Distributed generation (DG) systems use power generation technologies located near an electrical load, that is, systems located near the consumer, business or factory. In the past, small power generation units using fossil fuels (such as diesel) supplied safety back-up power in case of blackouts. In recent times the use of renewable energy systems on customer premises has led to a rise in the number of small DG systems.
Classical DG systems were likely to be backup systems or a means of avoiding high power costs during peak demand times but would generally not produce more energy than local demand. In contrast, modern DG systems are generally based on renewable energy systems such as solar or wind power. The transient nature of energy availability of these systems means that excess energy is often available from DG systems to feed back into the utility grid.
DG has economic benefits to the independent power producers because excess energy produced can be sold back to the utility by either net-metering or a sell-back contract. DG also has economical benefits for the utilities because power is generated close to the user site, thus decreasing electrical transmission costs. However, the transient nature of energy availability from DG requires a significant administrative effort to guarantee stable power supply at all times, and suggests that new developments in energy storage technologies are needed.
Some examples of distributed generation technologies are:
Why Distributed Generation in the N.W.T.?
Currently, remote communities in the Northwest Territories produce electricity by diesel generation. Use of diesel as a fuel for internal combustion engines releases at least a hundred times more smog-forming pollutants than the most efficient power plant. Pollutants released from diesel have been shown to increase the risk of health problems from asthma to lung cancer. In addition, the use of fossil fuels such as diesel contributes to climate change, which endangers the flora and fauna on which humans depend.
Distributed generation technologies are expected to mitigate climate change and to improve the environmental quality and human health of the residents in the N.W.T. Integration of renewable energies such as Distributed Generation workshop held in Inuvik in 2002.