Module 3

Integration, Control and Operation of Distributed Generation:

Distributed Generation Technologies and its benefits
Distributed Generation Utilization Barriers
Distributed Generation integration to power grid.
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3.1 Distributed Generation Technologies

(https://www.briangwilliams.us/energy-efficiency/distributed-generation-technologies.html)

Distributed generation (DG) can be defined as a source of electric power connected to a

distribution network or a customer site, representing an innovative and efficient way to both
generate and deliver electricity. Technological improvements now allow power generation
systems to be built in smaller sizes with high efficiency, low cost, and minimal environmental
impact.

Distributed generation can serve as a supplement to electricity generated by huge power

plants and delivered through the electric grid. Located at a customer's site, DG can be used to
manage energy service needs or help meet increasingly rigorous requirements for power
quality (PQ) and reliability.

Distributed generation has the potential to provide site-specific reliability improvement, as

well as transmission and distribution (T&D) benefits including: shorter and less extensive
outages, lower reserve margin requirements, improved PQ, reduced lines losses, reactive
power control, mitigation of transmission and distribution congestion, and increased system
capacity with reduced T&D investment. Distributed generation also provides economic
benefits because DG technologies are modular and provide location flexibility and
redundancy as well as short lead times. Economic benefits can also be gained by using DG
technologies for peak-shaving purposes, for combined heat and power (CHP) (cogeneration),
and for standby power applications. In addition, many DG technologies provide
environmental benefits including reduced land requirements, lower or no environmental
emissions, and lower environmental compliance costs.

Distributed generation technologies can be divided into two different categories according to
availability: firm and intermittent power. The firm power technologies are those that enable
the power control of DG units that can be managed as a function of the load requirements.
Firm DG plants can be utilized as backup, working only in situations of grid unavailability, in
periods of high consumption (when the electricity is more expensive), working continuously,
or dispatched to meet the variable load in an optimal manner.

The intermittent power technologies do not allow the management of the produced energy by
themselves having a random generation character. Examples of this kind of technology are
wind power or solar power that only produces energy when the wind or the sun is available.
These technologies can be installed aggregated with energy storage that, by filtering the
energy generation fluctuation, enables the management of the delivered energy by the
combined system.

Distributed generation (DG) encompasses any small-scale electricity generation technology

that provides electric power at a site close to consumers. The size of DG could range from a
few kilowatts to hundreds of megawatts. DG units, which are scattered throughout the
distribution system, will be connected to a consumer's facility, the utility's distribution
system, the power transmission grid, or a combination of these options.

DG technology is often lumped with distributed storage, and their combination is referred to
as a distributed energy resource (DER) that represents a modular electric generation or
storage installed at consumer sites. In some cases, the DER will include controllable loads.
Dispersed generation' (DG), a subsection of DER, refers to smaller generating units that are
usually installed at consumer sites and isolated from a utility system. In most cases, dispersed
generation, which is seldom operated in parallel with a utility system, will be used as a
standby power source during power outages.

Technological advances in DG have resulted in small-scale generation that is cost-

competitive with large power plants. Compared with traditional large-scale generation
stations, DG is a less expensive, flexible and environmentally friendly power source. These
features enhance its position in market competition. Some of the specific attributes of DG for
utilization in restructure power systems are as follows.

Performance. The performance-based pricing mechanism in the restructured power systems

should encourage wide utilization of DG. The electric power market is like a comb that is
made up of many niches with different frameworks for energy needs. DG offers a very wide
range of options and hence will appeal to consumers in many of these niches. DG is reliable
and economic for use by commercial, residential, and industrial consumers. Moreover, DG
can operate as a standby power source, which is especially important to some critical and
sensitive loads possibly subject to curtailments or interruptions. Besides providing base load
generation, peak shaving, standby power supply, and cogeneration, DG is expected to have
an even greater function in a restructured electricity environment in providing spinning
reserve, reactive power supply and other ancillary services for system reliability, power
quality and congestion mitigation.

