybrid energy system is the combination of two or more forms of energy generation
system to generate sustainable and reliable energy. As renewable energy sources are variable
and unpredictable, it is difficult to control the power generation from such sources. Standalone
renewable energy system such as wind, solar may not be able to supply demand continuously
due to climatic conditions. Such variability and fluctuation issues can be prevented by
combining these renewable energy sources and energy storage system to form a hybrid system.
Hybrid energy system can be used to supply electricity and heat to the people of remote areas
who are derived from grid electricity.
Some of the benefits of hybrid energy system are given below:
 Optimize performance of overall scheme as compared to individual technologies.
 Minimize mismatch between energy generation and usage.
 Reduce overall demand or waste
 Reduce carbon emissions
 Optimize cost of installation
 It increases efficiency of the system
 It is reliable and clean energy

Figure: Solar PV and wind Hybrid energy system

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Wind-Solar Hybrid System: A case study of Dhaubadi Village, Nawalparasi, Nepal

Nepal’s first wind-solar hybrid energy system was installed in Dhaubadi village of Nawalparasi
district in December 2011 under Asian Development Bank’s regional technical assistance. It
provides electricity to 46 rural households of Dhaubadi village. It was the pilot project for hybrid
wind solar system in Nepal. Two sets of 5 KW wind turbines and 2 KWp of solar PV panels were
installed to satisfy village electricity demand of 43.6 KWh per day. The electricity from mini-grid
has helped the villagers in Dhaubadi to save time and money spent on their search for firewood. It
has also eased the hard life by allowing women to cook and clean, children to study after dark and
improved overall productivity of households.

6. What are the processes for conducting a grid integration study?

Ans: A grid integration study is an analytical framework for evaluating a power system with high
levels of variable RE. Grid integration studies fall into three general categories: capacity
expansion, production cost, and power flow studies. The choice of which study to implement
depends on the questions that are most applicable to a power system’s context and priorities. The
processes for conducting a grid integration study involves several iterative activities which are
given below:
Collecting data: Data of wind and/or solar resources, demand, and the characteristics of the
existing and planned power system is a fundamental step that provides modelers with the
information that is required to perform the analyses and generate result.
Scenario development: It articulates the questions of greatest interest for the study and should be
informed by stakeholder input. Typically, study scenarios are established in relation to a base or
business-as-usual case, under which policies and operational practices will remain relatively
unchanged from current practices with respect to their treatment of VRE.
Power System Modeling: Following these foundational actions, analysts model the power system
under different scenarios and perform a variety of assessments to appropriately quantify costs,
reliability, and/or other impacts. The development or procurement of an appropriate modeling
platform (specific to capacity expansion, production cost, or power flow studies) is an important
component of this step.
Analysis and Reporting: The final step is analysis and reporting of study results, with the goal of
providing actionable information to decision makers that allows them to translate the outputs of a
grid integration study into effective policy, regulation, and system operation.
Conducting a grid integration study is a significant undertaking. The timeframe as well as the cost
depend on the scope of the study, extent of stakeholder engagement, data availability, and level of
capacity building needed to develop modeling expertise. Stakeholder engagement throughout all
phases of a grid integration study will help ensure that study assumptions are grounded in reality
and that the results have enough credibility to guide power sector transformation.

7. Can the power system be reliably operated with wind and solar energy power plant?
Ans: Solar and Wind energy both are intermittent and variable energy sources. The output energy
generated from them is always fluctuating and partially unpredictable. Wind does not blow
throughout the day and sun does not shine the entire day. Incorporating the individual energy
source will not be a suitable choice. A hybrid arrangement of combining the power harnessed from

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both the wind and the sun with implementation of battery storage system can be a much more
reliable and realistic power source. The load can still be powered using the stored energy in the
batteries even when there is no sun or wind. Hybrid systems are usually built for design of systems
with lowest possible cost and also with maximum reliability. The high cost of solar PV cells makes
it less competent for larger capacity designs. This is where the wind turbine comes into the picture,
the main feature being its cheap cost as compared to the PV cells. Battery system is needed to store
solar and wind energy produced during the day time. During night time, the presence of wind is
an added advantage, which increases the reliability of the system. In the monsoon seasons, the
effect of sun is less at the site and thus it is apt to use a hybrid wind solar system. The hybrid model
of wind and solar is shown below. The ac power generated by wind turbine is converted into dc
by rectifier and used to charge the battery. The solar and wind is interconnected through a dc bus.
Hybrid controller is provided to control the system. Inverter is used to convert dc into ac power to
supply the ac loads.

