1

The Effect of DG on Power Quality in a

Deregulated Environment
I. El-Samahy, Ehab El-Saadany, IEEE Member

the network. A study by the Electric Power Research Institute

Abstract— This paper investigates the effect of the Distributed (EPRI) indicates that by 2010, 25% of the new generation will
Generation (DG) on power quality pointing out its positive and be distributed [2]. Another study by the Natural Gas
negative impacts. To support this argument, simulations are Foundation concluded that this figure could be as high as
achieved on Electromagnetic transients and DC/Power system
computer-aided design (EMTDC/PSCAD), where the results
30% [3].
reveal the effect of DG on power quality. An overview of DG is The introduction of DG to the distribution system will have
presented covering the definition, the different technologies, as a significant impact on the flow of power and voltage
well as the major factors that contribute to the renewed interest conditions at the customers and utility equipment. These
in DG. There are different ways to connect the distributed impacts might be positive or negative depending on the
generation to the utility system. The different ways for interface distribution system operating characteristics and the DG
with the utility system are also exploded. The introduction of DG
to the distribution system will have a significant impact on the
characteristics. Positive impacts include:
flow of power and voltage conditions at the customers and utility 1. Voltage support and improved power quality.
equipment. The positive impacts of the DG are pointed out and 2. Diversification of power sources.
some of the operating conflicts that might arise are discussed. 3. Reduction in transmission and distribution losses.
4. Transmission and distribution capacity release.
Index Terms— Distributed generation, power quality, 5. Improved reliability.
operating conflicts
However, some operating conflicts related to over-current
protection, voltage regulation, power quality problems,
feroresonance and others might result when the distributed
I. INTRODUCTION
generators are to operate in parallel with the utility

E LECTRIC power systems are organized to supply

electricity mainly through the coordinated operation of
large, centrally located power plants connected to a highly
distribution system.
This paper discusses some of the main benefits as well as
the operating conflicts that may arise due to the introduction
meshed transmission network through generator transformers. of DG in the distribution system. It starts with a definition for
The transmission system is used to transport the power which DG in section II. The major factors that led to this renewed
is then passed down through a series of distribution interest for DG are discussed in section III. The main DG
transformers to consumers. technologies and the different ways for interface with the
These central power plants are thermal, nuclear or hydro- utility system are exploded in sections IV and V respectively.
powered and their rating lies in the range of several hundred Some of the operating conflicts and the effect of DG on
MW’s to few GW’s. A shift in the economies of scale recently power quality are addressed in details in sections VI and VII.
took place where smaller power plants with a few dozens of Simulation on EMTDC/PSCAD software is performed to
MW’s, instead of few GW’s, became more economical [1]. study the effect of DG on power quality and the results are
Also, generators with renewable sources as wind or solar shown in section VIII. Finally, the paper is concluded in
energy became more economically and technically feasible. section IX.
This has resulted in the installation of small power plants
connected to the distribution side of the network, close to the II. DEFINITION OF DG
customers and hence referred to as “embedded” or
There is no generally accepted definition of DG in
“distributed” generation (DG). Some times it is also called
literature as confirmed by the International Conference of
“dispersed generation” or “decentralized generation”.
Electricity Distributors (CIRED) in 1999, on the basis of a
Recently, power market liberalization in Europe and North
questionnaire submitted to the member countries [4]. Some
America has resulted in an increase in the number of smaller
countries define distributed generation on the basis of the
power producers participating in the electricity market giving
voltage level at which it is interconnected, whereas others
rise to a renewed interest for distributed generation (DG).
start from the principle that DG is directly supplying
This led to a considerable increase in the proportion of DG in
 2

consumer loads. Other countries define DG through some of B. Customer Perspective