Cost of delivery. A vital consideration for the utilization of DG is that it will not incur
transmission and distribution costs. This will greatly reduce its marginal costs, enhance its
competition, and reduce severe congestion penalties. The other advantage in competition is
derived from DG’s flexibility. DG can be sized appropriately to match the specific needs of
consumers and can be quickly installed almost anywhere to capture the market value at key
locations. DG can operate flexibly to follow hourly fluctuations in energy prices.
Environmental concerns. Environmental concerns are the key driver for utilizing DG
technologies, particularly renewable energy technologies. The emission level of DG is
significantly lower than that of central generating stations. Though there is a debate over
what constitutes renewable, wind and solar technologies are generally acceptable entities in
this category. Large-scale hydropower plants are also considered renewable resources, but
not necessarily environmentally friendly because of their impact on fish and wildlife species
and the land that would be flooded. The most favorable renewable generation option at this
time is the wind farm. Geothermal and biomass applications can also be cost-effective
sources of energy but difficult to site and more difficult to implement. The construction of
new renewable generation resources is partly financed through premium green energy
markets.

Energy from Brownfield. DG makes it possible to tap energy resources that would
otherwise be wasted. There are many oil fields that are remote or produce low-quality gas
that is not economical to transport, so the gas is ignited in a flare to dispose of it. DG
technologies such as microturbines appear to be excellent means for recovering this kind of
energy. Biomass power is electricity produced from biomass fuels. Biomass consists of plant
materials and animal products. Biomass fuels include residues from the wood and paper
products industries, food production and processing, trees and grasses grown specifically to
be used as energy crops, and gaseous fuels produced from solid biomass, animal wastes, and
landfills. Some of these resources could produce more than 1000 kW of DG. Biomass
technologies convert renewable biomass fuels into electricity using modem boilers, gasifiers,
turbines, generators, fuel cells, and other methods.

Production cost. The success of DG in the market competition is due to its ability to provide
consumers with the lowest cost solution to meet their particular needs. The energy price
mostly depends on the production costs, and many factors can contribute to the overall
pricing of certain generation technologies. Generation efficiency is most important in this
category, because even a small increase in efficiency can yield a significant increase in
profitability. Other operating costs can be reduced by enhancing the reliability. High
reliability reduces the need for outages, and therefore the need for high-cost backup power; in
addition, high reliability can reduce the demand for O&M personnel and replacement parts.

Flexibility. DG provides significant flexibilities in power system operations, such as quick

ramp-up and shutdown, and enables investors to take advantage of short-term sales
opportunities. DG’s high efficiency, flexibility, and low-maintenance requirements would
keep its O&M costs down. Since DG systems are installed at distribution sites, neither
consumers nor energy providers would pay transmission and distribution tariffs. In
circumstances where DG faces challenges imposed by capital and production costs that are
higher than those of larger generating systems, these challenges can be balanced against
factors such as the opportunity for waste heat utilization, increased reliability at the site,
elimination of peak load constraints, reduction in transmission and distribution charges,
reduction in line losses, improved power quality, and more flexible response to market
changes.
Retail competition. Retail competition encourages more on-site generation by energy
consumers as DG becomes a means of managing the uncertainty in the energy supply market.
DG investors include retail customers, electric utilities, and various ESPs (energy service
providers) among which are IPPs (independent power producers). Retail customers would
evaluate the need for installing a DG system as an alternative to the following operations:

• Identifying load shedding and load shifting opportunities

• Quantifying outage costs to determine whether a standby power is needed
• Evaluating energy requirements to determine whether a DG alternative is more
economical.

Deployment. So far numerous DG units have been installed within distribution systems. The
DPCA (Distributed Power Coalition of America) has estimated that, within the next 20 years,
DG projects could capture 20% of new generating capacity. There are no such risks as
stranded cost in utilizing DG as most of the energy will be consumed by local consumers.
Modular plug-and-play interfaces and intelligent adaptive control technology, along with a
regulatory and institutional environment that recognizes the benefits of DG, would result in
ubiquitous deployment of DG. This deployment could represent some of the integrated
components of efficient, clean, and reliable energy systems for buildings and industrial
facilities.

