Barriers to Distributed Power

Abstract

This article focuses on cases where barriers to distributed powerare present. It offers the following findings about current restrictions tointerconnection of DG power generation projects.• A variety of technical, business practice, and regulatory barriersdiscourage interconnection in the US domestic market.• These barriers sometimes prevent distributed generationprojects from being developed.• The barriers exist for all distributed-generation technologies andin all regions of the country.• Lengthy approval processes, project-specific equipment require-ments, or high standard fees are particularly severe for smallerdistributed generation projects.• Many barriers in today’s marketplace occur because utilitieshave not previously dealt with small-project or customer-genera-tor interconnection requests.• There is no national consensus on technical standards for con-necting equipment, necessary insurance, reasonable charges foractivities related to connection, or agreement on appropriatecharges or payments for distributed generation,• Utilities often have the flexibility to remove or lessen barriers.
 • Distributed generation project proponents faced with technicalrequirements, fees, or other burdensome barriers are often ableto get those barriers removed or lessened by protesting to theutility, to the utility’s regulatory agency, or to other public agen-cies. However, this usually requires considerable time, effort,and resources.• Official judicial or regulatory appeals were often seen as toocostly for relatively small-scale distributed generation projects.• Distributed generation project proponents frequently felt thatexisting rules did not give them appropriate credit for the contri-butions they make to meeting power demand, reducing trans-mission losses, or improving environmental quality.