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Electric Power Systems Research 71 (2004) 119–128

Distributed generation technologies, definitions and benefits

W. El-Khattam∗ , M.M.A. Salama
Department of Electrical and Computer Engineering, University of Waterloo, 200 University Avenue West, Waterloo, Ont., Canada N2L 3G1

Received 15 August 2002; accepted 14 January 2004

Abstract

As a result of the application of deregulation in the electric power sector, a new identity appeared in the electric power system map known
as “distributed generation” (DG). According to new technology, the electric power generation trend uses disbursed generator sized from
kW to MW at load sits instead of using traditional centralized generation units sized from 100 MW to GW and located far from the loads
where the natural recourses are available. This paper introduces a survey of this revolutionary approach of DGs, which will change the way
electric power systems operate along with their types and operating technologies. Some important definitions of DGs and their operational
constraints are discussed to help in understanding the concepts and regulations related to DGs. Furthermore, we will survey the operational and
economical benefits of implementing DGs in the distribution network. Most DG literatures are based on studying the definitions, constructions
or benefits of DGs separately. However, in our paper we aim to give a comprehensive survey by adding new classifications to relate the DG
types, technologies and applications to each other.
© 2004 Elsevier B.V. All rights reserved.

Keywords: Distributed generation (DG); Fuel cell (FC); Micro-turbine (MT); Photovoltaic (PV); Wind turbine (WT)

1. Introduction • PV industries and companies expect about one million

rooftops equipped by PV modules within the coming
Distributed generation (DG) is not a new concept but it decade [3].
is an emerging approach for providing electric power in the • The largest commercial 1 MW FC (five 200 kW units)
heart of the power system. It mainly depends upon the in- installed by the US Postal Service at the Anchorage Mail
stallation and operation of a portfolio of small size, com- Processing Center, Alaska and is connected to the utility
pact, and clean electric power generating units at or near an grid [4].
electrical load (customer). Till now, not all DG technologies • In the year 2000, new wind farms of 3000 MW capacities
and types are economic, clean or reliable. Some literature were installed [3].
studies delineating the future growth of DGs are:
Surveying DG concepts may include DG definitions, tech-
• The Public Services Electric and Gas Company (PSE&G), nologies, applications, sizes, locations, DG practical and op-
New Jersey, started to participate in fuel cells (FCs) and erational limitations, and their impact on system operation
photovoltaics (PVs) from 1970 and micro-turbines (MTs) and the existing protective devices. This paper focuses on
from 1995 till now. PSE&G becomes the distributor of surveying different DG types, technologies, definitions, their
Honeywell’s 75 kW MTs in USA and Canada. Fuel cells operational constraints and operational and economical ben-
are now available in units range 3–250 kW size [1]. efits. Furthermore, we aim to present a critical survey by
• The Electric Power Research Institutes (EPRI) study proposing new DG classifications.
shows that by 2010, DGs will take nearly 25% of the new
future electric generation, while a National Gas Founda-
tion study indicated that it would be around 30% [2]. 2. Types of distributed generation

There are different types of DGs from the constructional

∗ Corresponding author. Tel.: +1-519-880-0941. and technological points of view as shown in Fig. 1. These
E-mail address: [email protected] (W. El-Khattam). types of DGs must be compared to each other to help in tak-

0378-7796/$ – see front matter © 2004 Elsevier B.V. All rights reserved.
doi:10.1016/j.epsr.2004.01.006
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120 W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128

Fig. 1. Distributed generation types and technologies.