Reliability. For the reliable and efficient operation of a distribution system with DG units,
the operation and control strategy must accommodate both the engineering needs to maintain
collective services as well as the economic push for independent and decentralized decision-
making.

Fig. 3.1. Distributed generation types and technologies.

There are different types of DGs from the constructional and technological points of view as
shown in Fig. 3.1. In general, DG can make use of energy derived from wind, solar,
geothermal, biopower, and fossil fuels. Typical DG technologies available include wind
turbines, photovoltaic panels, fuel cells, combustion turbines, gas turbines, and combustion
engines. Several of these technologies could offer clean, efficient, and cost-effective electric
energy.

Wind Energy
Wind is a clean renewable energy that is becoming increasingly popular with utility
customers and policy makers. Many wind power plants consisting of wind turbines are being
developed to meet the need for such a clean, sustainable power source. The working principle
of wind turbine is very simple, which implies the construction of a wind power plant would
be easier than that of a conventional fossil fuel power plant. Wind turbines can be coupled to
a synchronous or induction generator and operated at constant or variable speed. A variable
speed turbine has a simpler mechanical system and is usually the preferred solution for a new
installation. Wind energy systems use an inverter to convert a dc current into the standard ac
current.

Photovoltaic Systems
Photovoltaic (PV) systems make use of solar energy to produce electricity. Modular
photovoltaic cells can be installed at any place where the sun shines and have been
commercially demonstrated in extremely sensitive environments. However, because of the
intermittent nature of the PV generation, a dedicated battery needs to be integrated into the
PV system for a better performance. With the availability of advanced batteries, it will be
possible to store large amounts of energy during off-peak periods for use during peak hours.
The current high capital costs of PV make these systems a niche technology that can compete
more on the basis of environmental benefits than on economics. PV has been used
extensively in space power programs. As hardware costs decline, terrestrial applications of
PV would become more economical.

Fuel Cell
A fuel cell is an electrochemical device that converts chemical energy from a fuel directly
into electricity through a chemical reaction. It operates much like a battery but doesn't need
recharging as long as it is supplied with a continuous source of fuel and oxygen.

There are different types of fuel cells, but the most common one is the proton exchange
membrane (PEM) fuel cell. It consists of an anode, a cathode, and a polymer electrolyte
membrane. Hydrogen is typically used as the fuel for PEM fuel cells, although other fuels
like methanol or natural gas can also be used.

Here's a basic explanation of how a PEM fuel cell works:

1. Hydrogen is supplied to the anode, where it is split into protons and electrons through
a process called electrolysis. The protons move through the electrolyte membrane to
the cathode.
 2. The electrons cannot pass through the membrane and are forced to flow through an
external circuit, creating an electric current that can be used to power devices.

3. At the cathode, oxygen from the air combines with the protons that have passed
through the membrane and the electrons from the external circuit to produce water
and heat as byproducts.

Fuel cells are known for their high efficiency, producing electricity with minimal emissions
(especially when using hydrogen as the fuel), and their potential to be more environmentally
friendly compared to traditional combustion-based power generation. Fuel cells have a high
degree of reliability, are easily adaptable to new fuels, require little on-site attention, and can
be operated remotely.

They have various applications, including powering vehicles (like hydrogen fuel cell cars),
providing backup power for buildings, and even in portable electronics. Fuel cells are capable
of producing reliable electricity for residential, commercial, industrial, and transportation
applications. Fuel cells possess high-power densities and, owing to their compact nature, are
very easy to site in locations where real estate is scarce. A consumer can start with a small
fuel cell unit and stack additional capacity to meet varying capacity requirements. This
prefabricated nature makes it easy to quickly construct fuel cells. In addition, the short lead-
time for installation allows consumers to expand generation capacity in a timely manner. For
instance, when the load growth is rather abrupt in a service territory, the electric utility may
satisfy the demand by quickly establishing a power plant based on fuel cells. Investment in
this case is less risky since fuel cells can be relocated easily.

