Distributed generation
By contrast, DER systems are decentralized, modular, and more flexible technologies that are located close to the load they serve, albeit having capacities of only 10 megawatts (MW) or less.
Distributed generation and storage enables the collection of energy from many sources and may lower environmental impacts[citation needed] and improve the security of supply.
Microgrids increasingly employ a mixture of different distributed energy resources, such as solar hybrid power systems, which significantly reduce the amount of carbon emitted.
Central plants are usually designed to take advantage of available economies of scale in a site-specific manner, and are built as "one-off", custom projects.
[10][11] Efficiency gains no longer come from increasing generating capacity, but from smaller units located closer to sites of demand.
Their development arose out of: Capital markets have come to realize that right-sized resources, for individual customers, distribution substations, or microgrids, are able to offer important but little-known economic advantages over central plants.
The increased value of these resources—resulting from improvements in financial risk, engineering flexibility, security, and environmental quality—often outweighs their apparent cost disadvantages.
However, modern embedded systems can provide these traits with automated operation and renewable energy, such as solar, wind and geothermal.
Vulnerabilities in control systems from a single vendor used at thousands of installations of given source can result in hacking and remotely disabling all these sources by a single attacker, thus largely reversing the benefits of decentralised generation, which has been demonstrated in practice in case of solar power inverters[18][19] and wind power control systems.
[20] In November 2024 Deye and Sol-Ark inverter manufacturer remotely disabled in some countries due to alleged regional sales policy dispute.
[23] Grid parity occurs when an alternative energy source can generate electricity at a levelized cost (LCOE) that is less than or equal to the end consumer's retail price.
Reaching grid parity is considered to be the point at which an energy source becomes a contender for widespread development without subsidies or government support.
Since the 2010s, grid parity for solar and wind has become a reality in a growing number of markets, including Australia, several European countries, and some states in the U.S.[24][needs update] Distributed energy resource (DER) systems are small-scale power generation or storage technologies (typically in the range of 1 kW to 10,000 kW)[25] used to provide an alternative to or an enhancement of the traditional electric power system.
[27] DER systems may include the following devices/technologies: Distributed cogeneration sources use steam turbines, natural gas-fired fuel cells, microturbines or reciprocating engines[30] to turn generators.
PV systems range from distributed, residential, and commercial rooftop or building integrated installations, to large, centralized utility-scale photovoltaic power stations.
[38] As most renewable energy sources and unlike coal and nuclear, solar PV is variable and non-dispatchable, but has no fuel costs, operating pollution, as well as greatly reduced mining-safety and operating-safety issues.
Hydroelectricity is the most widely used form of renewable energy and its potential has already been explored to a large extent or is compromised due to issues such as environmental impacts on fisheries, and increased demand for recreational access.
However, using modern 21st century technology, such as wave power, can make large amounts of new hydropower capacity available, with minor environmental impact.
Modular and scalable Next generation kinetic energy turbines can be deployed in arrays to serve the needs on a residential, commercial, industrial, municipal or even regional scale.
Such power generation also has minimal environmental impact and non-traditional microhydro applications can be tethered to existing construction such as docks, piers, bridge abutments, or similar structures.
[49] A large scale deployment of distributed generation may affect grid-wide functions such as frequency control and allocation of reserves.
These voltage issues affect mechanical grid equipment, such as load tap changers, which respond too often and wear out much more quickly than utilities anticipated.
This high ramp rate produces what the industry terms the duck curve that is a major concern for grid operators in the future.
A microgrid is a localized grouping of electricity generation, energy storage, and loads that normally operates connected to a traditional centralized grid (macrogrid).
Microgrid generation resources can include stationary batteries, fuel cells, solar, wind, or other energy sources.
The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power.
A widely used economic optimization tool is the Distributed Energy Resources Customer Adoption Model (DER-CAM) from Lawrence Berkeley National Laboratory.
Another frequently used commercial economic modelling tool is Homer Energy, originally designed by the National Renewable Laboratory.
[78][79] On 11 October 2017, California Governor Jerry Brown signed into law a bill, SB 338, that makes utility companies plan "carbon-free alternatives to gas generation" in order to meet peak demand.
