Ten-point action plan for reducing barriers to distributed generation A. Reduce technical barriers (1) Adopt uniform technical standards for interconnecting distributed power to the grid. (2) Adopt testing and certification procedures for interconnection equipment. (3) Accelerate development of distributed power control technology and systems. B. Reduce business practice barriers (4) Adopt standard commercial practices for any required utility review of interconnection. (5) Establish standard business terms for interconnection agreements. (6) Develop tools for utilities to assess the value and impact of distributed power at any point on the grid. C. Reduce regulatory barriers (7) Develop new regulatory principles compatible with distributed power choices in both competitive and utility markets. (8) Adopt regulatory tariffs and utility incentives to fit the new distributed power model. (9) Establish expedited dispute resolution processes for distributed generation project proposals. (10) Define the conditions necessary for a right to interconnect. The production of electrical energy from a customer’s site has significant economic effects on the transmission and distribution systems of the electric utility provider. Small drop-and-run power plants such as micro turbines, fuel cells, solar, wind, reciprocating engines, and gas turbines can provide substantial additional power to meet the provider’s peak loads. The hurdles to DG continue to be the resolution of important policy issues including interconnection interfaces, standby charges, and stranded costs, sitting and permitting for the DG. The main technical interconnection question today is how to interface DG energy resources with existing electric power systems in a reliable, safe, and cost-effective manner. Figure 1 illustrates the complexity and the interaction between DG and the interconnected electric power system. The four areas are as follows: 1. Isolated, no grid source 2. Isolated with automatic transfer 3. Grid interconnection, no power export 4. Grid interconnection, bi-directional power flow Figure 1. Complexity and interaction between DG and interconnected electric power system Figure 2 .is a typical single line diagram of an interconnection. The interconnection concerns from the electric utility point of view, as illustrated by recent surveys, include the reliability of the existing grid, the safety of electric power system personnel, and quality control. The key to achieving a working implementation of DG will be the introduction of universal technical standards that permit standardized grid interconnection while maintaining power system stability and worker safety. In the winter of 1999, the Institute of Electrical and Electronic Engineers (IEEE) began devising a universal interconnection standard, currently called IEEE P1547. Its purpose is to set forth a uniform standard for interconnection of distributed resources 10 Mva or smaller with electric power systems. The requirements relevant to performance, operation, testing, safety, and maintenance of the interconnection are also included in the emerging standard. PURPOSE A typical interconnection standard for DG establishes the criteria and requirements for the interconnection of distributed resources with distribution systems. It may conform to the emerging IEEE P1547 interconnection Standard, now a work in progress and close to completion. Specifically this document describes the design and testing requirements of generator interconnection to the electric utility distribution system. The requirements established in this document cover a broad spectrum of interests. The addition of a distributed resource to the distribution system may change the system and its response. Attaining a technically sound and robust interconnection among distributed resources and the distribution system mandates diligence on the part of everyone involved in the inter-connection, including designers, manufacturers, users, owners, and operators of both electric power systems as part of the interconnection requirements. This requirement needs to be understood cooperatively among the aforementioned groups and met. LIMITATIONS The criteria and requirements are applicable to all distributed resource technologies and to the primary and secondary voltages of the electric Power systems. Installation of DGs on the radial primary and secondary electric power systems is the main emphasis of the IEEE. The requirements may be met at the Point of Common Coupling (PCC), although the location of protective devices may not be at the PCC. GENERAL INTERCONNECTION REQUIREMENTS When a customer desires to establish a parallel interconnection with the utility, there are formal procedures to follow that will ensure a sound technical basis for the proposed interconnection these technical and application procedures are summarized in the following table. 1. Planning for the interconnection asset 2. Designing the interconnection asset 3. Constructing the interconnection asset according to the planning and design drawings agreed to during the application phase of the project. 4. Verification testing and commissioning testing of the completed construction phase. 5. Initial operation of the parallel interconnection, operations training, and recording the performance of the interconnection system. 6. Operation and maintenance of the interconnection asset for the life of the asset. Any customer may operate 60 Hertz, three phase or single phase generating equipment in parallel with an electric utility system in accordance with the utility’s interconnection and operating agreement, provided the equipment of the customer meets or exceeds the requirements of the utility.