Fuel cells also present major environmental incentives. Because fuel cells use a non-
combustion process to produce electricity, they show no vibration and do not give rise to any
noise. It is perceived that, due to technological innovations, fuel cell emissions would become
negligible as compared to conventional means of producing electricity.

The chief obstacle to commonly accepted fuel cells is the cost, namely the equipment cost for
fuel cells is currently much higher than the lowest cost types of DG (usually diesel generator
sets). The present hope is for the automotive industry to adopt the fuel cell as its primary
energy source, which might bring the cost down to where it would be economically
competitive with other means of electricity generation. Currently, fuel cells have proved
economical in certain niche applications that are highly subsidized.

Combustion turbine
Combustion turbines (CTs) represent an established DG technology ranging from several
hundred kilowatts to hundreds of megawatts. CTs could burn natural gas, a variety of
petroleum fuels, or have a dual-fuel configuration. With the capacity of 1 to 30 MW, CTs
could produce high-quality heat that would generate steam for power generation, industrial
use, or district heating. CT emissions could be reduced to very low levels using dry
combustion techniques, water or steam injection, or exhaust treatment. Maintenance costs of
CTs per unit of output power are among the lowest for DG. Low-maintenance and high-
quality waste heat would make CTs an excellent choice for industrial or commercial CHP
(combined heat and power) applications with larger than 5 MW capacity.

Microturbines
Microturbines belong to the smallest category of combustion turbines. Microturbines were
originally designed for vehicular application such as aircrafts and buses but are now receiving
much attention in power industries. Microturbines are simple, compact, and robust, and they
are suitable for DG use. Recently, microturbine units have been used as a stationary source of
DG.

Microturbines offer advantages such as their compact size, modularity, lower emissions
compared to some traditional power sources, and the ability to operate on a variety of fuels.
However, challenges include initial costs, maintenance, and achieving higher efficiencies,
which are areas where ongoing research and advancements in technology aim to make
improvements.

Internal Combustion Engines

Combustion engines, especially reciprocating internal combustion (IC) engines, represent a
widespread technology which is used in automobiles, construction and mining equipment,
marine propulsion, and other types of power generation from small portable generator sets to
large engines, powering generators with several megawatts of capacity.

Spark ignition IC engines for power generation would mostly use natural gas as fuel but
could also run on propane or gasoline. Diesel cycle, compression ignition IC engines could
operate on diesel fuel, heavy oil or in a dual-fuel configuration that would burn natural gas
primarily with a small amount of diesel pilot fuel that could be switched to 100% diesel.
Current IC engines would offer low fuel cost, easy start-up, proven reliability when properly
maintained, good load-following characteristics, and heat recovery potential. IC engines with
heat recovery have become a popular form of DG. Emissions of IC engines are reduced
significantly by exhaust catalysts and by better design and control of the combustion process.

Comparison of DG Technologies
In general, economics of electric power systems will depend on capital costs, operating
efficiencies, fuel costs, as well as operation and maintenance costs. The DG technologies
discussed above are considered compatible with other merchant power generation options
and are utilized in today’s restructuring environment. Each technology has its own strengths
and weaknesses for competition and so would be aimed at a specific market segment.
Photovoltaic cells are less versatile than wind energy systems, which can be combined with
other forms of energy sources such as natural gas to form a hybrid system that is cost-
effective and, supply a continuous source of power. Environmentally-friendly renewable
energy technologies such as wind turbines and photovoltaic, and clean and efficient fossil-
fuel technologies such as gas turbines and fuel cells are new generating technologies driving
the utilization of DG. These renewable generators usually have a small size and can be easily
 connected to distribution grids.