ing the decision with regard to which kind is more suitable • They have well-known technology and they can start-up
to be chosen in different situations. However, in our paper easily, have good load tracking characteristics and require
we are concerned with the technologies and types of the new less maintenance due their simple design [5].
emerging DGs: micro-turbines and fuel cells. • They have lower electricity costs and lower capital costs
The different kinds of distributed generation are discussed than any other DG technology costs [1].
below. • They have a small number of moving parts with small
inertia not like a large gas turbine with large inertia.
2.1. Traditional combustion generators • Modern power electronic interface between the MT and
the load or grid increases its flexibility to be controlled
2.1.1. Micro-turbine (MT) efficiently [6].
Micro-turbine technologies are expected to have a bright
future. They are small capacity combustion turbines, which There are different types of MTs according to their op-
can operate using natural gas, propane, and fuel oil. In a sim- eration such as gas turbines and combustion turbines. Gas
ple form, they consist of a compressor, combustor, recupera- turbines are combustion turbines that produce high temper-
tor, small turbine, and generator. Sometimes, they have only ature and pressure gas. This high-pressure gas is used to
one moving shaft, and use air or oil for lubrication. MTs are rotate turbine shaft, which drives a compressor, an electric
small scale of 0.4–1 m3 in volume and 20–500 kW in size. alternator and generator. Gas turbines are always used above
Unlike the traditional combustion turbines, MTs run at less 1 MW, but nowadays we can generate electricity through
temperature and pressure and faster speed (100,000 rpm), small modulars with a micro-gas turbine of 200 kW size
which sometimes require no gearbox [5]. Some existing [5]. The produced heat can be used as a waste heat recov-
commercial examples have low costs, good reliability, fast ery to generate steam for compound heat and power (CHP)
speed with air foil bearings ratings range of 30–75 kW are as shown in Fig. 2, combined cycle application and fuel
installed in North-eastern US and Eastern Canada and Ar- cell/turbine hybrids applications.
gentina by Honeywell Company [1] and 30–50 kW for Cap- MT types are different according to their operating cycle
stone and Allison/GE companies, respectively [6]. Another configurations [7]:
example is ABB MT: of size 100 kW, which runs at maxi-
Simple-cycle gas turbines: Simple gas turbines can be
mum power with a speed of 70,000 rpm and has one shaft
either a single-shaft machine (with air compressor and
with no gearbox where the turbine, compressor, and a spe-
power turbine (PT) on the same shaft) or a split-shaft
cial designed high speed generator are on the same shaft [5].
machine. Also, they have a burner or combustor, and
an electric generator rotated by power turbine.
2.1.1.1. Advantages of MTs.
• They can be installed on-site especially if there are space
limitations. Also they are compact in size and light in
weight with respect to traditional combustion engines.
• They are very efficient (more than 80%) and have lower
emissions (less than 10 ppm NOx ) with respect to large
scale ones. Fig. 2. Typical micro-turbine operation.
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W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128 121

Fig. 3. Combined cycle gas turbine.

Recuperated gas turbines: They are similar to simple-cycle spectively. It provides clean power and heat for several ap-
gas turbines, but with a special heat exchanger (a re- plications by using gaseous and liquid fuels [9]. FCs can use
cuperator). This recuperator uses the output exhaust a variety of hydrogen-rich fuels such as natural gas, gaso-
thermal energy to preheat compressed air in its pass to line, biogas or propane [10]. FCs operate at different pres-
the burner to increase the turbine electrical efficiency. sures and temperatures which varies from atmospheric to
Combined cycle gas turbine: They use the exhaust energy hundreds of atmospheric pressure and from 20 to 200 ◦ C,
in a heat recovery steam generator (HRSG) based on the respectively [10].
concept of heat recovery, which may include a burner to As shown in Fig. 4, a typical FC consists of two oxidant
increase the steam output. Steam from the HRSG drives electrodes separated by an electrolyte member. Oxygen, as
a steam turbine, which generates power in addition to an oxidant, passes through one electrode (cathode) either
the main power turbine as shown in Fig. 3 to increase at low pressure (using a blower) or at high pressure (using
the total electric efficiency. air compressor) [8]. Hydrogen, as a fuel, passes through
the other electrode (anode). FC technology is based on an
2.2. Non-traditional generators electrochemical process in which hydrogen and oxygen
are combined to produce electricity without combustion.
2.2.1. Electrochemical devices: fuel cell (FC) The catalyst splits the hydrogen atom into a proton and
The fuel cell is a device used to generate electric power an electron. The proton passes through the electrolyte,
and provide thermal energy from chemical energy through however, electrons create a separate current that can be
electrochemical processes. It can be considered as a battery utilized before they return to the cathode, to be demodu-
supplying electric energy as long as its fuels are continued lated with the hydrogen and oxygen in a molecule of water
to supply. Unlike batteries, FC does not need to be charged [8,9].
for the consumed materials during the electrochemical pro- The operating stages and products of this electrochemi-
cess since these materials are continuously supplied [8]. FC cal process, as shown in Fig. 5, are direct current electric
is a well-known technology from the early 1960s when they power, water, heat, and some low emitted gases (like NOx
were used in the Modulated States Space Program and many and CO2 ) with respect to traditional generators and hence is
automobile industry companies. Later in 1997, the US De- considered an environmentally safe electric power genera-
partment of Energy tested gasoline fuel for FC to study its tion [9]. A fuel processor is used to convert the source fuel to
availability for generating electric power [6]. FC capacities a hydrogen-rich fuel stream, which is needed for the electro-
vary from kW to MW for portable and stationary units, re- chemical reaction. A power electronic device (a power con-

