Barriers to Distributed Power

Abstract

This article focuses on cases where barriers to distributed power
are present. It offers the following findings about current restrictions to
interconnection of DG power generation projects.
• A variety of technical, business practice, and regulatory barriers
discourage interconnection in the US domestic market.
• These barriers sometimes prevent distributed generation
projects from being developed.
• The barriers exist for all distributed-generation technologies and
in all regions of the country.
• Lengthy approval processes, project-specific equipment require-
ments, or high standard fees are particularly severe for smaller
distributed generation projects.
• Many barriers in today’s marketplace occur because utilities
have not previously dealt with small-project or customer-genera-
tor interconnection requests.
• There is no national consensus on technical standards for con-
necting equipment, necessary insurance, reasonable charges for
activities related to connection, or agreement on appropriate
charges or payments for distributed generation,
• Utilities often have the flexibility to remove or lessen barriers.

• Distributed generation project proponents faced with technical
requirements, fees, or other burdensome barriers are often able
to get those barriers removed or lessened by protesting to the
utility, to the utility’s regulatory agency, or to other public agen-
cies. However, this usually requires considerable time, effort,
and resources.
• Official judicial or regulatory appeals were often seen as too
costly for relatively small-scale distributed generation projects.
• Distributed generation project proponents frequently felt that
existing rules did not give them appropriate credit for the contri-
butions they make to meeting power demand, reducing trans-
mission losses, or improving environmental quality.