A side-by-side comparison of these DG technologies, as of 2001, is given in Table 3.1. All

these DG systems are dispatchable momentarily except wind turbine and photovoltaic
systems, which depend on climatic conditions.

Table 3.1 Performance Characteristics of DG Technologies

Technology Fuel cell Wind Turbine Photovoltaic Combustion
System Turbine
Capacity Range 500 kW-25 MW 200 kW-2 MW 10 kW-0.8 MW 1 kW-0.5 MW
Efficiency 29-42% 40-57% 25% 6-19%
Capital Cost ($/kW) 450-1870 700-2800 600-2300 90-1900
O&M Costs ($/kW) 0.003 - 0.007 0.004 - 0.011 0.003 - 0.009 0.001- 0.005
Dispatchable Yes Yes Yes Yes

Benefits of DG Technologies
DG technologies promise a great many benefits, including cheaper power supply, higher
power quality, less capital investment, and improved system performance. These benefits will
be transmitted to a large segment of electric power system users among them consumers,
electric utilities, ESPs, transmission operation, and power marketers.

1. Functions as a Backup Network Capacity

The first advantage is that DG could be used as capacity support of the network. DGs can
reduce power transmission lines by supplying the load where consumers are located
because part of the capacity lines will be free. So, from the perspective of the network,
the consumer load is reduced.

2. Emergency Capacity Support

In an emergency, when part of the network is blacked out, using DG in the place of
consumption can reduce part of the network’s load. So, using these resources can reduce
the number of power outages.

3. Quick Start Up
After a blackout, the network needs to be black started. At this stage, DG can be used to
supply a certain part of the network to reduce the total load of the network. On the other
hand, these resources can also be used to start up the power plant.

4. Combined Electricity and Heat Production

After starting up the power plants and ensuring their stable performance, the grid is
connected, and the consumers are added to the network step by step. So, the network
startup will be easier after blackouts in the entire network by creating small islands
supplied by using DGs. Another significant advantage of DG is the use of heat generated
by these resources that can be achieved in some of them. In this case, according to Eq.
(3.1), the system efficiency increases.
𝑃𝑒
𝜂=𝑃 (3.1)
𝑖𝑛 −𝑃𝑡ℎ𝑒𝑟𝑚𝑎𝑙
where 𝑃𝑒 is the power produced, 𝑃𝑡ℎ𝑒𝑟𝑚𝑎𝑙 is the heat power, and 𝑃𝑖𝑛 is the input power.

5. Peak Shaving
A typical daily load curve is shown in Fig. 3.2. As can be seen in this figure, the total
amount of installed power capacity (dotted line) in the network should be such that the
load to be supplied at peak time has a suitable safety margin. In peak condition, electricity
generation involves higher costs; therefore, low-cost resources should be used to meet the
peak load. Power generation using DGs at peak times, in addition to being economically
effective, can reduce the capacity of the transmission lines and transformers. Reducing
the current in the main network equipment will reduce their temperature and consequently
will increase the life of the equipment.

Fig. 3.2. Typical daily load curve.

6. High Reliability
Whereas high reliability is required for power sensitive loads in a distribution network,
using two independent power supplies seems to be essential. With the installation of DG
sources in the vicinity of such sensitive loads, they can immediately start up to supply the
sensitive loads.

7. Spinning Reserve
As previously mentioned, DGs have an important role in supplying peak load. The power
should be quickly injected into the network to use these resources at peak times. To
achieve this purpose, the generator should be synchronized with the network to
immediately supply the load. It should be noted that the concept of spinning reserve is not
restricted only for rotating generators. For example, fuel cell systems at any moment of
 the day are capable of producing power to quickly inject the required power into the
network.

8. Nonspinning Reserve
DG sources can be used in emergency conditions to supply the loads due to the quick start
up. In this case, unlike the spinning reserve, the generator is turned off and is not
connected to the network. The spinning reserve is usually not used to provide peak load.