8. Can we optimize the energy resources by creating regional electricity grids? Explain
briefly.
Ans: The power quality and reliability of the renewable energy sources increase if various
forms of these energy sources are combinedly used to generate energy. This will also insure
the optimum utilization of these energy resources as well as to supply the required demand.
An individual standalone energy system is not always reliable for supplying the demand. These
resources are location dependent, variable and partially unpredictable. To make the optimum
utilization of non-conventional energy resources such as solar, wind, biomass, etc. they can be
interconnected through mini-grid to supply the load. Regional grids are mini-grids supply
network designed to supply electrical and heat loads for a small community. A mini-grid
consists of different distributed generation systems, controller and energy storage system to
provide the balance to the system. The operation and control of such grids are carried out by
Micro-source controller and Central controller. Micro-source controller independently control
the power flow and load side voltage profile of micro-source in response of any disturbance
and changes. Central controller executes overall control of mini-grid through micro-source

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controller. The energy optimization of grid is ensured by central controller. The use of mini-
grid minimizes distribution losses and non-renewable energy consumption. The model of
regional mini-grid is shown below.

9. Write down the importance of Energy management module and protection

coordination module in DG planning.
Ans: The Central Controller exerts its control through two basic modules, viz.
(i) Energy Management Module(EMM) and
(ii) Protection Coordination Module(PCM)
(i) Energy manager module (EMM): The EMM incorporates various control functions for
controlling the energy optimal operation of the microgrid. The number of control functions can
always be increased to achieve finer and more sophisticated control, though adding to design
complexity.
Voltage control: Microgrid loads and their power factors are normally controlled by changing
the voltage magnitude and phase angle of the microsources. To avoid extra complexity in
EMM control scheme, local voltage and power factor controls of microsources are executed
through the MCs and not through the EMM. EMM only provides the voltage set point to the
MCs for certain critical buses of the Microgrid. When distribution feeders are not fully loaded
in a Microgrid there may be a tendency of voltage rise on the feeders. To arrest the voltage
rise, the MCs constantly monitor the local voltage and provide the feedback to EMM.
Following this the EMM dispatches the necessary voltage set points to the MCs to carry out
the required voltage regulation. The aim of this control strategy is to make the Microgrid appear

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to the main utility grid as an aggregate of microsources and loads operating as a controlled unit
at unity power factor.
Power factor control: Unlike conventional synchronous generators, microsources usually do
not have any built-in power factor control. Power factor being load dependent, all the MCs
have power factor control feature as a function of load tracking. However, the power electronic
interface of some microsources may have built-in power factor control for controlling the phase
angle of supplied current and minimising harmonic distortions. Power factor control feature is
entirely incorporated in the MCs so that the control does not require any command from the
EMM except the voltage set point.
Prime mover speed control: This feature is applicable for microsources with rotating prime
movers such as microturbines and wind turbines. To accommodate load variation in the
Microgrid within its capacity, the microsource prime mover must change its speed to obtain
power balance for the new loading. For this, a constant speed prime mover should change its
fuel input. This would again affect the efficiency of the prime mover as efficiency is a function
of fuel usage and speed. Therefore, prime mover speed control should ensure power generation
at optimum efficiency for the microsource. To keep EMM design simple, this control is also
executed through the MCs.
Frequency regulation: In conventional power systems, the frequency of the generated voltage
depends on the speed of the synchronous generators. On the other hand, for Microgrids, the
microsources can generate power at any desired frequency with the help of the power electronic
converter systems of their MCs. In grid-connected mode, the MCs do not need to exert P-f
control through their P-f droop characteristics because frequency variation is taken care of by
the utility itself. However, in standalone mode, the MCs need to exert this control for
accommodating load variations at constant system frequency. Hence, for both the operating
modes, the EMM does not interfere with the frequency control feature of the MCs. However,
the EMM constantly monitors the Microgrid frequency and if any frequency drop is not
restored by the MCs within a preset time, the EMM performs rapid load shedding on an
emergency basis to achieve power balance in order to ensure Microgrid stability.
(ii) Protection co-ordination module (PCM): PCM supervises the overall protection for the
Microgrid. Protection philosophy for Microgrid is different from conventional distribution
networks though both are radial systems. This is because of the following differences:
(1) Microgrids contain both generators and loads resulting in bidirectional power flow through
the protective devices in a radial system.
(2) Passive distribution network turns into an active one due to the presence of microsources.
(3) Microgrids undergo a considerable change in its short-circuit capacity when it changes
from grid-connected mode to stand-alone mode. This has profound effect on conventional
overcurrent relays that operate on short-circuit current sensing.
A key feature of PCM is its ability to distinguish between the protection requirements for the
two operating modes and address the contingencies accordingly.