its basic characteristic (e.g. using renewable sources, 1. Improving energy efficiency and reducing green
cogeneration, being non-dispatched). This section shows house-gas emissions through combined heat and
some of the main definitions that appeared in literature for power (CHP) plants and renewable sources.
DG: 2. Improved reliability by having back-up generation.
1. The International Council on Large Electricity 3. Receiving compensation from the utility for making
Systems (CIGRE) defines distributed generation as their generation capacity available to the power
all generation units with a maximum capacity of 50 system in areas with power shortages.
MW to 100 MW, that are usually connected to the
distribution network and that are neither centrally C. Commercial Power Producer
planned nor dispatched [5]. 1. Distributed generators, with their comparatively
2. The IEEE defines DG as the generation of electricity small size and short lead times as well as their
by facilities that are sufficiently smaller than central different technologies, allow players in the electricity
generating plants so as to allow interconnection at market to respond in a flexible way to changing
nearly any point in a power system. market conditions.
3. The International Energy Agency (IEA) defines DG 2. To sell ancillary services such as reactive power and
as a generating plant serving a customer on-site or standby capacity.
providing support to a distribution network, Environmental concerns are the major driving force for the
connected to the grid at distribution-level increasing demand for DG to improve energy efficiency and
voltages[6]. reduce greenhouse-gas emissions through CHP plants or by
4. In [2], a broader definition for DG was given. DG renewable sources. Different estimates suggest that CHP can
was defined by the authors as “an electric power reduce greenhouse-gas emissions from power generation by
source connected directly to the distribution network 20%-30% compared with separate fossil-fired power and
or on the customer site of the meter”. The distinction heating systems [6].
between distribution and transmission networks is
based on the legal definition which is part of the IV. DG TECHNOLOGIES
electricity market regulation. There are various types of distributed generation
technologies ranging from the well established reciprocating
III. WHY DG? engines and gas turbines to more recent types of renewable
The IEA identifies 5 major factors that contribute to the sources such as wind farms and photovoltaic. Emerging
renewed interest in DG [6]: technologies such as fuel cells and micro-turbines are recently
1. Electricity market liberalization. commercialized. DG technologies can generally fall under two
2. Developments in DG technology. main categories [9]:
3. Constraints on the construction of new transmission A. Combined Heat and Power (CHP)
lines.
CHP plants or cogeneration are power plants where either
4. Increased customer demand for highly reliable
electricity is the primary product and heat is used as a
electricity.
byproduct, or where heat is the primary product and
5. Environmental concerns.
electricity is generated as a byproduct. The overall energy
Each of the utility, the customer and the commercial power
efficiency is then increased. Many DG technologies, such as
producer has his own perspective regarding DG [7], [8].
Reciprocating engines, Micro-turbines and Fuel cells can be
A. Utility Perspective used as CHP plants.
1. On-site power supply avoids transmission and B. Renewable Energy Generation
distribution losses.
This refers to distributed generation that uses renewable
2. Increasing the efficiency compared with central energy resources such as the heat and light from the sun, the
generation. wind, falling water, ocean energy and geothermal heat. The
3. Diversification of power sources. main DG technologies falling under this category are wind
4. A possible solution to constraints on the construction turbines, small and micro hydro power, photovoltaic arrays,
of new transmission lines. solar thermal power, and geothermal power.
5. Providing cleaner power by using renewable sources Table I is comparing the main DG technologies used
such as wind and sun. nowadays, including reciprocating engines, gas and micro
6. Better quality of power. turbines, fuel cells, photovoltaic arrays and wind power. The
7. Hedge against uncertain load growth and high market comparison involves the size, efficiency, fuel used, CO2 and
prices. NOx emissions, generation and operating costs, applications,
advantages and drawbacks of each technology.
 3

TABLE I. DG TECHNOLOGIES [2], [6], [10] and [11]

applications with a 2/3 winding pitch to minimize the third

I. INTERFACE TO THE UTILITY SYSTEM harmonic component, or to use a suitable interface
Distribution generators are interconnected with the utility transformer connection with a delta winding that can suppress
to operate in parallel with its distribution system. The main the triplen harmonics.
type of the electrical system interfaces are [8]: B. Asynchronous (Induction) Machines
A. Synchronous Machines Induction generators are induction motors driven slightly
The majority of DG interconnected for parallel operation faster than synchronous speed. They are often started as a
with the utility distribution system are three phase motor using the utility power line. For weak systems, the
synchronous machines. Synchronous generators use DC field prime mover is started and brought to near synchronous speed
for excitation, and hence they can produce both active and before the machine is interconnected. Induction generators are
reactive power. Emergency back-up generators using fossil- typically smaller than 500kW and they are suitable for wind
fuels combustion engines are normally synchronous DG. They are easily interfaced to the utility as no special
machines. The machine can follow any load within its design synchronizing equipment is required.
capability with suitable field control. Besides, the inherent Unlike synchronous generators, induction generators are
inertia allows it to tolerate to any step changes in the load. capable only of producing active power and not reactive
Being capable of producing reactive power, large power. They require reactive power from the power system to
synchronous generators, relative to the utility system capacity, which it is connected to provide excitation. This might affect
might act as voltage regulators to improve the voltage profile the utility voltage and result in a low-voltage problem.
across the distribution feeder to which they are connected. Capacitors are then installed on the generator side to supply
This is considered a power quality advantage in weak systems. the required reactive power to avoid any problems.
However, these generators should be coordinated with the C. Power Electronic Inverters
utility voltage regulators and protection equipment to avoid An inverter is a solid state device that converts DC
any operating conflicts. Some of these conflicts will be electricity to AC electricity at a desired voltage and
discussed in the next section (VI). frequency. DG technologies that generate either dc (wind, fuel
The voltage waveform produces by synchronous cells and photovoltaic) or non-power frequency ac (micro
generators is not always perfect sinusoidal and it might turbines) must use an inverter to interface with the power
contain third order harmonics [12]. This will worsen the system The inverter technology has changed from the early
system power quality. Among the possible solutions for this thyristor-based, line commutated inverters to switched PWM
problem is to design synchronous generators used for DG inverters using insulated gate bipolar transistor (IGBT)
 4

