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Global Market for Distributed Generation Technologies 2018

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  • 120 Pages
  • April 2018
  • Region: Global
  • Aruvian Research
  • ID: 4496077

Increased demands on global electrical power systems and incidences of electricity shortages, power quality problems, rolling blackouts, and electricity price spikes have caused many utility customers to seek other sources of high-quality, reliable electricity. Distributed Energy Resources (DER), small-scale power generation sources located close to where electricity is used (e.g., a home or business), provide an alternative to or an enhancement of the traditional electric power grid.

Distributed power resources, including on-site generation, local energy storage, combined heat and power systems, and load control devices, promise to revolutionize the way electric power is delivered to industrial, commercial, and residential customers worldwide. The traditional model of electric power delivery used economies of scale to produce low-cost electricity from central power plants, delivered to the customers over a large network of transmission and distribution lines.

The emerging model of power delivery will vary according to the particular market, but will likely evolve along one of two paths. In areas with established central-station grids, distributed resources will be incorporated into the distribution system to support reliability, power quality, and grid expansion. In developing and rural areas, distributed resources will form the core of the grid, allowing for flexible, incremental grid expansion with reduced environmental impacts and reasonable operating costs.

Before these models become reality, however, key participants in the potential markets, including government planners/regulators, utility decision-makers, and end-users, must be made aware of the benefits of these technologies and their impacts on electric power systems, economic development, and environmental quality.

This research brings a focus on Distributed Generation Technologies, looking at the various technologies involved in the process, economics of distributed generation, leading countries who are actively promoting distributed generation, issues and challenges, growth drivers, etc.

