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2 Introduction and Background 2.1 Distributed Generation Resources in California 2.1.1 Defining Distributed Generation The definition of what constitutes a distributed generation (DG) resource has evolved over time. Generally, DG resources are considered to be “small scale electric generating technologies installed at, or in close proximity to, the end-user's location.”1 Functionally, DG facilities are interconnected on the distribution system side of the electricity system rather than at the transmission side. DG systems tend to be sized to displace electricity demand for the end user, but can include occasional export of electricity to the grid. Common DG technologies include solar photovoltaic (PV) systems, small-scale wind turbines, fossil-fueled as well as biogas- fueled2 internal combustion (IC) engines, microturbines, small-scale gas turbines, and fuel cells. 2.1.2 Historical and Current Status of DG in California Due to changes in DG definitions, it is difficult to clearly identify how much growth has occurred in DG systems in California over the past two decades. Estimates of DG systems installed and currently operating in California range from 900 MW to over 8,000 MW.3 Nonetheless, California energy policies have unmistakably indicated interest in continued development of DG resources. The Joint Agency Energy Action Plan, first adopted on May 8, 2003,4 identifies DG as a preferred resource in the Loading Order. In 2007, the California Energy Commission (CEC) set a goal for DG and cogeneration resources to help meet 25% of California’s peak electricity needs by 2020.5 Similarly, the 2009 Integrated Energy Policy Report identifies the need for expansion of DG resources in order to help address greenhouse gas 1 2 4 5 California Public Utilities Commission Decision (D.)99-10-065, 1999. Biogas refers to gas produced from the biological breakdown of organic matter occurring in landfills, wastewater treatment facilities, food processing plants and ponds (or lagoons) that store animal wastes. 3 2010, pgs. 3-6 to 3-9. Itron, Inc., Impacts of Distributed Generation, prepared for the California Public Utilities Commission, January State of California Energy Action Plan, adopted, May 8, 2003, pg. 2. California Energy Commission, Distributed Generation and Cogeneration Policy Roadmap for California, CEC- 500-2007-021, March 2007, pg. 3. Itron, Inc. 2-1 Introduction and BackgroundPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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