THE ROLE OF DISTRIBUTED GENERATION IN INDIAN ELECTRICITY PARADIGM Jitendra Singh Bhadoriya ( School of instrumentation davv ,indore) Abstract—this paper is an overview of some of the main issues in distributed generation (DG). It discusses various aspects of DG such as definitions, technologies, distributed power application, economics, environmental performance, reliability issues, the role of DG in the new electricity paradigm of India, and the comparative study of DG in India with respect to some developed country. It also presents some of the challenges that DG systems are confronting today. In this article, some benefits and potential problems of DG systems are brought out, and the current status of DG systems operation is presented. I. INTRODUCTION- The concept of distributed generation, which is now gaining worldwide acceptance, was started in the USA almost a decade ago. The earliest electric power systems were distributed generation (DG) systems intended to cater to the requirements of local areas. Subsequent technology developments driven by economies of scale resulted in the development of large centralized grids connecting up entire regions and countries. The design and operating philosophies of power systems have emerged with a focus on centralized generation. During the last decade, there has been renewed interest in DG. The relevance of these options for a developing country context is examined using data for India. New concerns are emerging in the power industry today. For example, although hydro power plants are recognized to be environmentally friendly, it is difficult to find new sites for hydro power plant installations in developed countries. Furthermore, some countries such as Germany and Sweden have enacted laws to decommission nuclear power plants, and under public pressure, retired nuclear power plants would not be replaced [1]. Additionally, in the
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THE ROLE OF DISTRIBUTED GENERATION IN INDIAN
ELECTRICITY PARADIGM
Jitendra Singh Bhadoriya ( School of instrumentation davv ,indore)
Abstract—this paper is an overview of some of the main issues in distributed generation
(DG). It discusses various aspects of DG such as definitions, technologies, distributed power
application, economics, environmental performance, reliability issues, the role of DG in the
new electricity paradigm of India, and the comparative study of DG in India with respect to
some developed country. It also presents some of the challenges that DG systems are
confronting today. In this article, some benefits and potential problems of DG systems are
brought out, and the current status of DG systems operation is presented.
I. INTRODUCTION-
The concept of distributed generation, which is now gaining worldwide acceptance, was
started in the USA almost a decade ago. The earliest electric power systems were distributed
generation (DG) systems intended to cater to the requirements of local areas. Subsequent
technology developments driven by economies of scale resulted in the development of large
centralized grids connecting up entire regions and countries. The design and operating
philosophies of power systems have emerged with a focus on centralized generation. During
the last decade, there has been renewed interest in DG. The relevance of these options for a
developing country context is examined using data for India.
New concerns are emerging in the power industry today. For example, although hydro power
plants are recognized to be environmentally friendly, it is difficult to find new sites for hydro
power plant installations in developed countries. Furthermore, some countries such as
Germany and Sweden have enacted laws to decommission nuclear power plants, and under
public pressure, retired nuclear power plants would not be replaced [1]. Additionally, in the
deregulated power sector of today, it is not easy to convince market players to invest in
multibillion dollar power generation and transmission projects where the payback period may
be very long [2].These issues, and the decentralization of power systems and liberalization of
the electricity sector, along with dramatically growing demand for electricity in developed
countries has made DG an attractive option that has been reconsidered by various entities in
the new electricity market such as customers, power distributors, power producers, regulators
and researchers.
II. DG Definitions
As per Wikipedia collections Distributed Generation (DG) is also known as on-site
generation, dispersed generation, embedded generation, decentralized generation, etc. It
varies from country to country. Over the last century, be it developed nation or developing
nation, on account of rapid industrialization causing high rate of growth in the demand for
electricity, everyone resorted to establishment of large scale centralized generation facility.
IEEE defines the generation of electricity by facilities sufficiently smaller than central plants,
usually 10 MW or less, so as to allow interconnection at nearly any point in the power
system, as Distributed Resources [2] The plants concerned were based on use of fossil-fuel
(solid, liquid as well as gas), hydro, nuclear elements. Due to the economy of scale with large
unit size, it became possible to have big centralized power stations near the sources to deliver
power to load centers through the medium of high voltage transmission lines over a long
distance. From environment point of view as well due to limitation of natural resources, it is
in fact advantageous too to have the plants away from populated areas. Of course like power
grid, gas grid has also been constructed that allows use of less polluting natural gas-based
plants right at the load center, where it may not be uncommon to have waste heat recovery
and use combined cycle plant to achieve higher efficiency and at the same time for heating in
winter days, if the need be. On the other hand Distributed Generation too is a method to
reckon with, particularly when unbundling of power sector has come up with generation,
transmission, and distribution recognized as distinct entities. Low capital investment, local
use of generated power by the load, absence of any high voltage transmission system, etc.