Fig. 4. Polymer electrolyte membrane FC. Fig. 5. FC construction, operation, and products.
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122 W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128

ditioner) has to be used to convert the output direct current fuel cell (AFC), direct methanol fuel cell (DMFC), phospho-
to the alternating one to be connected to the grid and control ric acid fuel cell (PAFC), molten carbonate fuel cell (MCFC)
its voltage level according to the required application [8,9]. and solid oxide fuel cell (SOFC) as shown in Table A.1
The hydrogen used can be obtained either by refor- (Appendix A) [8–10]. The electrochemical process is based
mation of hydrocarbons or by means of chemical and on the electrolyte media used, which determines the FC op-
electrolysis operations from water [10]. The most com- erating temperature [9,11].
monly used method is reformation of hydrocarbons such
as natural gas because it is already commercially available 2.2.2. Storage devices
as it can be transmitted by means of pipelines. Produc- It consists of batteries, flywheels, and other devices, which
ing hydrogen can be done chemically by using steam on are charged during low load demand and used when required.
heated carbon. The output products of this process are It is usually combined with other kinds of DG types to supply
H2 and CO2 . This chemical operation requires heating for the required peak load demand [6].
the steam and the carbon, which is considered a waste of These batteries are called “deep cycle”. Unlike car bat-
energy. Another means of producing H2 , and storing the teries, “shallow cycle” which will be damaged if they have
energy in it, is from electrolysis of water. This process is several times of deep discharging, deep cycle batteries can
not economic as it uses electric energy to do the process be charged and discharged a large number of times without
and cover its losses [10]. Usually the reforming process, any failure or damage. These batteries have a charging con-
which is known as “steam catalytic reforming process” to troller for protection from overcharge and over discharge as
get a hydrogen-rich fuel [11], occurs at high temperature it disconnects the charging process when the batteries have
around 800 ◦ C. Therefore, we need an external reformer full charge. The sizes of these batteries determine the battery
device for low temperature operating FC as shown in Fig. 5 discharge period. However, flywheels systems can charge
[8,9]. and provide 700 kW in 5 s [6].

