Increasingly, electricity is generated outside of big power plants, for example through solar panels, small wind turbines or small hydro, and usually close to where it is consumed. When more energy is generated than consumed, surplus energy is fed back into the existing power network where it can negatively affect grid stability. Unlike with traditional power generation, these additional resources are often invisible to grid operators, who are unable to predict and control when energy is fed back into the network.
This white paper explores the driving factors behind decentralized power generation. It explores future grid models and technology solutions that will allow grid operators to ensure grid stability and ensure cleaner, affordable and reliable power. It also provides recommendations to industry leaders, policy makers and the IEC community.
The white paper was prepared by the IEC Market Strategy Board (MSB) advanced network operation project team with major contributions from Tokyo Electric Power Company (TEPCO) and project partner GridOptimize. Supporting contributions came from Huawei Technologies, FZSONICK SA, Waseda University, Toshiba Energy Systems & Solutions, and State Grid Corporation of China (SGCC).