INTRODUCTION
Executive Summary
The rise of distributed energy is buoyed by:
The growing gap between wholesale and retail electricity rates
System value of strategic placement of distributed energy projects across the grid
Customer desire for more control over their power
CHAPTER 1
Transformation Drivers
The global electric power system is rapidly moving toward an integrated and hybridized network that combines the best of existing and new technologies to provide reliable, affordable, and sustainable electric power.
CHAPTER 2
Distributed Energy
Along with decentralization, digitization and decarbonization, we’ve identified other motivating factors for accelerated use of distributed energy today, that are making a big impact on the global power system.
CHAPTER 3
Blockchain
Unleashing the full potential of microgrids requires reliable information technology (IT) systems. Blockchain technology presents an exciting opportunity for decentralized energy environments to enable, validate, record and settle energy transactions in real-time.
CHAPTER 4
Distributed Energy Applications
Distributed energy systems are used for a variety of reasons, and the primary purpose depends upon the application. In this section, the focus is applications for microgrid systems. Microgrids are digitally-controlled hybrid distributed energy systems that have the ability to “island” or disconnect from the utility grid.
CHAPTER 5
Lessons Learned
GE Energy Consulting has been at the forefront of designing microgrids and studying the technical and economic feasibility of integrating microgrids into existing power systems. While individual microgrid studies can provide various insights specific to the unique application examined, there are common factors that span our work that can and should be considered.
CHAPTER 6
Making the Business Case
An important part of the process of developing a DER is making the business case to decision makers. This involves several key issues including business models, ownership issues, governance structure, financial analysis, and social benefit/cost analysis. This section will discuss the important elements of making the business case, with a specific focus on microgrid systems.
The global power system is rapidly moving from an electricity system built on traditional central generation with one-way flow of electricity to an integrated and hybridized network. These developing networks combine the most efficient central generation and new technologies to provide reliable, affordable, and sustainable electric power for factories, businesses, and communities around the world.
GE has been a long-time advocate of enabling smaller, decentralized power systems. This is due, in part, to GE’s leadership in developing new and more efficient distributed energy technologies. Today, GE provides a wide range of distributed energy products and services to lead this global megatrend.
As a global company serving over 180 countries, we see ourselves as the world’s electricity company. And we don’t just sell machines, or software, or services: we deliver outcomes — like well-lit classrooms and automated factories of the future. We feel a responsibility to help power schools, factories, businesses, and homes around the world. Our focus will remain on being a world energy innovation leader by providing technology, solutions, and services across the entire electricity value chain from the point of generation to final consumption.