ECN publication
Regulatory Improvements for Effective Integration of Distributed Generation into Electricity Distribution Networks
Scheepers, M.J.J.; Bauknecht, D.; Jansen, J.C.; Joode, J. de; G√≥mez, T.; Pudjianto, D.; Ropenus, S.; Strbac, G.
Published by: Publication date:
ECN Policy Studies 16-11-2007
ECN report number: Document type:
ECN-E--07-083 ECN publication
Number of pages: Full text:
58 Download PDF  

The growth of distributed electricity supply of renewable energy sources (RES-E) and combined heat and power (CHP) - so called distributed generation (DG) - can cause technical problems for electricity distribution networks. These integration problems can be overcome by reinforcing the network. Many European Member States apply network regulation that does not account for the impact of DG growth on the network costs. Passing on network integration costs to the DG-operator who is responsible for these extra costs may result in discrimination between different DG plants and between DG and large power generation. Therefore, in many regulatory systems distribution system operators (DSOs) are not being compensated for the DG integration costs. The DG-GRID project analysed technical and economical barriers for integration of distributed generation into electricity distribution networks. The project looked into the impact of a high DG deployment on the electricity distribution system costs and the impact on the financial position of the DSO. Several ways for improving network regulation in order to compensate DSOs for the increasing DG penetration were identified and tested. The DG-GRID project looked also into stimulating network innovations through economic regulation. The project was co-financed by the European Commission and carried out by nine European universities and research institutes. This report summarises the project results and is based on a number of DG-GRID reports that describe the conducted analyses and their results.

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