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WHY DISTRIBUTED GENERATION SYSTEM?

The five major factors that contribute to the renewed interest in distributed generation (DG) system:
  1. Electricity market liberalization 
  2. Developments in DG technologies 
  3. Increased customer demand for highly reliable electricity.
  4. Environmental concerns.
  5. Constraints on the construction of new transmission lines.

ADVANTAGES OF DISTRIBUTED GENERATION SYSTEMS:

UTILITY PERSPECTIVE:
  • On-site power supply avoids transmission and distribution losses.
  • Increasing the efficiency compared with central power generation.
  • Diversification of power sources.
  • A possible solution to constraints on new transmission lines.
  • Provides cleaner power by using renewable sources such as wind and sun.
  • Better quality of power.
  • Hedge against uncertain load growth and high market.
CUSTOMER PERSPECTIVE:
  • Improving energy efficiency and reducing greenhouse- gas emission through combined heat and power (CHP) plants and renewable sources.
  • Improved reliability by having back-up generation.
  • Receiving compensation from the utility for making their generation capacity available to the power system in areas with power shortages.
COMMERCIAL POWER PRODUCER:
  • distributed generation systems with their comparatively small size and short lead times as well as their different technologies, allow players in electricity market to respond in a flexible way to changing market conditions.
  • To sell ancillary services (such as reactive power and stand by capacity etc.)

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