9. Load Balance
Because, in distribution networks, the phases are unbalanced, by using single-phase DG
sources connected to the distribution network, the phases can be balanced. This is done by
adjusting the amount of injected current into the network.

10. Voltage and Reactive Power Control

The main purpose of the use of DG is active power generation. But in some of these
resources, there is also the possibility of reactive power generation. For example, in wind
power plants, which are connected to the network via induction generators, the production
of reactive power is impossible. But in fuel cells, which are connected to the grid via
inverters, simultaneously controlling active and reactive powers is possible. Therefore,
the reactive power and voltage profile can be controlled to reduce network losses.

11. Delaying Investment in the Transmission System

The rated capacity of the transformers and transmission lines is determined according to
the load forecasting system and planning studies. With load growth, the construction of
the new lines and transformers are needed. If the load is supplied by DG, the construction
of the lines and transformers will be delayed.

12. Fast Installation and Operation

In areas where the growth rate of the load is high, the installation of thermal power plants
that need a lot of time is not practical. The use of DG sources that will be constructed in a
few months is the perfect solution for this problem.

13. Less Environmental Pollution Than Centralized Production

In large power plants, all kinds of greenhouse gases are produced. But in DG systems,
even those that consume fuel, polluting emissions are very low. This advantage makes it
easy to use DG sources in residential areas

Distribution System Utilization Barriers

DG sources in addition to all the abovementioned advantages create several problems in the
network. Some of the most important ones are mentioned in the following sections.

DG sources in addition to all the above-mentioned advantages create several problems in the
network. Some of the most important ones are mentioned in the following sections.
1. Difficult to Control
The first issue is the difficulty of controlling DG sources, especially in islanding mode,
because in this case DG sources in addition to active power generation also have the task of
controlling the frequency and voltage. To address this issue, the use of quick and advanced
controllers will be necessary.

2. Disturbing Protective Equipment Settings

Because the distribution network protection settings are made before connecting DG, these
resources affect the relay settings. In this case the amount and direction of the current are
changed. So all relays, especially the overcurrent relays, need to be adjusted.

3. Increasing the Short-Circuit Current

In short-circuit condition, after the connection of DG resources to the network, in addition to
the upstream injection of the short-circuit current, DG also contributes to the error. So,
usually a short-circuit current is increased. This is clear in Fig. 3.3.

Fig. 3.3 Short-circuit current increase in the presence of DG.

4. Difficult to Synchronize with the Network

As stated, the DGs can have the ability to supply load independently. For example, diesel
generators without a network connection can deliver three-phase power to the consumer. If
the generator needs to be connected to the network, automatic synchronization must be done.
Otherwise, it is possible that in connection time, the equipment could be damaged.

5. Choosing a Location for DG Installation

Choosing a suitable location for the installation of the DG sources can increase both the losses
and overvoltage in the system. So, the location of the DG installation is essential.

6. Difficult Operation in Urban Areas

The use of some DG technologies in urban areas is not justified because of the amount of
space that they occupy. For example, the large blades of wind turbines in the megawatt range
need a lot of space, which limits their use in urban areas. Solar cells have no economic
justification because they occupy a lot of space in metropolitan areas where land prices are
high. However, solar cells can be installed on the roofs of parking garages and buildings.

7. Increased Cost of Dispatching

The SCADA system should be implemented at the distribution level to provide the remote
control of DGs, which ultimately increases the cost of the network.
DG INTEGRATION TO POWER GRID

As a large number of DG with diverse characteristics have been installed in the distribution system,
most engineering and operation concerns are focused on the development of new control approaches
and tools, which include new monitoring schemes, new reliability and security analysis, and new
market mechanisms for DG to participate in competition. The integration of DG would cause system
reliability and stability problems; in addition, it would impose new challenges on the planning of
transmission and distribution systems. Most of these challenges are of a technical nature, and in-depth
studies will help us understand the impact of physical behaviors of DG on the power system
performance.

