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Distributed Generation-Integrated Value

Distributed generation (DG) is the name given for generating power at the point of consumption. With DG, electricity is produced at many small, dispersed generating sites, rather than at large, centralized, traditional power plants. Some of the most recognizable distributed resources include solar, wind, and small gas turbines.

The existing DG incentive programs, such as solar, were developed when little DG existed and the technologies were very expensive and unreliable. The limited impact for the small numbers of those older technologies was easily absorbed in the power system so full recovery was not an issue.

Technologies for producing energy at the site have evolved, are becoming cost competitive, and more reliable. The result is more systems on the electrical grid increasing their impacts. The need to subsidize their growth is changing. With this advancement in technology and more competitive costs, a key question being asked today is: What is the true value of distributed generation?

TVA Forms Stakeholder Group

For the first time in the Valley region, TVA, with the help of interested local power companies and other stakeholders, has launched an initiative to help determine the value of distributed generation (DG). This initiative, called Distributed Generation Integrated Value (DG-IV), will develop a methodology to gauge the value DG provides to the electric grid and the benefit the distribution grid provides to the DG owner.

The DG-IV process is expected to take place through the end of 2014. Implementation of new programs developed using this methodology for residential and small commercial operations is anticipated in 2016.

Information shared with the stakeholder group will be posted here.




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