lead to flourishing of this type of decentralized generation. Advancement of technology with
renewable energy sources, gradual reduction in cost, ease of operation and maintainability,
etc., all go in favor of Distributed Generation as source of green power. Also if it is not as
replacement to centralized large generation, it is at least to supplement the entire effort of
generating capacity addition to a great extent. Further in the context of absence of right-of
way for drawing new high voltage lines, it is a boon as it envisages connectivity through low
voltage networks only and that too over short distance. In UK Distributed Generation is
defined [3] as a generation plant that is connected to a distribution network and not to a
transmission network. The US Department of Energy (DOE) defines DG as follows:
“Distributed power is modular electric generation or storage located near the point of use.
Distributed systems include biomass-based generators, combustion turbines, thermal solar
power and photovoltaic systems, fuel cells, wind turbines, micro turbines, engines/generator
sets, and storage and control technologies. Distributed resources can either be grid connected
or independent of the grid. Those connected to the grid are typically interfaced at the
distribution system” [4].In a similar tone in USA it is referred to as small scale generation of
electric power by a unit sited close to the load being served. Both of these justify terming
Distributed Generation as embedded to distribution system. However, as per American
Council for an Energy Efficient Economy for Distribution Power Generation, its is also
known as any technology that produces power outside of the utility, which is in fact the case
for this type of generation. Furthermore, in the literature, terms such as embedded generation,
dispersed generation, distributed energy resources or DER and decentralized generation, have
also been used in the context of DG. The term dispersed generation is usually referred to a
distributed power generation unit regardless of the technology, and whether it is connected to
the grid or
completely independent of the grid [5] In India too effectively it means decentralized small
scale generation directly supplying load and having interconnection at low voltage with
distribution network. Moreover it is very often in the context of electrification of rural areas
including remote villages / hamlets. The above definitions do not specify any criterion or
classification of DG based on their capacity. Although, there is no generally accepted rule or
standard, the following ratings are used in different countries and situations:
1) The DOE considers distributed power systems to typically range from less than a kilowatt
(kW) to tens of megawatts (MW) in size as DG unit [4].
2) The Electric Power Research Institute (EPRI) considers small generation units from a few
kW up to 50 MW and/or energy storage devices typically sited near customer loads or
distribution and sub-transmission substations as distributed energy resources [6].
3) According to the Gas Research Institute, typically between 25 kW to 25 MW generation
units are considered as DG [5].
4) Swedish legislation treats generating units under 1500 kW differently from those unit
capacities higher than 1500 kW. Then, it can be considered that DG capacity in Sweden is
defined as those units under 1500 kW [7].
From the above discussion, it is evident that capacity specification for DG units is not
universally defined. Various generating schemes under completely diverse rating, behavior,
regulation, purpose and locations are currently being considered as DG in the power industry.
III. Indian power sector
India had an installed capacity of 2, 10,951.72 MW (Ministry of Power,) in the centralized
power utilities on 31st March2012. Of this 140976.18 MW is accounted for by thermal power
plants, 39,339.40MW of large hydro plants and 4,780.00 MW of nuclear, 25,856.14 MW of
renewable energy resources (Shown in Table 1). The focus of power planning has been to
extend the centralized grid throughout the country. However the capacity addition has not
been able to keep pace with the increasing demand for electricity. This is reflected by the
persistent energy and peak shortages in the country. This requires an average capacity addition
of more than 10,000MW per year. Centralized generation alone is unlikely to meet this target.
In this context DG is likely to be important. DG also has the advantage of improving tail-end
voltages, reducing distribution losses and improving system reliability. The present installed
capacity of DG is about 13,000MW (10,000MW diesel, 3000MW renewable). The majority of
this is accounted for by diesel engines that are used for back-up power (in the event of grid
failure) and operate at very low load factors. The share of the energy generation from DG is
marginal (about2–3% of the total generation). Apart from the diesel engines, the DG options
that have been promoted in India are modern renewable. India is probably the only country
with a separate Ministry of Non-conventional Energy Sources (MNES). The renewable energy
installed capacity was 205.5MW in 1993 (104.6MW small hydro, 39.9MW Wind). This
increased to 2978 MW in 2001 (as on 31st March2001) and accounted for almost 3% of