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Protection scheme for grid-connected mode: In grid-connected mode, the PCM detects and
acts for five possible events. These are (i) normal condition, (ii) Microgrid feeder fault, (iii)
utility fault, (iv) Microgrid bus fault and (v) Re-synchronisation. PCM takes into account the
response times of individual microsources, as well as that of the PCC (point of common
coupling) circuit breaker CB4.
Protection scheme for stand-alone mode: When the Microgrid operates in stand-alone mode,
the short-circuit level at the Microgrid bus reduces remarkably. This is because the
microsources with power electronic converter systems may only supply up to 200% of the load
current to a fault. Thus, a stand-alone Microgrid provides much lower fault currents, as
compared to a grid-connected Microgrid. Low fault currents may not be adequately picked up
by standard overcurrent relays used in conventional protection systems. Therefore, this is likely
to have significant impact on the fault detection capability of the protective relays of the
Microgrid based on fault current sensing. Standard relays may take a long time to pick up lower
fault currents or may not respond at all. Thus, alternate fault detection schemes like impedance
protection, differential current/voltage relaying, zero sequence current/voltage relaying,
directional overcurrent/ earth-fault schemes may be adopted for protection of stand-alone
Microgrids. The design and operation of PCM must take into account the complexity of the
Microgrid scheme, the number of microsources, the types of generation technologies, the
number of priority loads and the response characteristics of the protective devices.
10. Write the challenges of wind and solar power on grid integration.
Ans: Wind and solar generation both experience intermittency, a combination of non-
controllable variability and partial unpredictability, and depend on resources that are location-
dependent [per11]. These three distinct aspects, explained below, each create distinct
challenges for generation owners and grid operators in integrating wind and solar generation.
Non-controllable variability: Wind and solar output varies in a way that generation operators
cannot control, because wind speeds and available sunlight may vary from moment to moment,
affecting moment-tomoment power output. This fl uctuation in power output results in the need
for additional energy to balance supply and demand on the grid on an instantaneous basis, as
well as ancillary services such as frequency regulation and voltage support.
Partial unpredictability: The availability of wind and sunlight is partially unpredictable. A wind
turbine may only produce electricity when the wind is blowing, and solar PV systems require
the presence of sunlight in order to operate. Unpredictability can be managed through
improved weather and generation forecasting technologies, the maintenance of reserves that
stand ready to provide additional power when RE generation produces less energy than
predicted, and the availability of dispatchable load to “soak up” excess power when RE
generation produces more energy than predicted.
Location dependence: The best wind and solar resources are based in specific locations and,
unlike coal, gas, oil or uranium, cannot be transported to a generation site that is grid-optimal.
Generation must be co-located with the resource itself, and often these locations are far from
the places where the power will ultimately be used. New transmission capacity is often required

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to connect wind and solar resources to the rest of the grid. Transmission costs are especially
important for offshore wind resources, and such lines often necessitate the use of special
technologies not found in land-based transmission lines.
Because the presence of wind and sunlight are both temporally and spatially outside human
control, integrating wind and solar generation resources into the electricity grid involves
managing other controllable operations that may affect many other parts of the grid, including
conventional generation. These operations and activities occur along a multitude of time scales,
from seconds to years, and include new dispatch strategies for rampable generation resources,
load management, provision of ancillary services for frequency and voltage control, expansion
of transmission capacity, utilization of energy storage technologies, and linking of grid
operator dispatch planning with weather and resource forecasting.
11. How will grid integration impact consumers? Explain with suitable example.
Ans: There are positive and negative impacts of grid integration of DG depending upon the
distribution system operating characteristics and the DG characteristics. The positive impacts
of grid integration are: voltage support and improved quality, loss reduction, transmission and
distribution capacity release, improved utility system reliability, spinning reserve, peak
shaving, less environmental pollution, etc. Achieving above benefits is in practice much more
difficult than is often realized. The DG sources must be reliable, dispatchable, of optimum size
and at the proper placement. They must meet various other operating criteria. The power
system operations may be adversely impacted by the introduction of DG if certain minimum
standards are maintained. The customers have to face technical and commercial issues due to
grid integration as DG sources output are variable and fluctuating. The technical issues are
voltage regulation, voltage flicker, harmonic distortion, overcurrent protection, islanding,
stability, change in power flow, etc. Customers having own DG systems can sell the excess of
energy to utility. They can get various services from grid such as power quality improvement,
voltage profile improvement, etc. However, the grid customers may have to pay more tariff for
grid services used by DG customers. There should be proper tariff allocation.
12. Can a remote power generation plant be directly connected to transmission lines
instead of installing new lines to feed the S/S?
Ans: Various factors such as generation capacity, distance, load center, etc. determines the
connection of power plant to the transmission lines. If the power plant has a large power
generating capacity (say hundreds of MW) and there are no load centres nearby, then it can be
connected to the transmission lines. If the load center exists, then a substation is economically
and technically good choice. The substation improves power quality, power factor, ensures
protection, makes service reliable and reduces transmission line losses. If the power generation
plant is of low capacity or a DG, then it is technically and economically better choice to feed
power through a substation.

