Distributed Generation: Transforming the Electricity Network

Abstract

An increased share of distributed electricity generation could contribute substantially to lower carbon emissions, simultaneously improving energy security. Despite increasing interest in distributed generation (DG) its deployment has been slow so far in many industrialised countries, with some notable exceptions such as Denmark and the Netherlands. In most industrialised countries DG is seen, at best, as a complement to frameworks of centralised electricity generation. Low growth rates for DG are the consequence. This chapter argues that substantially increasing the share of DG requires a fundamental change in how we conceive the electricity system, guided by a more encompassing ‘system transformation’ perspective that recognises DG as a real alternative to centralised electricity generation. This perspective draws attention to necessary changes in the electricity infrastructure, including its technical and institutional components. The electricity network is one important part of the electricity infrastructure, and is the focus in this chapter.