A Review on Establishment of Distributed Generation in Iran

Recent developments in the electric power and power supply industries have raised a great deal of interest in distributed power generation (DG). This paper presents a review of global distributed generation concisely and then for Iran. Distributed generation, for the moment loosely defined as small-scale electricity generation, is a fairly new concept in the economics literature about electricity markets, but the idea behind it is not new at all. DG will have impacts on distribution networks. As one of today’s busy Federal facility or energy managers, the reader might seek ways to solve problems such as high energy costs or low electric power reliability at facilities. Distributed generation is a solution for the production of electricity near the consumption place. DG systems may be used as local generation units, with the ability to participate in energy and reserve markets. Finally, in distribution system planning and expansion, especially where demand growth is low and the system is operating at its marginal resources, DG installations can be a practicable solution to defer upgrades as well. This paper aims to introduce DG types and technologies and the related profits and weaknesses in the word with a focus on the situation of construction of DG in Iran and governmental motivations for the investors.