Title:
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Quantifying the financial and carbon emissions impacts of distributed generation from the perspective of different stakeholders
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The evolving role of distributed generation (OG) in the electricity network is a commonly
debated topic in academic, political and industrial fields. A range of benefits is noted, including
the potential to support electricity demand at peak times and thereby reduce investment in
other aspects of the electricity system. As market structures develop and the aggregator
industry grows at a high pace, the need to quantify the impact of the increase in DG is vital.
This project addresses key research objectives surrounding the various impacts of OG
projects to DG owners and network operators - at transmission and distribution level. The
project focused on two particular areas: the logistical and financial impacts for the DG owners
and the longer term environmental impact of extended DG use for network operators, in the
form of network investment deferral and avoidance. The project has focused on standby
generators, rather than a number of other DG technologies, due to their prevalence globally
and their current high usage level in ancillary service markets and within commercial properties
across the UK and worldwide, including the M&S estate.
Although often considered a quick and easy change to the network, the logistical impact
and prerequisites for running DG projects for grid support has not been investigated on a broad
scale. This thesis identifies the process that a company wishing to use DG equipment for grid
support must go through in order to bring a project from initiation to implementation. The
research has identified financial benefits of running standby generators for grid support
inherent in the electricity pricing structure of up to 14p/kWh, available in some regions.
However, upfront investment and time needed to implement a project can reduce project
viability and increase payback periods.
Network investment deferral is a well evaluated concept from a financial perspective, but
this thesis shows that it is important to consider the carbon emissions from network investment
and its deferral. Proxies are developed to convert financial investment in the electricity network
into carbon emissions, based on an existing life cycle assessment survey of the GB electricity
network. It is shown that, depending on the region, network investment can represent up to
7kgC02 per 1GBP of investment. These proxies are applied to the 2015-2023 investment
planning timeframe in the GB network, RII0-ED1, to show that RIIO investment could represent
10,000tC02 in just one DNO region.
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