Decentralized Poly-generation of Energy: Basic Concepts - Design for Micro-Combined Cooling, Heating and Power Systems - page 43

Usually, distributed generation uses low power generation units situated with the
consumer or in his proximity. These units are installed so as to cover all of the
consumer

s needs, to ensure an economical functioning of the electric distribution
grid, or to satisfy both conditions. Distributed generation complements the tradi-
tional centralized generation and distribution of electric energy. It ensures a
favorable answer (as regards the cost of capital) to the increase in the energy
demand, avoids the installation of supplementary transport and distribution
capacities, localizes the generation of electric energy where it is necessary and has
the

'

s proximity.
Technological developments, the progressive rise of distributed generation, and
the increasing need to manage the system close to consumption points all require a
shift towards a more decentralized electricity system. Therefore, decentralized and
centralized generation can coexist; smart grid development will enhance their
complementarities. In this transition, a new

flexibility of delivering it to the grid in the consumer '

, pro-
ducing and consuming his/her own electricity. By covering on-site part of the

gure appeared: the “ prosumer ”

nal

user s electricity needs, PV systems will generate new opportunities. Such decen-

tralized electricity generation will have to be better incorporated in future strategies.
Small-scale power producers are also giving rise to new ownership structures
and business models, some of which directly compete with conventional utilities.
“

'

More than 3 million households have started producing their own electricity with
solar PV ” , says Eurelectric, while 133 “ bio-villages ” have emerged in Germany
since 2000, generating more than 50 % of their electricity and heat from bioenergy
resources.
In Italy, at the end of 2011, PV [ 16 ] already covered 5 % of the electricity
demand, and more than 10 % of the peak demand. In Bavaria, a federal state in
southern Germany, the PV installed capacity amounts to 600 W per inhabitant, or
three panels per capita. In around 15 regions in the EU, PV covers on a yearly basis
close to 10 % of the electricity demand; in Extremadura, a region of Spain, this
amount to more than 18 %.
Market trends across Europe indicate that liberalization is bearing fruit, with
wholesale markets becoming more competitive and customers increasingly bene-

fiting from new types of products and energy-related services.
Customers use today, an ever larger number of electronic appliances (TV,
computers, tablets, smart phones), heating systems (thermostats, air conditioning,
heat pumps), green goods (washing and drying machines, dishwashers, ovens,
refrigerators), for reasons linked to comfort, entertainment, environment, and
security. This increase of appliances in and around the home combined with the
progressive introduction of new loads such as heat pumps and electric vehicles is
likely to cause electricity demand from households to rise. At the same time, new
technologies such as micro-CHP and solar photovoltaic have made power generation
at household level a real economic possibility. Customers with such installations no
longer only consume energy, but produce electricity as well. This is the way cus-
tomers will more and more bene t from new services, be able to save on their energy

bill and potentially become electricity producers themselves. But these develop-
ments also pose new challenges to the electricity industry, which has to cope with a