Distributed Generation Projects Research Articles

The tidal energy potential of the Manukau Harbour, New Zealand

A renewable source of electricity generated near the demand in Auckland might help defer investment in grid infrastructure, avoid grid transmission losses and help achieve the target for renewable energy mix in New Zealand. The tidal energy at both ends of the entrance channel to the Manukau Harbour is calculated based on navigation chart current speed data. Calculation is done using the kinetic energy flux method, and a farm method calculation is used for comparison purposes.The peak current speeds are modest: 1.35 and 1.80m/s. These give estimated extracted electricity results of 7.2 and 7.9GWh/year for flux method and 13.3 and 11.2 GWh/year for farm method. This electricity could supply about 900–1400 New Zealand homes and is similar to the generation output of a small wind farm. Factors affecting feasibility for a future tidal energy project in the Manukau Harbour include New Zealand electricity demand changes, technology maturity, and environmental effects – especially on rare dolphins. The study concludes that the resource is sufficient to support a small-scale distributed generation project after technology costs reduce. A strong case is made for investment in another more detailed study in 2017.

Independent distributed generation planning to profit both utility and DG investors

Most current regulations allow small-scale electric generation facilities to participate in distributed generation (DG) with few requirements on power-purchase agreements. However, in this paper, it is shown that distribution companies can alternatively encourage DG investors into DG contracts that can significantly benefit the utility network. In this regard, a new algorithm is proposed to determine the best sites, sizes, and optimal payment incentives under such special contracts for committed-type DG projects to offset distribution network investment costs. On one hand, the aim is to allocate DGs such that the present value profit gained by the distribution company is maximized via procuring power from DGs and the market at a minimum expense. On the other hand, each DG unit's individual profit is taken into account to assure that private DG investment remains economical. The algorithm is verified in various cases and the impacts of different factors are accordingly studied.

Power for Development: A Review of Distributed Generation Projects in the Developing World

The paradigm for providing affordable electricity for the world's poor—power for development—has begun to change. Historically, centralized governments built large consolidated power plants and distribution and transmission lines with the ultimate goal of providing electricity to all of their citizens. It has become increasingly common in recent decades, however, for donors, nongovernmental organizations (NGOs), firms, and communities to collaborate with governments to develop small-scale localized energy systems known as distributed generation (DG) either as complements or alternatives to centralized operations. DG programs have been implemented around the world but with a mixed record of success. Based on an analysis of the existing case study literature, we examine DG program goals and outcomes, identifying major factors that affect these outcomes, including appropriately chosen technology, adequate financing and payment arrangements, ongoing end users' involvement, and supportive national policies. We highlight the importance of institutions for collaborative governance in the pursuit of these factors.

The Benefits and Complexities of Distributed Generation: Two Energy Trajectories in Laos and Thailand

This article aims to offer insight into the benefits and complexities of distributed generation and provide a critique of mainstream theories about energy transitions. It does so through the analysis of two village-based case studies, in Laos and Thailand, respectively. The term ‘energy trajectory’ is introduced to analyse how changing energy systems in the two villages are related to changing energy practices and socio-economic development. A combination of data on energy use, interviews and observation in the villages provides a deep historical perspective of these changes over time. In both cases, decentralised micro-hydropower systems were built, followed later by connection to the national electricity grid. These changes provide an opportunity for close-up investigation of local energy transitions over a relatively short period of time. In addition to some similarities, there are also major differences between the two energy trajectories. Besides the different economic and political contexts of Laos and Thailand, there is more involvement of development actors in the case of Laos than in the case from Thailand. However, the latter case shows more success in creating ownership for the people in the village. Both cases highlight the need to look at distributed generation projects as embedded in the wider development context and the political economy of electricity generation. The findings of this article challenge common conceptions and theorisation of energy transitions, related to contingency and the complexity of scalar interactions of the energy trajectories analysed. Finally, the article argues for better integration of distributed generation in policy and planning.

