DISTRIBUTED UTILITY: AN OVERVIEW OF R & D ISSUES AND OPERATION CONCERNS

Motivated by the increasing competitive thrust and power quality concerns, utility system planners and researchers have recently introduced the concept of "distributed utility" (DU) as a new method of utility planning and operation. This visionary idea is defined by a utility model where the generation capacity from central power stations is complemented by the capacity from a combination of smaller power generation and storage alternatives distributed throughout the utility service territory. The planning and implementation procedures for distributed utility are still at the embryonic stage of development. The results of the initial case studies, however, appear to be quite encouraging. Therefore, more research will be needed to identify and resolve areas of economic and operation uncertainty before elements of distributed utility can be considered in the utility planning process.