2.2.1.1. Advantages of FCs. 2.2.3. Renewable devices

Green power is a new clean energy from renewable re-
• FCs transform the fuel chemical energy to electric power sources like; sun, wind, and water. Its electricity price is still
with a 60% efficiency, which is considered to be twice of higher than that of power generated from conventional oil
that of the traditional generating stations [11]. sources. Some types of renewable resources are discussed
• The absence of moving parts in FCs operation, except below:
for air blowers (for O2 ) and fuel (for H2 ) and/or water
pumps, results in very low noise levels, relatively higher 2.2.3.1. Photovoltaic (PV).
efficiencies and emits lower air pollutants [9,11].
• No combustion is involved in the FC operation make it en- 1. Construction: The basic unit of PV is a cell that may be
vironmental friendly generation with approximately neg- square or round in shape, made of doped silicon crys-
ligible emissions (low CO2 ) [9]. tal. Cells are connected to form a module or panel and
• Also, due to the output bi-product (electricity and heat as a modules are connected to form an array to generate the
result of high fuel conversion efficiency) and their prices, required power.
small size FCs in the coming recent years are expected to 2. Operation and ratings: Cells absorb solar energy from
be implemented in commercial and residential buildings the sunlight, where the light photons force cell electrons
for both purposes of lighting and heating at the same time to flow, and convert it to dc electricity. Practically, each
[9,10]. cell provides 2–4 A according to its size with an output
• Today, FCs consist of staking cells, which give it the flex- voltage of 0.5 V. Normally an array, cells connected in
ibility to be built to match specific power needed with less series, provides 12 V to charge batteries.
capital cost. FC power plants are commercially available 3. Restrictions: PVs consist of modulars which can be con-
for use by electric power producers and industrial appli- nected to provide a variety of power ranges but on the
cations [10]. other hand there are many restrictions:
• It provides low output power.
2.2.1.2. Disadvantages of FCs. From the electrical point • The cost of land where PVs installed is expensive
of view, as a result of aging the FC internal impedance slowly (1 acer of land produces 150 kW) [1].
increases, therefore, we need a power electronic interface to • It is restricted to certain geographic and weather fea-
regulate the output voltage [9]. tures [1].

2.2.1.3. FC types and technologies. There are different

Some applications of PV.
types and operating technologies of fuel cells depending on
the electrolyte used such as: proton exchange membrane or • Space programs as it provides power to satellites equip-
polymer electrolyte membrane fuel cell (PEMFC), alkaline ments and transmitters in space.
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W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128 123

• Remote communications, lighting road signs, roof 3. Different DG classifications

