Case Study about System Costs of Distribution areas
Executive Summary: The promotion of the use of renewable energy sources (RES) and combined heat and power (CHP) at European level has led to increasing penetration levels of distributed generation (DG). Work Package 4 of the IMPROGRES project aims at computing the economic impact that the integration of growing shares of DG in several areas with high potential for the installation of this type of generation may have on overall system costs in general and each specific cost component related to the supply of electricity in particular. The European Electricity Directive (European Communities, 2003) defines DG as generation plants connected to the distribution systems. Report D5, corresponding to the work developed within WP4, has first defined a suitable methodology to compute the impact of DG on system costs.
Introduction: The promotion of the use of renewable energy sources (RES) and combined heat and power (CHP) at European level has led to increasing penetration levels of distributed generation (DG). Work Package 4 of the IMPROGRES project aims at computing the economic impact that the integration of growing shares of DG in several areas with high potential for the installation of this type of generation may have on overall system costs in general and each specific cost component related to the supply of electricity in particular. The European Electricity Directive (European Communities, 2003) defines DG as generation plants connected to the distribution systems. Policies of promotion of renewables prompted by an increasing awareness of the impact that the production of energy may have on the environment have resulted in a significant increase in the amount of the DG installed in most European countries in recent years.
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