Definitions for Distributed Generation

*There is no common, agreed upon, definition for distributed generation

* Diversities in the definitions from one country to another depend on the definition bases

such as(1): - Voltage level -Unit connection - Type of prime mover,e.g.renewable or co-generation (CHP( -Generation not being dispatched - Maximum power rating * The International Council on Large Electricity Systems (CIGRE WG 37 23) defines distributed generation as the units that is ]9[: -not centrally planned -today not centrally dispatched - usually connected to the distribution network -smaller than 50-100 MW

* IEEE defines DG as the generation of electricity by facilities that are sufficiently smaller than central generating plants so as to allow interconnection at nearly any point in a power system (1) *The International Energy Agency (IEA) defines distributed generation asunits producing power on a customers site or

within local distribution utilities, and supplying power directly to the local distribution network(1). * The California Public Utility Commission (CPUC) defines distributed generation as Generation, storage, or DSM devices, measures and/or technologies that are connected to or injected into the distribution level of the T&D grid and located at customers premises on either side of meter or at other points in distribution system, such as utility substation.()

DG Advantages
* Reduces dependence on major power plants. -No need to erect new big power generation Deferral of new capacity*Reduces dependence on long-distance national transmission grid releasing transmission lines capacities.

-Reduce cost of new transmission lines

-Reduce transmission congestion *Reduces transmission and distribution line losses * Reduces environmental impacts and greenhouse-gas emissions -Most DG are renewable or low emission generators * Reduces price volatility in energy markets * Enhances or preserve system reliability -Having back-up generation Deferral of new capacity (postpone upgrading the T&D *infrastructure * Accelerates retirement of old units * Increases energy security -Diversifying energy sources and reducing dependence on complex large systems * Improve system power quality

Disadvantages:
High power losses Service Reliability
Quality of Service Permits for construction of infrastructure Environmental impacts and emissions

DG Technology
DG is not a new concept. A number of utility consumers have been using DG for decades. Over the last 10 years, the DG market has been somewhat turbulent. In the late 1990s, new regulations/subsidies, such as net metering and renewable portfolio requirements, and the development of new DG technologies, have sparked .broader interests in distributed generation DG is power generation built near consumers. DG ,sources include small-scale environmentally-friendly technologies (e.g., photovoltaic and wind) installed on and designed primarily to serve a single end users site. But when reliability and power quality issues are

critical, DG most often includes more traditional fossil fuel fired reciprocating engines or gas .turbines The limited generation in the power sector has ,continually been exacerbated by load growth power demand, limitations in the ability to site new transmission lines, limitations in the ability to construct large scale generation due to increased environmental regulation, and lack of technology development to meet the new requirements. Manpower is required to achieve the development of a sustainable, secured, and economically-viable society and infrastructure. The growth in developed and developing countries has .created an energy divide in terms of wealth The major disparities of energy consumption per capita .are reflected in developing countries The universal electrification challenge to meet the worlds population growth in order to attain its current per capita electricity consumption will require massive increases in electricity .generation capacities In some cases, properly planned and operated DG can ,provide consumers, as well as society with a wide variety of benefits. These include economic savings because of government subsidies and improved environmental performance. Many utilities have installed DG on their systems and support federal funding of research to .develop new technologies

The interconnection of DG with the electric grid continues to pose genuine safety and reliability risks for the utility. DG could reduce the demand for traditional utility services. DG also poses an economic risk to incumbent utilities and their consumers unless appropriate rate structures or .cost recovery mechanisms are put into place Though a small scale power plant, DG is environmentally friendly due to its friendly technologies. These friendly technologies include: photovoltaics (PV), fuel cells, small wind turbines, or more conventional technologies such as: micro turbines and reciprocating engines that are fueled by renewable fuels, for instance, landfill gas. DG encompasses generation built near to a consumers load despite size or energy source. The latter definition could include .diesel-fired generators with significant emissions Other definitions of DG include some or all of the :following Any qualifying facilities under the Public Utility Regulatory Policies Act of 1978 ;)PURPA( Any generation interconnected with distribution ;facilities Commercial emergency and standby diesel generators installed, (i.e., hospitals and ;)hotels Residential standby generators sold at hardware ;stores

Generators installed by utility at a substation for voltage support or other reliability ;purposes Any on-site generation with less than X kW or MW of capacity. X ranges ;everywhere from 10 kW to 50 MW ;Generation facilities located at or near a load center Demand side management (DSM), energy efficiency, and other tools for reducing energy usage on the consumers side of the meter. The alternative to this definition would be to abandon the term distributed generation completely and use instead distributed resources (DR) or distributed energy .)resources (DER Centralized Generated In a Centralized Generated (CG) power system network, the transmission of power is carried over long distances from the centralized system before making the generated power available to consumers through distribution networks. At the generating end, power should be generated with different sources such as: hydropower, nuclear power, thermal power, and more. In regions where a Centralized Generated system is quite far from users, a need arises for such centralized systems to be decentralized. This act reduces transmission of power losses

CG Advantages and Disadvantages :

* Transmission High losses and transmission failure *Variable Operation and Maintenance Cost is Lower

* Fixed Operation and Maintenance *Cost of Capital is Lower Cost per unit

Cost is Higher.