Integration

The alternatives for connecting DG systems to local distribution systems are shown in Figure 3.4.
Alternatives a, b, and c are mostly used by consumers. However, alternatives a and b with double
power sources provide higher reliability, while alternative a can directly sell the excess energy to the
market. In addition, alternative c is used by consumers who have difficulties in making direct
connections to power grids. Alternative d is mostly used by utilities and ESPs for the mere purpose of
supplying energy to the market by way of advanced DG technologies.

Figure 3.4. Interconnection Fashions

Generally, connection charges are comprised of an amortization of DG assets, which is payable while
the assets are in service. A termination charge is payable if the connection is terminated prior to the
end of the DG’s life.

DG units are rarely directly connected to transmission grids. This is because, compared with
traditional central generation, DG has limitations for bulk power production. Though additional
revenues are possible by increasing the size of DG units, economies of scale show that the marginal
improvement in efficiency would become insignificant once the size reaches certain limits, e.g., 50
MW. Other practical concerns might prevent the manufacturing of incredibly large thermal generating
units as efficiency, fuel cost, and availability would be the decisive factors.
Coal power generating units are among the most competitive and large generators whose efficiency
may be lower than many DG units. However, due to the abundance of cheap coal, their cost of bulk
power production would be much lower. Since existing thermal units represent sunk costs and the
stakeholders will try to make the best of their investments, thermal generators will remain a
significant fixture in the power industry for the foreseeable future. To win an economic showdown,
DG units would need to be more economical than the central generating station and its associated
T&D systems. In fact, the reason DG options are so attractive is not only because of their high
efficiency but also because they avoid T&D costs. For DG units, proximity to consumers is as
important as efficiency since T&D components bear a significant capital and continuing O&M costs.

Concerns for Utilizing DG in Distribution Systems

In general, electric utilities have the following three basic concerns about the integration of DG to the
power grid:

• Safety. DG units could inadvertently energize part of the distribution or transmission system
when that part of the system is not supposed to be energized. This could endanger utility
personnel and the general public, and damage utility or other customer equipment.
• Power quality. DG units could cause voltage flickers, harmonics, or other power quality
problems to nearby customers.
• Stability. Multiple DG units operating in parallel could cause stability problems in adjacent
power systems.

These concerns manifest themselves in numerous technical requirements such as the need for utility-
grade breakers, dedicated isolation transformers, and feeder relay coordination.

Distribution systems are designed fundamentally differently than transmission systems. While
transmission systems normally accommodate multiple energy sources, the distribution system expects
only one source in a radial configuration. DG units can bring new challenges to the operation of
distribution system in following four key areas:

• Load flow. Distribution system equipment is designed to accommodate the designated loads
plus perceived contingencies to maintain supplies under abnormal conditions and hence meet
the security requirements. Inappropriately sized DG units connected to the distribution
network can sufficiently alter power flows to either exceed network capabilities or adversely
affect distribution network losses.
• Voltage control. A key element of the design of radial distribution networks is the use of
tapered circuits where the size and capacity of the circuit tapers off along its longitude; this
arrangement will maximize the use of allowable voltage variations within statutory
regulations while minimizing the cost. Generation connected to tapered circuits tends to
increase voltages, potentially above statutory limits, particularly when connected to long rural
circuits.
• Network security. Strategies for connecting DG units must ensure the security of the overall
distribution system, although these strategies could presumably change if the system is
managed differently. Distribution system design standards, which aim at maintaining the
security of the system at an acceptable level, are taken as the benchmark for the security
assessment of new DG connections.
• Fault levels. Distribution systems are traditionally designed to have a low number of faults
consistent with switchgear ratings and operational limitations. This feature enables large and
fluctuating loads to be connected economically for minimizing losses, while minimizing the
effect on other consumers. Due to a small margin between operation and rating of distribution
equipment, integration of DG into distribution grids is likely to increase short-circuit currents
above plant capabilities. Induction motors, which form part of the distribution load, contribute
to short-circuit current and erode this margin.