4 - Integration of small and micro combined heat and power (CHP) systems into distributed energy systems

Abstract

During the last decades electrical systems have undergone a transformation, which is still underway and is supposed to lead from the ‘vertical integration’ model to a fully open electricity market. This process presently overlaps with the development of distributed energy resources (DER) that brings under a single concept electricity generation, storage of energy and demand response, all at small scale. DER development raises a number of issues for the different stakeholders. However, it is obviously an opportunity for new, emerging market players, but it brings also new perspectives for incumbents. Participation of DER in the different energy markets requires the setting up of upgraded structures for aggregating small energy sources. This chapter summarizes why dispersed generation is innovating in the electrical power system context. It shows how distributed generation can represent value for the system and it evaluates the significant economic advantage of being interconnected. It concludes with recommendations to wire companies and to regulatory bodies.