Enhancement of sustainable electricity supply through improvements of the regulatory framework of the distribution network for distributed generation (DG-GRID)

Distributed generation (DG) is the generation of electricity from a multitude of small energy sources, reducing the distance over which the energy needs to be transported. . DG-Grid focussed on four main objectives. The first was to review the current EU economic and regulatory frameworks for electricity networks and markets and identify how to remove the barriers to the use of renewable energy sources (RES) and combined heat and power (CHP). The second was to analyse interaction between regulations, the volume of RES and CHP used and innovative networks. Thirdly, the project set out to assess the impact of RES and CHP market penetration by looking at changes in revenue and expenditure flows, developing business models for an economically viable grid system and a cost/benefit analysis of different regulatory designs. Finally, the project sought to develop guidelines for the network planning, regulation and improved integration of DGs.