switches. This shift in technology has greatly reduced the fault in the distribution system, the presence of DG might
amount of harmonics injected by these inverters to the utility have a negative impact on the system reliability.
system.
D. Islanding
Power electronic inverters produce power at unity power
factor to allow the full current-carrying capability of the DG relaying might fail to detect that the utility breaker has
switch to be used for delivering active power. When trouble is opened and continue to energize a portion of the feeder
detected, the inverter can be switched off very quickly (in forming what is called an “island”. “Islanding” is defined in
milliseconds) unlike the rotating machines which may require the IEEE standards 929-2000 [12] as a condition in which a
portion of the utility system that contains both load and
several cycles to respond.
distributed resources remains energized while isolated from
the remainder of the utility system. The following problems
II. OPERATING CONFLICTS
might take place:
The introduction of DG to the utility distribution system 1. Low power quality for customers on the island.
might create some operating conflicts such as overcurrent 2. Reclosing.
protection, voltage regulation and others. Some of these 3. Safety concerns of a generator accidentally
conflicts are addressed in this section. energizing the line resulting in injuries to the public
and the utility personnel.
A. Fault Clearing
Most distribution systems are operated in a radial More attention has been paid to detecting islands or
configuration, in which there is one source and the feeders forcing islands to become unstable so that they can be
extend radially from the source [7]. Fault clearing requires detected. The deviations in voltage and frequency from the
then the opening of only one device. With DG, there are expected values, while the DG is connected, can be used for
multiple sources and opening only the utility breaker doesn’t detection. Another solution for anti-islanding is to try to
guarantee fault clearance. reduce the chances that a generation will match the load when
Because of the huge infrastructure of existing distribution an unintentional island is formed.
systems, the DG must adapt to the way the utility works. All E. Ferroresonance
DG protection devices must then detect the fault and separate
Many modern loads are served with underground cable
to allow the normal fault-clearing process to proceed.
which is commonly run from an overhead line, where it is
B. Reclosing nearly universal to apply fuses at the riser pole to protect the
Due to the fact that many faults are temporary, reclosing is overhead line from faults on the cable. The fuses are sized to
common throughout North America which enables the power blow quickly because it is assumed that all cable faults are
to be restored to the customers within seconds. DG must permanent and there is no reason to attempt fuse saving.
disconnect early in the reclose interval to allow time for the Requiring the DG to disconnect at the first sign of trouble
arc to dissipate in order to have a successful reclose [7], [8]. will leave the service transformer isolated without load and
If the DG is still connected upon reclosing, the DG equipment served with an open phase. This is a classical ferroresonance
itself is subject to damage. condition where the capacitance of the cable appears in series
Instantaneous reclose, to improve power quality, increases with the magnetizing inductance of the transformer [8]. This
the conflict where the reclose interval is nominally 0.5 s but results in very irregular high voltages and currents.
can be as short as 0.2 s which is in the range of relaying and F. Storage Needs
opening times for DG breakers. A reclose interval of at least 1
The production forecasting of renewable DG as wind or
s is safer in the presence of DG and many utilities now use 2
solar power plants is difficult because they are supply
or 5 s for the first reclose interval fault to reduce the chances
dependant. In a liberalized environment, power is sold
that the DG will fail to separate in time, but will also result in
through a competitive market governed by rules and deals
reduced power quality.
have to be settled in advance. This means that a DG owner
C. Interference with Relaying should know, in advance, how much power he is capable of
Utility breakers and reclosers are set to see a certain producing every hour of the next day. Storage is then required
distance down the radial feeder referred to as the “reach” of to compensate for this fluctuating output. The main storage
the device and determined by the minimum fault current the devices used are [1], [13]-[15]:
device will detect. DG infeed can reduce the current seen by 1. Batteries.
the relay and hence shortening its reach [7], [8]. High 2. Superconducting magnetic energy storage (SMES).
impedance (low current) faults will go undetected until they 3. Flywheels.
burn into larger faults with more damage to the utility 4. Super capacitors.
equipment and more risk of sustained interruption to 5. Pump storage.
customers. 6. Compressed air energy storage (CAES).
It was mentioned earlier that DG increases the system The term Virtual Power Plants (VPP) stands for an
reliability, however in some circumstances when there is a interesting concept of combining different types of renewable
 5