projects for home lighting and heating and road lighting.
Also, PV provides “load direct application” such as so- Usually DGs are classified according to their differ-
lar water pumping for use or storage that operates only ent types and operating technologies. However, it is more
while sunlight exists. PV is cost efficient especially if convenient to classify them from the electric point of
the nearest line of power is far from the application’s view to study their impact on the electric system. Dif-
place. ferent classifications can be obtained to differentiate be-
• Solar energy can be used during the peak loads to fit with tween DG types according to their electrical applica-
load curve peaks. For example during summer days PV is tions, supply duration, generated power types, electric
used to provide the necessary excess power required due ratings and renewable and non-renewable technologies.
to air conditioning and cooling processes and the rest of Several proposed DG classification will be discussed as
the power is supplied to the grid so there is no need to be follows.
“dispatchable”.
3.1. Applications
There are different types of PV applications such as:
• PV–diesel hybrid power system, which uses supervisory Different DG technologies are implemented to fulfill the
control and data acquisition (SCADA) for control pur- requirements of a wide range of applications. These appli-
poses. cations differ according to the load requirements. As a result
• Standalone PV direct-coupled system supplies the out- they affect the types of DGs used. Some of these applica-
put dc power directly to a dc load, which operates only tions are discussed below:
when there is solar energy. However, standalone PV can
Standby: DG can be used as a standby to supply the re-
be combined with storage “deep cycle” batteries to main-
quired power for sensitive loads, such as process in-
tain supplying loads even during nights, cloudy and bad
dustries and hospitals, during grid outages.
weather.
Stand alone: Usually, isolated areas use DGs as a power
• Also, in some applications PV systems can have an in-
provider instead of connecting to the grid. These areas
verter to operate ac loads as well.
have geographical obstacles, which make it expensive
to be connected to the grid.
2.2.3.2. Wind-turbines (WT). Wind energy is not a new
Peak load shaving: The electric power cost varies accord-
form it has been used for decades. A WT consists of a rotor,
ing to the load demand curves and the corresponding
turbine blades, generator, drive or coupling device, shaft, and
available generation at the same time. Hence, DGs can
the nacelle (the turbine head) that contains the gearbox and
be used to supply some loads at peak periods, which
the generator drive. Modern wind turbines can provide clean
reduce the electricity cost for large industrial customers
electricity as individuals or as wind farms. Wind turbine
who used to pay time-of-use rates (TOU).
blades usually are two or three blades each nearly 10–30 m
Rural and remote applications: DG can provide the
long.
stand-alone remote applications with the required
power. These applications include lighting, heating,
Operation. The wind rotates the windmill-like blades,
cooling, communication, and small industrial pro-
which in turn rotate their attached shaft. This shaft operates
cesses. Even more, DGs can support and regulate the
a pump or a generator that produces electricity.
system voltage at rural applications (sensitive loads)
Although, the energy characteristics of larger wind turbine
connected to the grid.
farms are closer to the centralized energy sources, small
Providing combined heat and power (CHP): DGs provid-
wind turbines (working as modules) can be combined with
ing CHP as a cogeneration has a high overall energy
PV and battery systems to serve area of 25–100 kW.
utilization efficiency. The produced heat, from convert-
ing fuel into electric power process, is used onsite for a
The advantages of wind turbines are. wide range of applications in hospitals, large commer-
cial areas and process industries.
• Contribute to clean air (no pollution) unlike the traditional
Base load: Utility owned-DGs are usually used as a base
oil fuel that contributes acid rain (from sulphur dioxide or
load to provide part of the main required power and
nitrogen oxides) and global warming (from carbon diox-
support the grid by enhancing the system voltage pro-
ide) to the environment.
file, reducing the power losses and improving the sys-
• Contribute to global safety (non-hazardous or radioactive
tem power quality.
wastes) unlike nuclear power.
• Future sustainable (It has no input fuel, just the wind A classification can be concluded by relating most candi-
which will not run out by time). dates of DG types and also the traditional centralized gener-
• Traditional fuel costs increase with time but wind energy ation stations to different wide range applications as shown
costs decrease with time. in Table 1.
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124 W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128

Table 1
Comparison between common energy types
Energy type Main applications

Micro-turbines Help for peak load shaving, co-generation, and as a base load.
Commercially available in small units with sizes 30–75 kW [1].
Fuel cells Suitable for providing CHP for air-conditioning, cooling, and heating purposes.
Large stations are suitable for base load applications.
Commercially available in small units with sizes 3–250 kW and connected as modular to serve large loads [1].
Photovoltaic Stand alone and base load in some rural applications if combined with batteries.
It can be considered as a maintenance free supply for telecommunication and road lighting and advertising.
Wind turbines Remote homes and farms and process industry applications.
Traditional internal combustion Already in use for several years, but they have high emissions and operation and maintenance costs in
engines (diesel engines) addition to diesel’s hazardous during transportation to remote consumers [1].
Most of them are used for peak load shaving and backup operation (for reliability purposes) not for
continuous operation.
Central power generation (fossil fuel) Main electricity generation as the main base load.
Used for peak load shaving and backup operation.

Supply duration and power type: DG output power dura-

tion varies significantly according to the DG size, type
and application used. Its duration can be a long period
of supply mainly for base load applications, unsteady
supply that is generated from renewable resources and
short period of supply, which is used to support the
grid supply. A comparison can be done according to
the amount of power supplied, its duration and its type
(either active power, reactive power or both) as shown
in Table 2.
DG capacities: DG capacities are not restrictedly defined
as they depend on the user type (utility or customer)
and/or the used applications. The most common clas-
sification used is shown in Fig. 6. These levels of ca-
pacities vary widely from one unit to a large number Fig. 6. Distributed generation capacities [2].
of units connected in a modular form.
Generated power type: The output electric current can be
either direct or alternating. FC, PV and batteries pro- like MT and WT provide an alternating current, which
duce direct current, which is suitable for dc loads. How- for some applications must be controlled using modern
ever, we can convert this current to an alternating one power electronic equipments to get regulated voltage.
for ac loads and for grid connections. This conversion Technology: Another attempt for DG classification can be
can be done through a power electronic interface be- done according to the type of the fuel used. It can be
tween the DG device and the grid. Other types of DGs either fossil or non-fossil fuel as shown in Fig. 7. This

