Distributed generation (DG) refers to small-scale power generation technologies that are installed near the end-users they supply. Rather than supplying bulk power through substations and longer distance transmission and distribution lines, it supplies targeted loads at a local level.
Types
There are various technologies that fall under the umbrella of distributed generation. Some of the most common include:
Solar Photovoltaic Systems
One of the fastest Distributed Generation DG technologies is solar photovoltaic (PV) systems. A solar PV system uses solar panels made of photovoltaic cells to convert sunlight directly into electricity. Residential and commercial roof installations are increasingly common as solar panel prices drop. Larger ground-mounted solar farms also act as distributed generators.
Wind Turbines
Small wind turbines mounted on rooftops or on towers near buildings harvest wind energy to generate electricity on-site. While the upfront costs are higher than solar PV, wind power provides a renewable energy source day and night. Developing micro-wind technology has improved reliability and performance of small-scale wind turbines.
Fuel Cells
A fuel cell uses an electrochemical reaction involving hydrogen to produce electricity. While fuel cells have traditionally been large-scale, technological progress is enabling distributed fuel cell systems that can run on natural gas or hydrogen. They provide both heat and power and have high efficiency levels.
Natural Gas Generators
Natural gas generators, often fueled by pipelines, produce power near the point of consumption. They can serve as reliable backup power during interruptions or run in combined heat and power configurations. Gas generators release fewer emissions than diesel counterparts.
Benefits
Distributed generation brings several benefits compared to centralized bulk power generation and long-distance transmission and distribution networks.
Increased Resiliency and Reliability
By generating power close to end-users, distributed generation adds resiliency to the electricity system in the event of transmission line failures or outages. Microgrids powered by DG sources can "island" from the main grid during emergencies.
Deferral of T&D Infrastructure Upgrades
Distributing generation to load pockets reduces congestion on transmission and distribution lines, allowing utility providers to delay expensive upgrades. This saves consumers money in the long run.
Improved Power Quality
It installed near the point of use enhances power quality by helping to regulate voltage variations and stabilizing frequency fluctuations. This benefits sensitive commercial and industrial loads.
Cost Savings Through Energy Efficiency
Combined heat and power distributed generation recovers and utilizes waste heat from power generation. This boosts overall efficiencies above 90%, lowering energy costs. Thermal energy storage furthers savings by allowing heat and cold to be shifted between buildings.
Promotes Renewable Energy Adoption
It lowers barriers to renewable technologies as solar panels, micro-wind turbines and fuel cells can harness locally available resources on-site and offset fossil fuel use. This accelerates the energy transition.
Challenges
While it promises many rewards, it also faces obstacles that need to be addressed for widespread commercialization.
Interconnection Complexities
Safely connecting distributed generation assets to the grid while maintaining power quality poses technical challenges. Standard interconnection processes and two-way communication protocols still require streamlining.
High Initial Installation Costs
The upfront capital costs of DG technologies like fuel cells or combined heat and power systems are higher than traditional generation on a per-kilowatt basis. Incentives help but installation remains a barrier.
Location Dependency
The performance of renewable DG relies on the availability of local resources that may fluctuate. This affects dispatchability compared to fossil fuel plants. Energy storage assists with this issue.
Utility Business Model Disruption
The shift to distributed generation disrupts the centralized utility model of bulk power provision. However, DG integration provides utilities new opportunities in grid services, project development and energy management if business practices adapt.
Overcoming these hurdles through policy support, technology progress, business model innovation and utility modernization will accelerate its role in reshaping the energy landscape. Its benefits of increased efficiency, reliability and renewable integration make it a rising trend with long term potential.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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