DG and storage devices to be able to appear on the market as The magnitude and number of changes of voltages
one power plant with a defined hourly output. occurring per unit time are compared with the GE flicker
curve (IEEE Standards 519-1992 [16]) to make sure that they
III. POWER QUALITY ISSUES are below the visibility or irritation threshold levels. If they
The effect of the DG on power quality depends on many are above the threshold levels then mitigation is essential [17].
factors including: Mitigation approaches include reduced voltages starts on
1. Type of DG. induction generators, tighter synchronization for synchronous
2. Its interface with the utility system. DG. Inverters are controlled to limit inrush currents and the
3. The size of the DG unit, its intended mode of change in output levels.
operation and expected output fluctuation.
D. Voltage Sags
4. The total capacity of the DG relative to the system.
5. Size of generation relative to the load at the The ability of a DG to counteract voltage sags depends on
interconnection point. its type and location. Large synchronous generators can help
6. Feeder voltage regulation practice. support the voltage and reduce voltage sags on local facility.
In general, back-up generation and on-site power supply However, impedance of interconnection transformers might
provided by DG improve the system power quality. However, prevent any impact on adjacent loads on the feeder. Inverter-
some issues might arise when distributed generators, with based distributed generators can be controlled to supply
their different types and technologies, are interconnected to reactive power for voltage support during a sag.
the utility distribution system. Among these issues are E. Harmonics
sustained interruptions, voltage regulation, voltage flicker,
voltage sag and harmonics. DG might introduce harmonics in the network to which it
is interconnected. The type and severity will depend on the
A. Sustained Interruptions power converter technology and interconnection
Most of the distributed generators were installed in the configuration. Old thyristor-based, line commutated inverters
network for backup generation, incase of power interruption, used to produce a lot of harmonics, but most new inverter
or to cover for contingencies when part of the delivery system designs are based on IGBTs that use PWM technology and
is out of service. This will significantly improve the system are capable of generating clean output that satisfy the IEEE
reliability. However, not all DG technologies might be capable Standards (512-1992) for harmonics [16].
of supplying the load when the utility system cannot. A Synchronous DG’s can also be a source of harmonics
renewable DG, for example, with an uncontrolled-inverter and (mainly triplen) depending on the design of the generator
lack of storage capacity might not be capable of operating in windings and grounding. Synchronous generators are often
stand-alone mode. specified with a 2/3 pitch for the windings since this produces
When the DG is interconnected in parallel with the utility much less third harmonics than those with other pitches. A
distribution system, some operating conflicts might arise that 2/3 pitch machine, however, has a lower impedance to third
affect the system reliability. An example is the incompatibility harmonic and may cause more harmonic current to flow from
between instantaneous reclosing and DG, or the interference other sources connected in parallel with it.
with utility relaying and reducing the devices’ reach. These The grounding arrangements of the DG and the step-up
two problems were discussed earlier in sections VI-B and C. transformer play a major role here where an interface
transformer connection with a delta winding, that can
B. Voltage Regulation
suppress the triplen harmonics, might be a solution.
Synchronous generators are capable of providing active
and reactive power and, hence, can be used to regulate the IV. SIMULATION RESULTS
voltage in the distribution system to which they are
interconnected. Generator controls are much faster and The previous sections discussed the impact of DG on the
smoother than conventional tap-changing transformers and distribution network to which it is interconnected, pointing
switched capacitor banks. The conflict might, however, arise out its main supporting benefits as well as the operating
due to the interference of these generators with the existing conflicts that might arise with more focusing on power quality
utility voltage regulation equipment. Special communications issues. To support this argument, simulation results are
and control are then required to overcome this conflict and provided in this section to reveal the effect of DG on power
allow these generators to work properly with the utility quality.
voltage regulating equipments. Fig. 1 shows the IEEE 34-bus distribution system, with
DG and local load connected at the end of the feeder. This
C. Voltage Flicker system is simulated on EMTDC/PSCAD software. The
DG may cause voltage flicker as a result of starting a purpose of the simulation is to study the effect of a 1 MW
machine (induction generator) or step change in the DG synchronous DG and a 100 kW inverter-based DG on voltage
output which results in a significant voltage change on the regulation, voltage sag and harmonics.
feeder. Incase of wind and solar energy systems, the output
fluctuates as the wind and sun intensity change.
 6