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13. Is grid interconnection of distributed energy generation sources at distribution level

possible in country like Nepal?
Ans: The electrical energy provided by distribution system in Nepal lags behind in terms of
quality and reliability. The losses are high at distribution level. There are opportunities for DG
integration in the distribution level that can ensure continuity of supply, increases efficiency,
improve the power quality and voltage profile. However, there are challenges that should be
coped with for grid integration of DG at distribution level. There is need for the formulation
of policy and standards for grid integration. The technical aspects of synchronization, load
balance, protection are most important. The advanced new technologies for the control and
operation of DG are required. The private sector companies and entrepreneurs should be
motivated to invest for DG projects. Nepal Electricity Authority is in preparation to launch
energy authority’s Nepal Grid Solar and Energy Efficiency Project. The project has aims of
developing and installing 25MW of PV projects within Nepal in order to feed power directly
to the NEA, as well as the development of a Distribution Loss Reduction Master Plan that will
look to improve upon the power losses within the grid. There is a significant interest to develop
DG market in towns that have reasonable load and productive usage potential but faces
challenges that include designing innovative business models given low tariffs,
operationalization &management, and insufficient maintenance.
14. What are the significance of islanding in interconnected grid? How can it help to
survive from grid collapse?

Ans: Islanding is the process whereby a power system is spilt into 2 or more segments each
with its own generation. Islanding can be defined as a condition in which a DG remains
energized in a localized area while the remainder of the electric power system loses power,a
situation that can cause damaging surges and danger to linemen who might not realize that
power is still present. Islanding is a deliberate emergency measure, the result of automatic
protection or control action or the result of human error. Islanding may be planned (intentional)
or unplanned (unintentional). Islanding is a major barrier to the development of micro-grids
because it’s time consuming and expensive to evaluate. There are several over-simplified
screening procedures currently used to evaluate the risk of islanding. Unintentional islanding
occurs primarily due to fault in the system, blackouts, voltage drops, short-circuit, etc.
Unintentional islanding of distributed generation may result in power quality issues,
interference with grid protection devices, equipment damage, and personnel safety hazards.
Anti-islanding is the use of relays or controls to prevent the continued existence of an
unintentional island. Islanding detection relays has the task to detect islanding and initiate
action in order to protect the grid from ending up in an unintended island. Control of generated
power and frequency based tripping or energization of load is important. Reconnection to the
main grid is possible when the fault is cleared and system is restored.

Islands which have survived can be used for starting other units. Grid collapse occurs when
demand exceeds supply in a highly interconnected grid. Islanding of such very high local
demand area will enable the remainder of the grid to survive. Severe fault or generation outage
may also cause grid collapse. Separating healthy part in the system during fault at pre-
determined points to form islands. To ensure supply of power, in a complex system, intentional

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islanding becomes necessary to save healthy part to recover from the blackout. Islanding of
DG during failure of grid will enable them to continue where demand is less than supply.

15. What is the reason for voltage rise in distribution side when penetrating solar power
into the grid?

Ans: Voltage control is a critical issue for large scale PV integration in the LV grids. The
resistivity of the residential LV grids makes the voltage control differs from high voltage (HV)
transmission systems. Considering a simple network as shown in Figure, ignoring the charging
effect of the line, in HV system, the magnitude of the resistance is much smaller than the
reactance, whilst it is an opposite situation in LV grids. In Figure below, considering receiving
end voltage vector ∆𝑉𝑇̇ is at standard position, the expression of the voltage drop across the
line is

𝑃+𝑗𝑄 ∗
∆𝑉 = 𝑖(𝑅 + 𝑗𝑋) = ( ) (𝑅 + 𝑗𝑋) [1]
𝑉𝑇

𝑃𝑅+𝑄𝑋 𝑃𝑋−𝑄𝑅
= +𝑗
𝑉𝑇 𝑉𝑇

In HV systems, as X/R ratio is high(X>>R), the voltage drop can be expressed by ignoring the
resistance effect,

𝑄𝑋 𝑃𝑋 𝑄𝑋
∆𝑉̇ = 𝑉 + 𝑗 𝑉 and ∆𝑉̇ ≈ 𝑉 [2]
𝑇 𝑇 𝑇

Where ∆𝑉̇ can be approximated by ignoring the effect of imaginary component PX/VT. In LV
systems, due to the lower X/R ratios, the effect of resistance is no longer negligible, and the
assumptions taken for HV systems are no longer valid. This difference is also illustrated in Fig.
1. Ignoring the imaginary part of (1), ∆𝑉̇in LV system maybe approximately given as:

𝑃𝑅+𝑄𝑋
∆𝑉̇ = 𝑉 [3]
𝑇

The total derivative ∆𝑉̇ of with respect to power transfer is

𝜕|∆𝑉| ̇𝜕|∆𝑉| 𝑅 𝑋 ̇
𝑑|∆𝑉̇ | = 𝜕𝑃 𝑑𝑃 + 𝑗 𝜕𝑄 𝑑𝑄 = 𝑉 𝑑𝑃 + 𝑉 𝑑𝑄 [4]
𝑇 𝑇

From (4), it can be seen that an increment of active power transmission will automatically
increase voltage difference; while by applying negative reactive power increment, this voltage
magnitude difference may be reduced. For a system with PV installations, PV can be seen as
the generator at the sending end of Fig. 1 with voltage 𝑉𝑆̇ , while the receiving end is the
upstream system. If PV is injecting power into the system, ignoring the losses on the line, the
power is the same seen at the receiving end and thus voltage rise occurs.