Table of Contents

A. Executive SummaryB. IntroductionC. What is Distributed Generation?
D. Distributed Generation Technologies
D.1 Reciprocating Engines
D.2 Gas Turbines
D.3 Microturbines
D.4 Fuel Cells
D.5 Photovoltaic Systems
D.6 Wind
D.7 Market Impact
D.7.1 Generating Equipment
D.7.2 Distribution Network
E. Economics of Distributed Generation
E.1 Distributed Generation versus Central Power
E.2 Economics of Photovoltaic Electricity
E.3 Flexibility Increases the Value of Distributed Generation
E.4 Grid Benefits of Distributed Generation
E.4.1 Combined Heat and Power (CHP)
E.4.2 Reliability, and Standby or Emergency Power
E.4.3 Reliability, Network Losses, Usage, and Investment
E.4.4 Impact on Network Losses, Usage, and Investment
E.4.5 Offgrid and Remote Consumers
E.4.6 Postponing Generation Investment
E.4.7 Electricity Market Benefits
E.4.8 Potential Environmental Benefits
F. Distributed Generation in Leading Countries
F.1 Japan
F.2 United States
F.3 Netherlands
F.4 UK
F.5 Conclusion
G. Challenges in Policies
G.1 Economic Efficiency
G.1.1 Grid Interconnection
G.1.2 Electricity Market Reform & Distributed Generation
G.1.3 Market Structure
G.1.4 Market Operation
G.1.5 Pricing
G.1.6 Pricing & Location
G.1.7 Connection Charges
G.1.8 Operating Charges
G.1.9 Congestion Pricing
G.1.10 Net Metering
G.2 Environmental Protection
G.2.1 Air Quality
G.2.2 GHG Emissions
G.3 Energy Security
G.3.1 Energy Diversification
G.3.2 Reliability of Electricity System
G.4 Conclusion
H. Applications of Distributed Generation
I. Future of Distributed Generation in Electricity Networks
I.1 Generation Technology Research and Development
I.2 Implications for Electricity Network Design
J. Appendix
J.1 Distributed Generation Technology and Demand Management Schemes
J.1.1 Demand Management Contracts
J.1.2 Distributed Generation
J.1.3 Distributed Generation vs. Demand Management Contracts
J.1.4 Conclusion
J.2 New Requirements for Distribution System
J.3 Distributed Generation Energy Services & Demand Shifting During Peak Hours
J.3.1 Introduction
J.3.2 Business Scenario
J.3.3 Business Analysis
J.4 Small-Scale Hydropower Plants and Distributed Generation
J.4.1 Introduction
J.4.2 Business Scenario
J.4.3 Business Analysis
J.5 Distributed Balancing Services
J.5.1 Introduction
J.5.2 Business Scenario
J.5.3 Business Analysis
J.6 Active Management of Distribution Networks
J.6.1 Introduction
J.6.2 Business Scenario
J.6.3 Business Analysis
J.7 Energy Consumption and Emissions from On-site CHP & Conventional Heat and Power Generation
J.7.1 Comparing Fuel Consumption and Emissions
J.8 Figures & Tables
K. Glossary of Terms
List of Figures
Figure 1: Generating Plants Costs Curves Concerning Power
Figure 2: Recuperated Microturbine System
Figure 3: The Construction of the Low Temperature Fuel Cell PEMFC
Figure 4: Model 38kV Radial Network with Distributed Generation
Figure 5: Comparison of PV Costs/Output to Household Electricity Rates in Selected OECD Countries
Figure 6: Security of Supply Example with DG
Figure 7: A Simple Distribution Network
Figure 8: Power Flows without DG
Figure 9: Power Flows & Usage with G Producing 400 kW
Figure 10: NOx Emissions from Distributed-Generation Technologies (kg/MWh)
Figure 11: CO2 Emissions from Distributed-Generation Technologies (in kg/MWh)
Figure 12: Comparison of Costs of Distributed Generation & Demand Management Contracts
Figure 13: Financial Comparison of Different DG Technologies
Figure 14: Networked Business Model for Local DG Production in Norway
Figure 15: Value Model for a DG-Supported Distributed Balancing Service
Figure 16: Supplier Revenues in the Balancing Services Business Model for DG
Figure 17: Value Exchanges between Market Parties in Active Management of Distribution Networks
Figure 18: Variation of DG Profitability with Wholesale Tariff
Figure 19: Variation of DG Profitability with Cost of Active Management
Figure 20: Variation of DG Profitability with Connection Charge
Figure 21: Distributed Generation Platform
Figure 22: Efficiency Comparison
Figure 23: OECD Capacity Additions by Fuel, 2001-2030
Figure 24: Savings in Transmission Investment from the Growth in Distributed Generation
Figure 25: Schematic of an Individual Fuel Cell
Figure 26: Comparison of Power Plant Efficiency
Figure 27: Diagram of a Generic Fuel Cell System
List of Tables
Table 1: Cost and Thermal Efficiencies of DG Technologies Inclusive of Grid Connection Costs and Without Combined Heat and Power Capability
Table 2: Emission Profiles of Distributed Generation Technologies
Table 3: Overview of Microturbines
Table 4: Indicative Costs of Various Distributed-Generation Technologies
Table 5: Distributed Generation Technology Costs Inclusive of CHP Infrastructure
Table 6: Cost of a One-hour Power Outage for Different US Businesses
Table 7: Economics of Gas CHP in Japan
Table 8: Cogeneration System Capacity (in MW) by Sector & Generator Type as of March 2017
Table 9: Comparison of Distributed-Generation Issues in Japan, the US, the Netherlands, and the UK
Table 10: Estimates of “Embedded Benefit” to Distributed Generators in the UK (in USD per MWh)
Table 11: New South Wales (Australia) Distribution Loss Factors
Table 12: Japanese NOx Limits on Cogeneration Systems
Table 13: Examples of NOx Limits in the US Applicable to Distributed Generation (in kg/MWh)
Table 14: DG Application Types & Characteristics
Table 15: Analyzing Data for Shifts in Peak Demands
Table 16: Changes in Network Tariff
Table 17: Expected Profitability, Accounting for Possible Changes in Network Tariffs
Table 18: Estimated Revenues for the Energy Supplier
Table 19: Base Data for Analysis of the Active Management Scenario
Table 20: Cash Flows for Various Actors

Countries Covered

  • Japan
  • United States
  • Netherlands
  • UK