Implications of on-site distributed generation for commercial/industrial facilities

Next-generation distributed generation (DG) is poised to become a key element in our energy future. Recognizing the increased need for a higher reliability energy system and a cleaner environment, This work presents a technique that helps to identify the impact of grid-connected DG on the reliability of on-site electric power. This analysis shows the optimal DG mix at various facility outage costs with and without an emission restriction. The impact of varying the grid reliability and the capital costs of DG units on the decision to invest in backup power is discussed. The break-even costs of microturbines are also estimated at various facility outage costs and microturbine forced outage levels.