The PV generator connected at distribution side injects active power at unity power factor
which causes voltage rise. The relative voltage rise is approximately equal to

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∆𝑉 𝑅×𝑃𝑔𝑒𝑛
= 𝑉2 Where R is the source resistance at the terminals
𝑉
of PV generator, Pgen is the injected active power and V is the nominal voltage.

Figure: Comparing the voltage drop characteristics at HV transmission and LV grid due to X/R
ratios

16. What are the issues that will shape the future global energy market?

Ans: Different factors such as technological advancement, environmental impacts, consumers

behavior, etc. have played key role for the shaping the energy growth patterns in this century.
The excessive dependent on fossil fuels for energy generation has will cause their extinction
one day as they are non-renewable. Moreover, global warming and climate change are major
issues caused by use of fossil fuels. Thus there is rapid development of renewable energy
sources which are clean. Several factors such as deregulation, global warming, sustainability,
efficiency, energy price will continue to dominate the future energy trends. The major issues
that will shape the future global energy market are given below:

 Need for Green and Clean renewable energy

 Global warming
 Energy crisis
 Excessive use of fossil fuel
 Power quality and Reliability
 Energy Security
 Pressure to reduce energy price
 Competitiveness among power companies and energy players
 Sustainability and resilience
 Energy Demand
 Different cost of fuel and generation mix infrastructure
 Nuclear power upgrading or decommissioning
 Energy Efficiency

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 Penetration of renewable energies

 Geopolitics

Long Question

1. Which of the power generating techniques is best to provide energy access to a

remote area, and why? Please provide you answer with significant reasons.

Ans: The grid extension can be very expensive in many locations in remote areas which
makes autonomous electrification better choice. Remote areas with relatively small
communities generally show significant variation between the daytime peak loads and
minimum night-time loads. Diesel powered electric generators are typically sized to meet
the peak demand during the evening but must run at very low loads during “off-peak” hours
during the day and night. This low load operation results in poor fuel efficiency and
increased maintenance. Moreover, they also cause emissions and environmental pollution.
Isolated power systems using large amounts of renewable energy technologies such as
wind and solar photovoltaic (PV) are emerging as technically reliable options for electricity
supply. Power systems using multiple generation sources are known as “hybrid power
systems” which incorporate different energy sources such as wind, PV, diesel generators,
battery or other types of storage, power electronics, system control and remote monitoring.
Local available renewable energy resources such as solar, wind, micro-hydro, biomass, etc.
can be utilized to generate electrical energy. The plant capacity varies with the demand.
Standalone energy system or Hybrid energy system or micro-grid schemes can be used
depending upon the load patterns and available resources. If the area is sparsely populated
with low density, then Solar Home System will be good choice. Photovoltaic devices
convert solar energy directly into electricity for use in a variety of applications. PV costs
are coming down, and the range of viable and cost effective applications is increasing. SHS
will provide efficient reliable and independent energy. If the demand is higher, then two or
more energy system can interconnected through micro-grid along with storage system to
supply the demand. Micro-grid makes power transfer more reliable and efficient. Storage
system improves the power quality and ensures the continuous power supply. Solar
electricity (PV) is viable where there is a need for small amounts of electricity and where
there are constant, high levels of solar radiation. Other renewable energy technologies such
as hydropower and wind power depend on availability of flowing water or wind resources
at the location. Hybrid energy systems integrate renewable energy technologies such as
solar photovoltaic and wind with diesel generators, inverters and batteries to provide grid
quality power in remote areas not connected to a utility grid. Such an isolated grid known
as Micro-grid is widely recognized as the island electrification technology for the 21st
century. Hybrid energy system can be developed by combining two renewable energy
sources such as PV and wind or renewable and conventional source like PV and diesel
generator to provide efficient and reliable power. Such hybrid system optimize
performance of overall scheme as compared to individual technologies. It also minimizes
the mismatch between generation and demand. Such energy systems provides lighting
heating and cooking facilities which eradicates the dependency on firewood.
Communication facilities will also be developed. Small factories such as bakery, saw mill,
rice mill can also be supplied with electrical energy.