Table 2
Comparison between common energy types for power and time duration
Power supplied period DG type Remarks

Long period supply Gas turbine and FC stations Provide P and Q except FC provides P only.
Used as base load provider.
Unsteady supply Renewable energy systems; PV arrays, WT Depend on weather conditions.
Provide P only and need a source of Q in the network.
Used in remote places.
Need control on their operation in some applications.
Short period supply FC storage units, batteries, PV cells Used for supply continuity.
Store energy to use it in need times for a short period.
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W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128 125

network or connected to the network on the customer site

of the meter” [2].
This definition under the deregulation trend encourages us
suggest addition to the transmission and distribution systems
definition. A transmission system can be defined as: “The
system, which is operated by an independent company and
not providing power generation or involved in distribution or
retail service” [2]. A distribution system can be defined as:
“The system, which is operated by a distribution company,
can provide power generation through an electric utility or
customers and involved in distribution or retail service”.
The proposed addition to the transmission system, distri-
bution system and DG location definitions are helpful for
Fig. 7. Distributed generation technologies. many exceptional cases as follows [2]:
• If a large industrial customer site is connected directly on
classification is not commonly used like that of Fig. 1, the transmission network and has a CHP system. In this
as our concern is the emerging DG technologies not situation CHP can be considered as a DG because it is
their fuel. connected directly on the customer side of the meter.
• If a distribution network capacity is limited, a medium
size wind farm can be connected directly to a transmission
4. Distributed generation definitions system. In this case the wind farm cannot be considered
as a DG.
DG is a fairly new trend in the electricity industry, market, As a special case not following the location definition,
and deregulated systems. Till now, there are no consistent DGs can be implemented by the utility itself by placing them
definitions that can describe DG terminologies. However, into certain predetermined substations to help in reducing
there are some definitions that can be considered common the peak load capacity and delaying the need for substation
for most literatures. Some of these definitions are discussed capacity expansion [1]. This idea can be extended in im-
below. plementing DG as a new alternative for distribution system
planning.
4.1. DG names
4.4. DG rating
There are several terms used to refer to distributed gen-
eration, for example: There are different definitions for generation size range
according to some institutes and literatures as shown in
• “Dispersed generation” used in North America.
Fig. 6. However, these definitions are dependent on the gov-
• “Embedded generation” used in South American coun-
ernment regulations as discussed below.
tries.
• “Decentralized generation” used in Europe and some
4.4.1. In the Swedish market
Asian countries.
The DG capacity is up to 1.5 MW. This value is not enough
However, literature survey recommended the name of for deciding that this generation rating is for DGs or not,
“distributed generation” to be used all over the world [2]. due to the cases below:
• In case of wind energy, Sweden plans offshore wind farms
4.2. DG purpose having a maximum capacity of 1000 MW. Each wind tur-
bine rating is 1.5 MW, which can be considered as a DG
Basically, it is used to provide part or all of a customer’s based on the modular rating not the total wind farm ca-
real power demand and/or as a standby supply. Therefore, pacity.
according to this definition, there is no need to supply reac- • In the case of hydro modulars the capacity is calculated as
tive power from DG as in the case of FC for example [1,2]. the total rating of the power station not for each individual
modular. So in most cases they are not considered to be
4.3. DG location as a DG.

