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    Power S stems En ineerin Research Center

    PSERC Background Paper

    Distributed GenerationRobert H. Lasseter

    Professor Emeritus, Department of Electrical and Computer EngineeringUniversity of Wisconsin-Madison

    September 4, 2003

    The electrical power system consists of three major components: generation, ahigh voltage transmission grid, and a distribution system. The high voltagetransmission system links the generators to substations, which supply power tothe user through the distribution system. Interruptions in these connecting linkscan disrupt the flow of power from generators to the users.

    Over the last ten years the reserve capacity in transmission has been falling dueto increases in both electricity demand and generation capacity. This hasresulted in an over utilized transmission system with an increasing likelihood ofloss of power during a disturbance.

    One obvious solution is to build more transmission lines and improve reliabilityprotocols. A not so obvious alternative is to integrate generation within thedistribution system reducing the dependence of local loads on the transmissiongrid. This latter approach is referred to as distributed generation.

    It is generally agreed that any power production that is integrated within thedistribution system is called distributed generation. Distributed generationencompasses a wide range of generator technologies, such as internalcombustion engines, gas turbines, microturbines, fuel cells, photovoltaics andwind power. The larger units are normally gas turbines, large internal combustion

    engines, wind turbines and some fuel cells. Their ratings are in millions of wattsof power at thousands of volts. The applications include direct power support atsubstations and deferral of the need to build more transmission.

    While placing distributed generation at substations will reduce the reliance on thehigh voltage transmission grid, it does introduce problems of control and dispatchof each unit. At a minimum, additional central real time monitoring and controlsystems need to be designed and implemented. The net result is an increase in

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    the power system’s complexity. An example that neglects this complexity is IEEE1547 Standard for Interconnecting Distributed Resources with Electric PowerSystems. This standard requires that distributed generators disconnect from thegrid when there is a disturbance. In the case of a grid disturbance due tooverload, disconnecting is exactly the wrong action since the system needs loads

    not generation to disconnect.

    It is obvious that indiscriminant application of distributed generation with centralcontrol can cause as many problems as it may solve. A better way to realize theemerging potential of distributed generation is to take a system approach whichviews generation and associated loads as a subsystem or a “microgrid”. Thisapproach allows for control of distributed generation through load followingtechniques, reducing or eliminating the need for central dispatch. Duringdisturbances, the generation and corresponding loads can separate from thedistribution system to isolate the microgrid’s load from the disturbance (andthereby maintaining service) without harming the transmission grid’s integrity.

    This ability to island generation and loads together has a potential to provide ahigher local reliability than that provided by the power system as a whole.

    Smaller units, having power ratings in thousands rather than millions of watts,can provide even higher reliability and fuel efficiency. These units are alsoclustered with loads creating microgrid services to customer sites such as officebuildings, industrial parks and homes. Since the smaller units are modular, sitemanagement could decide to have more units than required by the customerload, providing local, online backup if one of the operating units failed.

    Most existing power plants, central or distributed, deliver electricity to user sites atan overall fuel-to-electricity efficiency in the range of 20-40%. This represents a lossof around 70% of the primary energy provided to the generator. To reduce thisenergy loss, it is necessary to either increase the fuel-to-electricity efficiency of thegeneration plant and/or use the waste heat. For site-based microgrids, it is mucheasier to place generators near the heat loads therebyallowing more effective useof waste heat than substation-based systems. Of course, there are specialsituations where the waste heat from large generators can also be utilized. Theseapplications produce both electricity and the byproduct ofonsite thermal energy,converting 80 percent or more of the input fuel into useable energy. It also has thepotential to dramatically reduce industrial sector carbon and air pollutant emissions.

    Economic, technology and environmental incentives, along with end userdemands, are changing the face of electricity generation and transmission.Centralized generating facilities are giving way to smaller, more distributed units.Either type of microgrid could help shoulder the nation’s demand for more power,less complexity and higher local reliability without further overburdening thetransmission grid.

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     Contact Information

    Robert H. Lasseter

    Site DirectorProfessor EmeritusElectrical and Computer EngineeringUniversity of Wisconsin-Madison1415 Engineering DriveMadison, WI 53706Phone: 608-262-0186Fax: 608-262-1267e-mail: [email protected] 

    Power Systems Engineering Research Center  428 Phillips HallCornell UniversityIthaca, NY 14853-5401Phone: 607-255-5601

    © 2003 University of Wisconsin Board of Regents

    mailto:[email protected]:[email protected]://pserc.org/http://pserc.org/http://pserc.org/mailto:[email protected]