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Figure: Solar Home System

Figure: Hybrid energy system

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2. Suppose you are going to interconnect a PV power plant to the grid. Prepare a
report to discuss the positive and negative impacts of this project.

Ans: The increasing demand and focus for clean energy has caused the rapid development
of solar PV system. The thirst for energy has brought out the existence of grid connected
solar photovoltaic systems to meet out the reduction in the energy bill, which act as a cost
saving methodology with simultaneous gain of incentives from the government for
transporting the power to the national grid. The penetration of solar PV on grid has been
carried out. There are positive as well as negative impacts of integrating a PV system to
the grid which are described below:

Figure: Grid connected PV system

Positive Impacts

The proper size, location and operating characteristics considered during PV penetration
has following positive impacts:

 Provide energy at the load side reducing feeder active power loading and hence
improves voltage profile.
 Delay the operation of shunt capacitors and series voltage regulators and thus
increase their lifetime.
 Reduces loss in the distribution feeders if optimally sized and located.
 Increase the load carrying capability.
 Peak Shaving
 Fuel Savings
 EmissionsCurtailment

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Negative impacts

The high penetration level of PV imposes several negative impacts on power system. These
impacts depends upon size and location of PV system.

Voltage Rise: In the traditional distribution networks, voltage along a distribution feeder
typically reduces from the voltage at the substation bus, along the feeder, due to voltage drop
across the line segments. If solar PV resources are integrated, loads are served locally
resulting in less current flowing through the feeders. This reduces the amount of voltage
drop and power losses and as a result voltage profile is improved. However, if the
generation from PV resources are high enough to offset the loads on the feeder, the
surplus power will create voltage rise. This effect may be observed at midday when
total PV generation in the feeder is higher than the feeder load demand. With cluster
based installation of PV, the voltage rise impact may propagate to upstream MV
networks.

Reverse Power Flow: LV distribution feeders are typically radial and the direction of the power
flow is, therefore, from substation towards the loads. Similar to the voltage rise impact, power
flow direction would be changed when PV generation exceeds the load demand. Reverse
power flow is observed at midday due to excess output
from solar PV.

Variation of Feeder Power Loss: Power losses would typically decrease in distribution feeder
with solar PV resources integration as less amount of power is imported from the substation.
However, with a high penetration of PV cluster, if the reverse power flow is higher than the
power flow without PV, an increase in feeder power loss may be observed. Power loss may
vary due to the variation of the PV output at the different time of the day.

Voltage Unbalance: Allocation of PV inverters among different phases of a distribution feeder

is mainly controlled by the choice of the customers. The distribution of PV generation in a PV
cluster therefore may not be equal at all the phases. This may deteriorate the existing voltage
unbalance factor of the network. The unbalance factor may vary from time
to time due to the variations of solar irradiance and PV output.

Change in Tap Operations: Tapping operation of voltage regulators in the MV distribution

feeders is performed in response to changes in voltage at a remote position downstream to the
regulator (or often referred to as the “load centre”). Voltage regulators may tap up or down
their tap positions to keep voltage at the load centre within a bandwidth of voltage upper and
lower limits. Voltage rise caused by PV clusters may require the regulators to operate
during midday to keep the voltage profile below the upper limit.

Stability issues: Due to the unpredictability, the power system has to deal with uncontrollable
generation not only with uncontrollable demand. Hence, greater load stability problem may
occur. PV system don’t have rotating mass, thus they don’t have inertia and their behavior is

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completely controlled by the characteristics of the interfacing inverter. High penetration of PV

increases damping ratio of system. Thus, oscillation in the system decreases.

Difficulty in Islanding detection: Inverter fault current capacity is very low. The decrease in
the fault current level affects the operation of overcurrent relay. This disturbs the protection
coordination of protective devices which causes difficulty in islanding detection.

Electromagnetic Interference Issues: High switching frequency of PV inverter cause

electromagnetic interference with neighboring circuits such as capacitor banks, converter,
protection devices.

3. Currently, around 1.3 billion people are living without access to modern energy. Can we
connect them? How? Prepare a concept paper to provide an efficient, sustainable,
reliable energy to the people.

Ans: In this modernized and industrialized world, the energy sector has achieved advancements
and growth of new technologies and schemes for energy generation. There is rapid development
of renewable energy infrastructures rather than conventional energy sources to obtain clean energy
and prevent energy crisis. However, people throughout this world are unable to use the facility of
modern electricity due to various technical and socio-economic reasons. Across the world as many
as 1.3 billion people lack access to modern electricity. Many of these people live in remote or rural
areas where it is often too difficult or costly to transmit power using standard extensions of the
power grid. The lack of access to this vital resource has hampered economic progress and is widely
considered to be a major contribution to the continued poverty in these areas. Though there has
been extensive penetration of some modern technologies, such as mobile telephones and
smartphones, the electricity required to operate these devices remains a serious challenge.