A definition: “The location of distributed generation is 4.4.2. In Germany (Berlin)

defined as the installation and operation of electric power The local utility BEWAG built a power generation sta-
generation modulars connected directly to the distribution tion in the city centre. This power station, which feeds into
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110, 33 kV distribution lines, provides electricity and heat • Renewable energy DGs: This kind of energy resource in-
(300 MW each, respectively). The generated electricity and cludes WTs and PV arrays. The main characteristic of
heat are consumed locally so that this power station can be this generation is that it cannot be dispatched in emer-
considered as a DG. gency situations as its outputs are mainly affected by en-
According to the above discussion there is no common vironmental conditions such as wind speed and sunlight,
DG rating definition because the maximum capacity of a respectively. In some kinds of this generation, the output
DG connected to the distribution network depends on the power generated is related to the system frequency (f) and
distribution system’s capacity and its voltage level. However, voltage at the bus where DGs are connected (Vg ).
most literatures use small and medium DG sizes.
Pg = f(f, Vg ) (3)

4.5. DG power delivery area • Storage devices: Some kinds like batteries can be dis-
patched to control the output power and their period of
There is no specific definition for DG power delivery area, duration. However, each kind has different characteristics.


but usually the DG produced energy is supposed to be con- pg t T ≤ E (4)
sumed within the distribution network. However, DGs can t=1:j
feed back some of their generated electric power to the trans-
mission system if it exceeds the distribution network load where Pgt is the released output power at time t; E, the
demand where DGs are installed. total available storage energy; and T is the time elapsed.
• FCs, renewable, and storage devices: They produce ac-
tive power only. Therefore, the required reactive power
4.6. DG operational constraints
can be obtained from the system by one of the following
methods: a fixed capacitor, a controllable capacitor with a
To study the effect of implementing DGs in the distribu-
fixed power factor or interfacing with the network through
tion network, we have to discuss the DG operational con-
power electronic devices. The three possibilities can be
straints. Like any electric device, DGs have both steady
described as follows:
state and dynamic models. In our paper, we are concerned
with the steady state model as we are studying the impact Qg = Qfix (fixed)
and benefits of implementing DGs as a source of steady Qg = f(Pg ) (fixed power factor) (5)
active power. Steady state operation is usually used in nor- Qg = QSystem Interfacing
mal operation and in case of small disturbance existing
in the system while DGs are still connected to the grid
and supplying power with a constant frequency. The opera- 5. Benefits of distributed generation
tional constraints differ according to the DG type as follows
[12]: DG implementation in the distribution system has many
benefits. These benefits enface the advantages that will be
• Gas turbine, combustion engines, and hydro generation
gained. Some DGs benefits are discussed below:
DGs: These types of DG generations can be considered
alike, though not identical to, the traditional central gen- 1. From the economical point of view:
eration, which has the ability to be dispatched. But they • DGs can provide the required local load increases by
have two additional constraints. installing them in certain locations so they can reduce
(a) The output generated power: The DG output power or avoid the need for building new T&D lines, upgrade
(Pg ) has minimum and maximum power limits. The the existing power systems and reduce T&D networks
minimum output generated power of some DG is essen- capacity during planning phase [3,12,18].
tial in the case of co-generation required for some ap- • DGs can be assembled easily anywhere as modules
plications, like heating purposes. The maximum power (FC-MT and MT-batteries) which have many advan-
generation limit is for thermal and overloading capabil- tages as [2]:
ities. (a) They can be installed in a very short period at any
location. Each modular can be operated immediately
Pg min ≤ Pg ≤ Pg max (1) and separately after its installation independent of
other modules arrival and not affected by other mod-
(b) The ramp rate: This ramp is due to the natural delay
ular operation failure.
taken by DGs to increase the amount of output generated
(b) The total capacity can be increased or decreased by
power in a certain defined duration.
adding or removing more modules, respectively.
Pg t ≤ Pg limit (2) • DGs are not restricted by the centralization of the
power as they can be placed anywhere. Thus, DG lo-
where Pgt is the amount of the increased output gen- cation flexibility has a great effect on energy prices
erated power from moment t − 1 to moment t. [13]. However, renewable DGs technology such as hy-
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W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128 127

