DISTRIBUTED GENERATION: DEFINITION, BENEFITS AND ISSUES

DISTRIBUTED GENERATION: DEFINITION, BENEFITS AND ISSUES

Revised version – 29 September 2003 | G. Pepermans, J. Driesen, D. Haeseldonckx, R. Belmans and W. D'haeseleer
This paper explores the renewed interest in small-scale electricity generation, commonly referred to as distributed generation. It begins by surveying existing small-scale generation technologies and then discusses the major benefits and issues associated with distributed generation. The authors evaluate different technologies in terms of their contributions to listed benefits and issues. The paper also attempts to define distributed generation more precisely, noting that there is no consensus on a precise definition due to the diverse technologies and applications involved. The benefits of distributed generation include flexibility, reliability, power quality, cost savings, and environmental protection. Flexibility is highlighted as a key advantage, allowing for more responsive and efficient electricity supply. Reliability and power quality are also important, with distributed generation helping to ensure stable and high-quality electricity supply. Cost savings are significant, particularly in transmission and distribution costs, while environmental concerns drive the demand for cleaner energy sources. However, distributed generation also raises several policy issues. High financial costs, reduced choice of primary fuels, economic efficiency, environmental protection, and energy security are among the challenges. The paper discusses how these issues can impact the integration of distributed generation into the electricity system. Finally, the paper proposes a definition of distributed generation as "an electric power generation source connected directly to the distribution network or on the customer side of the meter." This definition is broad and flexible, allowing for further narrowing based on specific research questions or criteria such as dispatchability and generation capacity.This paper explores the renewed interest in small-scale electricity generation, commonly referred to as distributed generation. It begins by surveying existing small-scale generation technologies and then discusses the major benefits and issues associated with distributed generation. The authors evaluate different technologies in terms of their contributions to listed benefits and issues. The paper also attempts to define distributed generation more precisely, noting that there is no consensus on a precise definition due to the diverse technologies and applications involved. The benefits of distributed generation include flexibility, reliability, power quality, cost savings, and environmental protection. Flexibility is highlighted as a key advantage, allowing for more responsive and efficient electricity supply. Reliability and power quality are also important, with distributed generation helping to ensure stable and high-quality electricity supply. Cost savings are significant, particularly in transmission and distribution costs, while environmental concerns drive the demand for cleaner energy sources. However, distributed generation also raises several policy issues. High financial costs, reduced choice of primary fuels, economic efficiency, environmental protection, and energy security are among the challenges. The paper discusses how these issues can impact the integration of distributed generation into the electricity system. Finally, the paper proposes a definition of distributed generation as "an electric power generation source connected directly to the distribution network or on the customer side of the meter." This definition is broad and flexible, allowing for further narrowing based on specific research questions or criteria such as dispatchability and generation capacity.
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