Fortunately, there do exist some solutions to bring electricity to these areas. The more advanced
and complete solutions involve the construction of a micro-grid. These systems mimic the structure
of a traditional power grid with centralized and continuous generation and allow for relatively high
consumption, including home appliances and even industrial usage. They also do require a
considerable capital investment in the range of millions of dollars and specialized maintenance.
The other class of solutions relies upon truly distributed generation and are at much smaller scale.
These solutions provide only sufficient electricity for a few extremely basic necessities such as
LED lighting. They are typically simple and inexpensive methods of electricity generation that
require little to no expertise to set up and operate. [3] Both the micro- grid and off-grid solutions
can have tremendous impact on economic development and both rely upon a combination of
traditional and state-of-the-art technologies.

Off Grid Solutions

There exist a vast array of methods of generating electricity completely independently of a grid
infrastructure. Here we will review some of the economically favorable and interesting methods
for remote and rural areas.

Diesel Generators: The modern diesel generator has proven to be an exceptionally versatile and
robust method of providing moderate amounts of electrical generation. From critical backup

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generators at hospitals and nuclear power plants to diesel-electric locomotives and ships, the high
power-to-weight ratio and reliability of diesel generators has made them very popular. The fuel is
relatively common and can be stabilized, and has high volumetric and weight energy density.
There are, however, some serious drawbacks to diesel generators for rural, off-grid electrification.
Fuel can be extremely expensive, or completely inaccessible. An estimate of the energy cost for a
diesel generator in Africa suggests the cost can be as high as USD $3.00/kWh due to the difficulty
to transporting fuel, among other issues. Maintenance is non-trivial, especially where spare parts
may be unavailable. Finally, the generators are often noisy, highly polluting and have low overall
efficiency.

Micro/pico-hydro: Recent developments have made the age old technology of water power more
useful for off- grid, small scale electrical power. These systems range in size from ~100W to
~10kW. The smallest systems rely on simple paddle wheels mated to off the shelf generators, such
as modified automobile alternators or pumps driven in reverse. They may require only immersion
in a rapidly moving stream, or possibly a simple pipe to build additional water pressure with a
controlled descent. The amount of power provided by these generators is sufficient to recharge
small battery powered electronic devices such as mobile phones and LED lanterns. Larger micro-
hydro plants require a small dam (often constructed of locally available materials) and can provide
power for appliances such as refrigerators and desktop computers. Both the small and somewhat
larger hydroelectric generation suffer from a critical problem - they rely upon consistent flow of
water. Without the buffer afforded by a large dam, these generators can fail during times of drought
or dry season. They are otherwise quite environmentally friendly, simple to maintain and do not
require fuel. In one example the installation cost per household for a 2.2kW system is USD $81,
and the electricity is then provided at the extremely reasonable cost of USD $0.15/kWh.

Solar: An obvious choice to supply electricity to remote and isolated areas is solar photovoltaic
power. With the recent reduction in the cost of solar panels, solar electricity has become quite
affordable and accessible. Peak solar irradiated power is greater than 1kW/m2, and though cheap
solar panels have modest efficiency (~12%), it is still possible to harness considerable energy with
this solid state technology. Solar electricity has the clear advantages of not requiring fuel, and
simple maintenance. A basic direct current solar system can last over 20 years. An estimate of the
cost of solar photovoltaic power based upon typical efficiency, cost and lifespan shows the cost to
be USD $0.25/kWh for small installations, though a different measurement found the cost to be
USD $1.09/kWh. Of course, solar energy is only available during the day, and even poor weather
can render a system nearly useless. This problem can be avoided with energy storage, but this is
difficult and costly.

Wind: Though large scale deployment of wind turbines has advanced considerably in the last few
decades, wind power has not had a significant impact on rural and remote electrification, especially
in poverty stricken areas. The basic technology has existed for considerable time, as small scale
wind turbines are in common use to provide power to recreational marine vehicles and some high-
end off grid homes. The relative complexity, high-cost and inconsistent generation have thus far
restricted the application of wind power in rural electrification. A typical installation for a 10kW
wind turbine may cost as much as USD $55,000, which is simply too high for these economically
disadvantaged regions.

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Thermoelectric: Thermoelectric generation from a temperature difference is not typically

considered as a means of providing electricity, except in certain specialized applications such as
waste heat recovery and harsh environment wireless sensing. Current state of the art thermoelectric
generation is limited to small capacity and generally poor thermodynamic efficiency. It does have
certain undeniable advantages for the application in consideration here. Even the most remote and
undeveloped areas typically still have a heat source used for cooking and providing warmth for
survival. Whether this is a wood fire, kerosene stove or other source of heat, there is inevitably a
considerable amount of waste heat. This waste heat can be used to generate a small amount of
power with off-the-shelf thermoelectric modules. This may be sufficient to charge a mobile device
or lamp, but without considerable developments in thermoelectric technology, the scale is likely
to remain largely insufficient. In addition, usual materials used for thermoelectric modules such as
lead, tellurium and bismuth are toxic.

