Full Title: Value of the Grid to DG Customers
Author(s): IEE Issue Brief
Publisher(s): IEE Issue Brief
Publication Date: September 1, 2013
Full Text: Download Resource
Description (excerpt):
This paper describes how a DG customer (or a micro grid) that is connected to the host utility’s distribution system 24/7 utilizes grid services on a continuous, ongoing basis. The point is to recognize the value of these grid services and to develop a methodology for the DG customer to pay for using the services. The utility’s cost of providing grid services consists of at least four components – the typical fixed costs associated with: (i) transmission, (ii) distribution, (iii) generation capacity, and (iv) the costs of ancillary and balancing services that the grid provides throughout the day for the DG customer.