Distributed Generation

Distributed Generation is localized electricity generation and/or co-generation (electricity generation and use of the heat as a by-product also known as CHP). This decentralized, distributed electricity generation approach makes the overall electric power system more flexible and secure. Such resources promise to lower the cost of electricity, make electrical generation cleaner and more energy efficient, reduce transmission and distribution line loss and congestion, and improve power reliability and quality, among other benefits.

Installation Considerations – Scope, Contracting & Schedule

Many equipment suppliers in the Distributed Generation industry offer pre-packaged equipment that can be readily installed and integrated into existing facilities. However, the equipment suppliers rarely provide environmental, engineering & design, construction management, construction & start-up services, so the proponent must frequently engage specialist firms to perform these tasks, e.g. the project environmental applications; foundations and building; mechanical piping and auxiliary systems, electrical and control systems.

Any proponent has several project-execution contracting choices, depending upon the size, type and complexities of the project, including:

• Design/Build (D/B): One contractor has the single responsibility for design and construction. D/B is also known as engineer- procure- construct (EPC). This approach may be taken for a segment of a larger project, or an entire project.
• Design/Build/Finance or Finance/Design/Build (DBF or FDB): One contractor has the single responsibility for design, construction and financing of the project.
• Build/Own/Operate (BOO): This is really the privatization of a project—the owner takes complete responsibility for designing, building, owning and operating a facility, typically in the public sector.

Distributed Generation project schedules can vary according to the project development time, environmental assessment time, the size and complexity, the type equipment and configuration, financing aspects, type of electrical interconnection, and method of project execution.

General rules-of-thumb for various types of projects, not including the project development, financing and environmental approvals, include:

• Gas Turbine and Combined-Cycle Plants – 1 to 3 years
• Reciprocating Engines – 1 to 2 years
• Fuel Cells – < 1 year
• Photo-Voltaic – < 1-year
• MicroTurbines – < 1-year

Please click here for a short list of commonly asked questions & answers.