Usually at low voltage and low power, these systems are safe, and do not require massive capital
investment. These generation strategies, among others such as hand crank/human/animal driven
generation, are beginning to provide small, but important amounts of electricity in locations such
as Africa, southeast Asia and the Indian subcontinent. All of these methods provide enormous
economic benefits to the end-users, compared with the lack of access to electricity or cost of battery
power alone.

Micro-Grids

For larger scale power generation and distribution, the basic generation strategies, like those
mentioned in the above section, must be scaled up and synchronized. The infrastructure required
to do this is referred to as a micro-grid. Micro grids are typically designed to be capable of
providing continuous power supporting the same levels of demand as a full scale electrical grid.
Unlike off-grid generation, micro-grids can support factories and large appliances like
refrigerators. In order to provide these levels of service, micro-grids are much more complex and
costly than off grid generation. A typical system may cost in the range of USD $30M.

In order to provide consistent power, a micro-grid must have some level of redundancy, and not
rely entirely upon inconsistent generation sources like solar or wind. The basic architecture of a
micro-grid is as follows: Generation source(s) (and fuel), load balancing electronics, power
conditioning electronics and distribution network. The generation source often is a combination of
a renewable source and diesel or gas generator, possibly with a battery bank to better match the
load and capacity. The electronics required to autonomously operate micro-grids must be fast
responding as there is typically less averaging due to the smaller number of generation sources and
loads.

Micro-grids also have the benefit that as the centralized grid expands, it can be relatively simple
to merge the two grids, ultimately powering the micro-grid area completely from the main grid.
Though micro-grids are a much more complete solution than off-grid generation, they are
expensive, require specialized maintenance are simply not practical in many situations.

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Conclusions

In previous mass-electrification efforts, like South Africa, there have been broad and substantial
economic gains achieved almost immediately. The technologies discussed above have the potential
to create much of the same effect, reducing poverty in some of the most disadvantaged areas of
the world. As the cost of manufacturing and physical transportation for technologies like solar and
micro-hydro continues to decrease, deployment will increase. Already more and more electricity
generation methods are becoming competitive at the level that could be afforded by these relatively
poor areas. This may allow for greater wealth, and subsequently the ability to pay for more
complete electrification. These first steps, whether they be a few watts of local generation to power
lights to extend the day, or a micro-grid to run a sawmill and machine shop are absolutely essential
to unlocking the human potential in rural and remote, un-electrified areas.

4. Your client National Grid USA is a subsidiary of London UK-based multinational

electricity and gas utility company National Grid plc (LSE: NG, NYSE: NGG).
Headquartered in Waltham, Massachusetts, United States, the company operates over 9,000
miles (14,000 km) of electricity transmission and delivers electricity and natural gas to New
England areas of the Northeast states of Massachusetts, New Hampshire, New York, Rhode
Island and Vermont, serving over 3.3 million customers with electrical power and 3.4 million
customers with natural gas.

National Grid USA has hired you because the company is facing increasingly fierce
competition due to deregulation in their industry. Soon, the electricity carrier (wires)
business will be separate from the electricity generation (power plant) business. Any power
company generating electricity will soon be able to sell in their New England market. What
would you recommend the client National Grid USA to do?

Ans: Deregulation will help to liberate the energy market and will make it more competitive. The
consumers will benefit from deregulation. The power quality increases and energy price may go
down. The unbundling of generation and distribution will decrease the monopoly and system will
not operate in vertically integrated manner. More new companies called Independent Power
Producers will start to generate power. Private sectors and stakeholders will be encouraged to
invest more in power generation. Our company can purchase power from such producers. We
should make offer for transmission of power produced by IPPs. I will advise the company to
formulate standard PPA that will not beneficial to both companies and consumers.

The producers generating energy from renewable sources can be encouraged for grid integration
assuring to provide grid services and agreeing preferred tariffs. The ancillary services provided by
the distributed energy sources if any will be facilitated with incentives. The integration of DG to
the grid also helps in peak shaving. If DGs are integrated to the grid at optimal locations and with
proper operating characteristics, then the power quality and voltage profile of the grid power
system will improve. The losses in the grid will be reduced. The consumers (end users) who are
capable to self-generate power can be encouraged to interconnect to grid providing with net
metering system. The excess energy can be brought to the grid at agreed price. The customers will
be assured of technical assistances and protection system. Hence, through the integration various
independent power plants and renewable DGs, fossil fuel consumption for the power generation

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will be reduced. The carbon emission will be reduced. As a result, the penalty cost for emissions
will be reduced. Thus, company can achieve technical and economic benefit from this process and
remain competitive in the energy market.

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