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Lower Transmission Losses Makes Decentralized Power Generation More Feasible than Centralized

Decentralized generation increases electric grid reliability and efficiency

 
PRLog - Oct. 21, 2011 - Frost & Sullivan: Lower Transmission Losses Makes Decentralized Power Generation More Feasible than Centralized Generation

Decentralized generation increases electric grid reliability and efficiency

MOUNTAIN VIEW, Calif. – Oct. 21, 2011 – Decentralized (distributed) power generation, with its reduced electric grid transmission and distribution losses, higher grid reliability, and lower greenhouse gas (GHG) emissions, is poised to partially replace large central power plants. Distributed generation (DG) could eliminate, or at least reduce, the instances of black outs that are associated with current electric grids relying only on big central power plants.

New analysis from Frost & Sullivan’s (http://www.frost.com) Decentralized Power Generation: Technology Penetration and Roadmapping research finds that DG units are able to significantly reduce transmission losses by generating energy near its end use. Small power generating units distributed throughout the city electric grid will be able to partly cover energy demands and ease the load on the main transmission lines between the central power plant and distributing stations.

If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at britni.myers@frost.com, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.

Decentralized power generators are very important elements of the future smart grid networks as they enable the grid to operate in an “islandic mode,” wherein they deliver electricity, and sometimes heat, to the nearby consumers when the main power plant fails. DG technologies not only benefit the utilities directly, but also end-users.

“Building dwellers are increasingly realizing the merit of adopting small gas engines or micro turbines in the near term and fuel cells in the long term to generate domestic combined heat and power (CHP),” said Technical Insights Renewable Energy Research Analyst Tomasz Kaminski. “Besides domestic CHP units, roof-mounted small wind turbines and photovoltaic (PV) panels will also be popular among end-users, as they allow them to sell excess energy produced by their generation units back to the grid.”

Decentralized power generating units (microturbines, solid oxide fuel cells) are often more efficient than central power plants and offer savings on primary fossil fuels usage. The adoption of renewable energy-based DG systems, such as small wind, PV, solar thermal, and proton exchange membrane (PEM) fuel cells, will further mitigate utilities dependence on fossil fuels and, thereby, the emission of GHG.

Currently, solar thermal heating is the most used DG technology, while electricity storage technologies are expected to be the most popular in seven to nine years. However, before the mass introduction of DG technologies, developers have to resolve the issue of their integration with the main electric grid with the help of electric energy storage systems.

Most DG units rely on intermittent energy sources, such as wind or solar, which could create voltage and frequency fluctuations in the main electric grid. To remedy this issue, utilities have to deploy smart grids and advanced electricity storage and managing systems.

Industry participants must also strategize to cover for the emergence of some technologies such as fuel cells and PV, as their nascence makes them expensive. Once their performance and production scale increases, they will be priced lower and will not need government subsidies.

“Until novel renewable energy sources achieve cost efficiency, power generators have to depend on proven DG technologies, such as microturbines and gas engines,” said Kaminski. “However, as these two systems rely on natural gas, they are not likely to find uptake after 10 to 15 years due to the rising profiles of green technologies.”

Developers can stave off most of these challenges by refining their technologies. They have to make the most of government research financing programs and enlist the cooperation of companies with research institutions. These efforts and DG’s inherent benefits are expected to result in the market for decentralized power generating technologies tripling by 2015, with further expansions anticipated in the long term.

Decentralized Power Generation: Technology Penetration and Roadmapping is part of the Technical Insights subscription, which also includes research in the following markets: European Power Generation Sector: Overview of EU-27, Norway, Switzerland and Iceland; Biofuel Enzymes--Driving Growth Through Innovation; Biofuels: Ethanol Special Report; U.S. Renewable Energy Market - Utility Level Analysis; and Advances in Smart Grids Technologies. Further, this research service includes detailed technology analysis and industry trends evaluated following extensive interviews with market participants.

Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters and research services.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Decentralized Power Generation: Technology Penetration and Roadmapping
D2C5

Contact:
Britni Myers
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: britni.myers@frost.com

http://www.frost.com
http://www.technicalinsights.frost.com

# # #

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

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Tags:transmission, decentralized, Power, generation, centralized, distributed, electric, grid, distribution, Greenhouse, Gas
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