*Reliability High with more output power

*Stability Less severe impact *Faults in the grid Severe impact * Extreme unforeseen events
* Emissions High with more output power * Power Quality reliability of power and Potentially lower quality

CG Technology

Central Generation or CG is the electric power production by central station power plants that provide bulk power. Most of them use large fossil-fired gas or coal boilers, or nuclear boilers to produce steam that drives turbine generators. In some cases, large hydro is also used. These enormous plants require costly management of large infrastructures. CG plants are susceptible to unreliability and instability under unforeseeable events, and are often .vulnerable to attacks Their limitations, in terms of efficiency and environmental impact as well as stability to sustain them, have given rise to renewable energy resource options for .researchers and policy-makers Both a centralized generated grid system and a distributed generated grid system have their merits and demerits. Thus, this white paper aims at enumerating both positive and negative aspects of the grids as well as addressing the challenges posed by the grids. This analysis helps

*Incentive Rates
The incentive levels for the three categories of self-generation technologies are provided below

Tiered Incentives and Incentive Decline SGIP incentives are paid for up to 3 MW of capacity with tiered incentive rates. For projects that are greater than 1 MW the incentives identified in Table 3.1 decline according to the following schedule:

SGIP incentive levels will decline annually with the first reduction starting on January 1, 2013.

The rate of annual incentive decline is provided in the following table:

Wind Turbine Technology

A Host Customer proposes to install an 100 kW wind turbine to

provide a portion of their facilities peak maximum) electric demand. There are no other incentives ( included. The incentive for this technology is 1.19 Watt (or $1,190/kW) and the Project cost is $100,000 ($1,000/kW). Multiplying the incentive by the capacity of the generation results in an incentive of $119,000. Assuming a 30% investment tax credit the incentive is limited to 30% of the project cost which is $3000,0. $150,00 of the incentive would be received upfront and the remaining $150,00 would be paid based on expected kWh generation over five years, calculated as nameplate capacity x capacity factor x hours per year x five years

Table of PBI Payment for an 100 kW Wind Turbine Operating at 25% Capacity Factor Year Capacity Capacity Hrs/Yr kWh Total PBI Total )kW( Factor kWh PBI 1 100 25% 8760 219000 219000 3000 3000 2 100 25% 8760 219000 438000 3000 6000 3 100 25% 8760 219000 657000 3000 9000 4 100 25% 8760 219000 876000 3000 12000 5 100 25% 8760 219000 1095000 3000 15000 ($15000performance payment)/1095000kWh = 1.37 cents/kWh PBI

Conclusion
Because the wind turbine operated as expected, it receives the full and final PBI payment at the end of five year. If the turbine were to operate better than expected, it would receive the same $15000 payment in a shorter time frame. Similarly if it generated fewer kWh .than predicted by year five, it would not receive the full payment Table A-4 Example of PBI Payment for an 800 kW Wind Turbine with a Declining Capacity Factor Year 1 2 3 4 5 Capacity )kW( 100 100 100 100 100 Capacity Factor 25% 25% 25% 20% 20% Hrs/Yr 8760 8760 8760 8760 8760 kWh 219000 219000 219000 175200 175200 Total kWh 219000 438000 657000 832200 1007400 PBI 3000 3000 3000 2400 2400 Total PBI 3000 6000 9000 11400 13800

In the example shown in Table A-4 above, the capacity factor begins to decline in year four. This results in fewer kWh generated, and a correspondingly lower PBI for that year. Because the wind turbine did not maintain an average 25% capacity factor during the five years of PBI eligibility, this project would not .receive the full SGIP incentive

References:
[1] Ackermann, T., Andersson, G., and S.oder, L., 2001.Distributed generation: a definition. Electric Power Systems Research 57, 195204. [2] Chambers,A., 2001. Distributed generation: anontechnical guide. PennWell,Tulsa, OK, p. 283. [3] CIRED, 1999. Dispersed generation, Preliminary report of CIRED working group WG04, June, 2, 1999, Nice. [4] Dondi, P., Bayoumi, D., Haederli, C., Julian, D., Suter, M., 2002. Network integration of distributed power generation. Journal of Power Sources 106, 1 9. [5] IEA, 1998. Projected costs of generating electricity in 20052010 (update 1998). [6] IEA, 2002. Distributed Generation in Liberalised Electricity Markets,Paris. [7] Jenkins, N.,Allan, R., Crossley, P., Kirschen, D., Strbac, G., 2000. Embedded Generation. IEE, London. [8] 2013 SGIP Handbook V.1(page 86-88) [9] Energy Research, http://europa.eu.int/comm/research/energy/nn/nn_rt/nn_rt_dg/article_1158_en .htm [10] Ackermann, T., Andersson, G., and S.oder, L., 2001.Distributed generation: a definition. Electric Power Systems Research 57, 195204