Towards a dispersed electrical system: Challenges to the grid

• Published in: Energy policy 1991, Vol.19 (1), p.24-34
• Main Authors: Summerton, Jane, Bradshaw, Ted K.
• Format: Article
• Language: English
• Subjects: Applied sciences; California; Economic data; Electric energy; Electric power; Electric utilities; Electricity; Electricity distribution; Electricity supply; Energy; Energy economics; Exact sciences and technology; Factors; General, economic and professional studies; Grid; Power supply; Public policy; Statistical data; U.S.A
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/0301-4215(91)90074-X

A number of countries are currently restructuring their regulations to accommodate dispersed electrical production, resulting in rapid organizational change in grid systems. Dispersed electrical generation in enterpreneurial, industrial and municipal projects appears to be gaining legitimacy and experience. In California, new suppliers of electricity have delivered some 5 800 MW of new capacity to utilities, representing almost 15% of total state electrical capacity. California's policy in stimulating non-utility power has posed four critical policy issues: how to manage oversupply, how to set rates based on avoided cost, how to accommodate extensive self-supply from cogeneration, and how to respond to pressures for greater access to transmission lines for ‘wheeling’ of power. Events in California illustrate specific policy approaches and lessons learned that are potentially valuable for others interested in stimulating dispersed electrical supply in traditional grid systems. Several issues remain, however, unresolved.