Distributed generation
Distributed generation (DG) or Embedded Generation (EG) is usually defined as electric generation connected to the distribution level of the transmission and distribution grid usually located at or near the intended place of use.
The potential advantages offered by DG in the Victorian electricity market can include the following:
- lower greenhouse gas emissions from using less greenhouse intensive fuels
- reduced transmission and distribution losses, leading to economic benefits and avoided greenhouse gas emissions
- reduced network costs with avoided and deferred network upgrades
- improved security of supply, resulting from a larger number of smaller units using varied energy sources supplying electricity demand
- deferment of electricity transmission upgrades
- expanded energy resource base and capacity.
Sustainability Victoria in 2007 engaged McLennan Magasanik Associates to conduct preliminary economic modelling of the electricity market in order to evaluate the potential benefits stemming from greater uptake of DG. The model was designed to demonstrate the potential economic benefits from changes to regulations affecting the electricity market and improved fuel supply arrangements.
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Top | Last updated 19/03/2009
