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Publication Title | Distributed vs. centralized electricity generation: are we witnessing a change of paradigm? An introduction to distributed generation

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Distributed vs. centralized electricity generation: are we witnessing a change of paradigm?

An introduction to distributed generation

(HEC Paris)

Jeremi Martin

Under the supervision of Antoine Hyafil, Dean of the Energy Track at HEC Paris

May 2009

Abstract:

In this paper we study the reason for the current interest in distributed generation and the challenges to be faced while increasing its share in the electricity generation mix. We decided not put any restriction on the technologies used or plant size in the definition of distributed generation and based our research on the definition putting the emphasis on the connection to the distribution network and the proximity to the consumption point. We first describe the centralized generation paradigm to show that its failure to provide answers for niche generation markets combined with both electricity deregulation and the more stringent environmental constraints paved the way an increasing share of distributed generation over the past years. We then show that to be a credible alternative generation paradigm, distributed generation will have to overcome significant technical, economic, regulatory and environmental hurdles.

Keywords: distributed generation, decentralized energy production, cogeneration

Contact details: martinjeremie@hotmail.com

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