Sustainable model for financial viability of decentralized biomass gasifier based power projects

This paper made a modest attempt for designing a sustainable model for financial viability of biomass gasifier power projects for enhancing electricity access in India and other developing countries. For long term sustainability of distributed generation projects in remote rural areas, viability from both project implementing agency (PIA) and the end-users need to be ensured. The minimum required prices of electricity from both PIA and end-user perspective have been estimated. While for PIA the cost recovery is the key for viability, the affordability to pay the electricity cost is crucial for the end users. Analysis carried out in this paper on the basis of data obtained from operational projects implemented in India reveal that it is essential to operate the system at a higher capacity utilization factor. While this can be achieved though creating convergence with locally relevant economic activity, it is also observed that micro-enterprises cannot pay beyond a certain price of electricity to keep it sustainable. This paper sets forth a case for developing a regulatory mechanism to extend the tariff fixation for the projects and providing cross-subsidies to ensure long term sustainability of off-grid project.

The role of taxation policy and incentives in wind-based distributed generation projects viability: Ontario case study

Taxation policy and incentives play a vital role in wind-based distributed generation projects viability. In this paper, a thorough techno-economical evaluation of wind-based distributed generation projects is conducted to investigate the effect of taxes and incentives in the economic viability of investments in this sector. This paper considers the effects of Provincial income taxes, capital cost allowance (CCA), property taxes, and wind power production Federal incentives. The case study is conducted for different wind turbines and wind speed scenarios. Given turbine and wind speed data, the Capacity Factor (CF) of each turbine and wind speed scenario was calculated. Net Present Value (NPV) and Internal Rate of Return (IRR) for different scenarios were then used to assess the project's viability considering Ontario Standard Offer Program (SOP) for wind power.

Planning and operating non-firm distributed generation

The penetration of distributed generation (DG) is increasing on distribution networks across the world. Non-firm access to the network is now being proposed as a cost effective way to facilitate DG. However, concerns remain about the operational details of non-firm access and also with regard to the financing of DG projects, which, by their nature, are not guaranteed permission to export power at all times. Here, the pertinent planning and operational issues that arise with non-firm access are analysed. The index of coincidence is used to assess the probability of constraint breaches, through analysis of historical generation and load profiles. Further to this, a novel method is proposed, which minimises the cost to the generators of non-firm access through coordinated operation.

Fuel cells: A utilities perspective

Southern California Edison (SCE) is actively assessing how to maximize the benefits from fuel cell power systems and other distributed generation (DG) technologies deployed along existing distribution level circuits. From a utility perspective, the viability of DG fuel cell systems increase as the technology matures and more “value-added” features are incorporated. As the number of DG projects grows in SCE's service territory and optimism increases about the potential uses, so does the need to better understand the impact wide-scale deployment may have on the performance of California's energy system. Understanding how DG technologies affect distribution level circuits and devising effective deployment strategies is essential for the technology to gain widespread acceptance and become an integral part of SCE's Transmission and Distribution (T&D) system planning. Simulation results are presented in this paper that indicate fuel cell systems combined with electronically switched power inverters capable or providing reactive power (a.k.a. VAR) support are more advantageous than fuel cell systems without such inverter features. In fact, for the SCE circuit analyzed, a strategically placed 2.5 MW fuel cell system with VAR support capabilities has a greater affect on circuit performance than a 3 MW fuel cell system without VAR support. Even though the 2.5 MW fuel cell system with VAR support inverter possesses 16.7% less power rating than the 3 MW system without VAR support, it was more effective in reducing circuit current flows, reducing distribution line losses, and maintaining circuit voltage within ±5% of 12.47 kilovolts (kV).

Distributed Generation: Southern California Edison’s Interest and Perspective

Commercial outlook of fuel cells and other Distributed Generation (DG) technologies remains uncertain in the foreseeable future. As the number of DG projects grows in Southern California Edison's (SCE's) service territory and optimism increases about the potential uses, so do concerns about the impact wide-scale deployment may have on the performance of California's energy system. By staying abreast of developing DG technologies, we can help DG become an integral part of Transmission and Distribution (T&D) system planning.

