Integrated modelling review - Modelling Distributed Energy Resources in Energy Service Networks - page 15

Local emission problems in urban areas can be directly addressed by using
novel technologies such as plug-in hybrid electric vehicles (PHEVs) [64,65];

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Increased presence and preference for a specific DER technology might impact
the development of local fuel supply infrastructures [66];

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Embedded generation availability can reduce, to a certain extent, both depen-
dency and vulnerability of the electrical distribution system from the effects of
congestion in power lines [67];

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The adoption of DER alternatives can defer investments in substations, network
reinforcement and large generation plant installation, options which generally
have a longer period of return on investment since they are capital intensive
[60,68];

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Electrical network reliability and power quality conditions might benefit from
the connection of local resources to the electric grid [69,70].

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The above points can be encapsulated by summarising that the electrical power
system needs to accomplish many tasks before it can fulfil environmental compli-
ance and energy conservation agendas. It is clear that there is much work to be
done. All these issues arise since, traditionally, distribution networks have not always
been the focus of operational effectiveness [28]. This is why stakeholders can benefit
from the information obtained by adding new energy resources with real-time mon-
itoring devices into the network architecture [71]. Hence, the increased presence of
DER technology has the potential to transform the present network into a smarter
grid. A smart-grid is defined as 'an integrated solution of technologies driving incre-
mental benefits in capital expenditures, operation and maintenance expenses, and
customer and societal benefits' [19].
A paradigm shift towards a more intelligent grid will change the way utilities
look at disperse technologies that aid them in enabling both strategic and operational
processes, but furthermore the interaction between different domains of the power
system will increase substantially as Figure 2.1 shows. For instance, some publica-
tions have already proposed to tackle the impacts of DERs on the infrastructures by
applying a supply chain network perspective [72,73]. Hence, it is suggested opera-
tors could benefit and become more effective by applying similar optimisation and
control principles to the ones used in process system engineering. In conclusion,
this means that the grid we know today requires innovative approaches to meet the
challenges DERs create [74,75].

2.1.2 Impacts of cogeneration technology on electric networks
So far combined heat and power (CHP) technology has mainly been installed at
industrial sites since there they can utilise the power and heat generated. But lately,
it has matured to such a degree that similar small-scale devices ( e.g. micro-CHP)
are nowadays available in the market as boiler substitutes for domestic and com-
mercial consumers [76]. Aside from improving fuel conversion efficiency, some
technical benefits that CHP might bring to electrical networks are savings in power
loss delivery as well as load reduction during peak times [77]. As a consequence,
cogeneration devices are meant to enter the heat market in urban dwellings where