A. 1 MW Synchronous DG
A 1 MW synchronous DG is interconnected at the end of
the 34-bus radial distribution system; i.e. at node 848. The
utility supply is at the beginning of the main feeder; at node
800. The effect of DG on voltage regulation is studied by
measuring the voltage near the supply (node 802) and that at
the end of the main feeder (node 846), with and without the
DG. The voltage at node 802 near the utility supply is denoted
VG while that at node 846 is denoted Vlast.
The first simulation is done without the DG or the local load.
The waveforms for VG and Vlast are shown in Fig. 2 and 3. The
Fig. 3. The voltage at the end of the feeder without DG.
results are as follows:
VG = 21 kV
Vlast = 17.5 kV
V.R. = 16.7%
When the DG is connected, the voltage at the end of the
feeder is boosted, whereas the voltage near the utility supply
remains the same. This is revealed in Fig. 4 and 5. The new
results are as follows:
VG = 21 kV
Vlast = 19.5 kV
V.R. = 7%

800 Fig. 4. The voltage near utility supply with DG.

802
806
810
808

812
814 DG

850
818 820 822 Local
816
Load
828
824

826 830
CB
852 832 858 864
854
Fig. 5. The voltage at the end of the feeder with DG.
856
834 842 844 846 848
The results significantly show the effect of DG on voltage
888 860
regulation and the improvements that can be achieved. It is
890 now even possible to add another load at the end of the
836 862 838
feeder. This is one of the main supporting benefits of DG that
840 it improves the voltage profile across the distribution feeder
Fig. 1. IEEE 34-bus distribution system with DG. and allows for load growth without the need for new
transmission lines.
A local load now is added as shown in Fig. 1. The voltages
are first measured without DG to see how far the excess load
will worsen the voltage regulation. The voltages waveforms
are given in Fig. 6 and 7. The results are as follows:
VG = 20.5 kV
Vlast = 15.5 kV
V.R. = 24.4%
The DG is now connected at the end of the feeder and the new
voltages are measured to show the capability of the system to
properly supply this excess load after connecting the DG. Fig.
8 and 9 reveal the effect of the DG and the improvements that
Fig. 2. The voltage near utility supply without DG. could be achieved concerning the voltage profile across the
 7

feeder even after adding this excess local load. The results are
as follows:
VG = 21 kV
Vlast = 18 kV
V.R. = 14.3%
The effect of the synchronous DG on voltage sag is now
studied by applying a fault at t=5 seconds for a duration of
0.05 seconds and investigating the voltage at the end of the
feeder (near the DG) in both cases; with and without the DG.
The waveforms of the voltages for both cases are shown in
Fig. 10 and 11. Without the DG, the voltage sag is 62%,
whereas when the DG is connected an improvement takes Fig. 9. The voltage at the end of the feeder with excess load and with DG.
place with a voltage sag equals to 67%.

Fig. 10. Voltage sag without DG.

Fig. 6. The voltage near utility supply with excess load and without DG.

Fig. 11. Voltage sag with DG.

Fig. 7. The voltage at the end of the feeder with excess load and without DG. B. 100 kW Inverter-Based DG
The effect of inverter-based DG on the harmonics in the
system is studied in this section by introducing some non-
linear loads to the distribution system, then calculating the
total harmonic distortion (THD) for both the voltage and the
current in both cases; with and without the DG.
Without the DG, the voltage THD is 4.3% while the
current THD is found to be 12.8%. When the inverter-based
DG is interconnected to the network, the voltage THD
remained the same while the current THD increased to 14.5%.
This completely supports the fact that inverter-based DG
introduces or increases the harmonics in the system to which
Fig. 8. The voltage near utility supply with excess load and with DG.
it is connected. It is worth mentioning here that the severity of
the introduced harmonics depends on the technology of the
power electronic inverter. This was clearly discussed earlier in
section VII-E.
The effect of the inverter-based DG on voltage sag is
studied by applying a fault at t=1 second for a duration of
 8

0.05 seconds and examining the voltage at the end of the

feeder (near the DG) in both cases; with and without the DG.
The results shown in Fig. 12 and 13 clearly support the fact
that the inverter-based DG doesn’t affect the voltage
regulation or sag, unless it is controlled to provide reactive
power. The voltage sag is the same is both cases; with and
without the inverter-based DG and it is equal to 59%.

V. CONCLUSION
DG has several system support benefits which include
voltage support, improved power quality and reliability, loss Fig. 13. Voltage sag with the inverter-based DG
reduction, and transmission and distribution capacity release.
However, distribution system designs and operation practices VI. REFERENCES
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Fig. 12. Voltage sag without the inverter-based DG.