Table A.1
Types of fuel cells
Type Application availability The electrochemical media and temperature Characteristics
used
PEMFC It is the primary candidate, according to It is a thin solid proton conducting It is compact size with low weight as it
the US Department of Energy (DOE), for membrane located between two highly has non-metallic construction hardware [9].
commercial applications; buildings, dispersed metal alloy particles (mostly
replacements for rechargeable batteries and platinum) electrodes [9].
internal combustion automobile engines [8]. It uses polymer membrane [8]. The use of solid electrolyte reduces
corrosion [11].
H+ ion transports from anode to cathode It provides very high power density and its
where water is released [9]. efficiency ca. reach 50% [8].
It operates around 80 ◦ C, which is It is flexible; the output can vary quickly
considered relatively low operating to meet changes in power demand, and
temperature with respect to other FCs [9]. suites applications such as the required
automobiles quick start-up [8].
AFC Used by NASA on space missions [9,11]. It uses alkaline potassium hydroxide as an Its efficiency reaches up to 70%.
electrolyte [9,11].
It is expensive for commercial applications. It operates less than 120 ◦ C [9].
Negative charged ion transports from
cathode to anode where water is released
[9].
PAFC More than 200 modules are commercially It uses pure liquid phosphoric acid and It provides electrical conversion and overall
installed all over the world in [6,8,9,11]: operates electrolyte at 200 ◦ C [8,9,11]. CHP thermal efficiency of 37 and 87%,
respectively [9].
H+ ion transports from anode to cathode It uses its wasted heat to get steam.

Residential and commercial: hotels, where water is released [9]. Approximately 85% of the produced steam
office buildings is used for cogeneration in the reforming

Utility: hospitals, nursing, schools, utility process, which requires more external heat
power plants, an airport terminal, and [9,11].
municipal waste dump.
MCFC It is still in the pre-commercial state [6]. It uses a liquid mixture of alkali carbonates Tests promise high values of efficiency [11].
Examples of FCs with electrical utility electrolyte and nickel and nickel-oxide
uses are 1.8 MW in Santa Clara, CA, USA electrodes [8,9,11].
and 1 MW in Kawagoe, Japan [9]. Negative charged ion transports from Inexpensive catalysts used [11].
cathode to anode where water is released
[9].
It operates at 650 ◦ C, and hence can
incorporate the reformer operation inside
the FC [8,9].
SOFC It is still in the pre-commercial state and is It uses oxygen ion conducting solid Its efficiency can reach up to 58% [9].
used by electric utility for [6,11]: nonporous ceramic [9].

High-power applications including Negative charged ions transports from Inexpensive catalysts and solid electrolytes
industrial and large central electricity cathode to anode where water is released used [11].
generating plants. [9].

Automobile industry. Its temperature reaches up to 1000 ◦ C by
using a hard ceramic material instead of a
liquid electrolyte, therefore, it can
incorporate the reformer operation inside
the FC [9].
DMFC It is used to replace batteries in portable It uses a polymer membrane electrolyte Its efficiency is about 40% at 60 ◦ C and it
power applications [8]. similar to the PEMFC. However, catalyst can be higher for higher temperatures.
anode draws the H2 from the liquid
methanol, eliminating the need for a fuel
reformer [8].

dro, wind, and solar units require certain geographical heating, cooling or improving their efficiency by gen-
conditions. erating more power, which is not applicable in the sit-
• DGs are well sized to be installed in small increments uation of centralized generation alone [13].
to provide the exact required customer load demand. • DGs can reduce the wholesale power price by supply-
• Remote or stand-alone CHP DGs can be more eco- ing power to the grid, which leads to reduction of the
nomical [14]. CHP DGs can use their waste heat for demand required [15].
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128 W. El-Khattam, M.M.A. Salama / Electric Power Systems Research 71 (2004) 119–128

• Due to deregulation DGs will be of great importance Appendix A

in generating power locally especially if the location
margin pricing (LMP) is applied for independent trans- See Table A.1.
mission operators (ISO’s) and regional transmission
organizations (RTO’s). LMP can give an indication of
where DGs should be installed [15]. References
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