04/00798 Standby service to distributed generation projects: the wrong tool for subsidies: Parmesano, H. S. The Electricity Journal, 2003, 16, (8), 85–92

04/00798 Standby service to distributed generation projects: the wrong tool for subsidies: Parmesano, H. S. The Electricity Journal, 2003, 16, (8), 85–92

RE policy in India: The need for local sensitivity

While at a local level renewable energy success stories abound in India, at the national level, the RE gains seem almost unnoticeable. That is because most of these success stories are due to adoption of renewable energy products - mainly solar systems - by individual households. When it comes to exploiting renewable potential for setting up distributed generation projects that can cater to masses, the country has not scored well. Refocus correspondent, Sunil Puri, India provides his perspective on the current RE situation in India.

Blackout of Project Finance?

Will the recent Blackout be the Three Mile Island of the project finance of deregulated electrical assets or the genesis of new opportunities? The answer to this question is complex. Despite the clearly identified need for enhanced transmission facilities, growth of the transmission structured and project finance market will depend largely on satisfactory reform of the regulatory environment. Despite a possible perceived need for supply redundancy, enhanced use of project finance for generation also will depend on regulatory reform. Distributed generation (DG) could receive an impetus from the Blackout, but targeted public policy may be needed to support DG project finance. Unless the Blackout is taken as a signal to nationally modify the “business as usual” profile of the U.S. power industry, which has resulted at best in benign neglect and a confusingly hybrid regulatory system, it will do little or nothing to affect the prospects for merchant generation, may not lead to the highly accelerated use of project and structured finance to facilitate transmission and distribution, and could presage a period of delay, both before and after regulatory issues are worked out fully.

Standby Service to Distributed Generation Projects: The Wrong Tool for Subsidies

Providing subsidized standby service to DG is a mistake for two reasons. It is a shotgun approach to encouraging beneficial projects. Further, DG designers and operators will not plan and run their generating facilities efficiently if they do not face cost-based charges for standby service.

The Status of Power Quality and/or Distributed Generation Projects in Korea: Establishment of Grid Interconnection Standards

National and/or utility grid interconnection standards for interconnecting nonutility distributed generation systems with local utility grid will be essential to their beneficial utilization. In this paper, some activities with respect to establishment of grid interconnection standards of distributed generation in Korea are introduce.

Financing Distributed Generation

This paper introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financing structures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This paper discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy Savings Performance Contract; utility programs; chauffage (end-use purchase); and grants. The paper also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors (''business angels''); bank and debt financing; and the stock market.

Financing Distributed Generation

ABSTRACT This article introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financing structures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This article discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy Savings Performance Contract; utility programs; chauffage (end-use purchase); and grants. The article also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors (“bu...

Barriers to Distributed Power

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.

Distributed Electricity Generation in Competitive Energy Markets: A Case Study in Australia

The electricity industry in Australia has recently undergone significant restructuring. Generation, transmission and distribution have been unbundled and placed under private or public corporate ownership. Industry restructuring, together with concerns about the environment, have resulted in a noticeable increase in distributed electricity generation, especially small-scale generation. This development has important ramifications for the electricity industry and the wider economy. This paper provides an empirical analysis of the recent growth in distributed electricity generation in Australia, and analyzes the factors driving this resurgence of interest. The paper also attempts to identify the underlying factors contributing to the development of distributed generation. Past and current distributed generation projects are classified according to which technical or institutional factor was dominant in the realization of each project. This enables us to identify changes over time in the rationale for distributed generation. A comparative analysis of the developments in the different Australian states provides additional insights into the roles played by factors such as geography, the availability of low-cost industrial by-products for fuel, and the introduction of competitive markets.