Introduction to Distributed Generation

This new webcast introduces the subject of distributed generation.

Distributed Generation (DG) and Renewable Energy Sources (RES) have attracted a lot of attention in Europe. Both are considered to be important in increasing the security of energy supplies by decreasing the dependency on imported fossil fuels and in reducing the emissions of greenhouse gases. Distributed generation refers to the local generation of electricity and (in the case of a cogeneration system) heat for industrial processes or space heating, etc. The economics of DG and RES depend on many factors. The main cost items are the initial investments, fuel prices, energy prices (electricity and heat) and the cost of connecting to the grid. Biomass options generally give the lowest cost electricity of all RES-based options. On-shore wind and hydro capacity come second. The most expensive option is solar cells. However, many countries have stimulation measures for renewable systems, including solar cells. The viability of DG and RES depends largely on regulations and stimulation measures. This is a matter of EU and national policies. A stable political course with regard to stimulation measures for DG and RES is necessary to encourage serious investment by market parties in additional DG and RES capacity.