Abstract
Distributed energy (DE) refers to the use of small-scale power generation
located close to the load being served. Factors stimulating interest in DE
include utility restructuring, high electricity prices, and reliability
concerns. Also appealing is DE's potential to defer new investment in central
generation or T&D assets and to be strategically sited to alleviate T&D
constraints. One particular DE application, combined heat and power (CHP),
offers the benefit of high efficiency.
What would be the implications for utilities of increased use of distributed
energy? DE could potentially lead to lost revenue but also offers
opportunities, especially if utilities own the distributed assets or are able
to dispatch customer-owned generation to provide relief during periods of
excessive system demand, local distribution outages, or other grid emergencies.
To gain a better understanding of these issues, this report looks at the most
common DE technologies and their applications, and how their use can affect
individual customer loads and aggregated distribution and total system loads.
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