Developing a Method to Account for Avoided Grid Losses from Decentralized Generation: the EU Case

Abstract

Decentralized generation is often connected to the distribution grid and consumed by end-users in geographical proximity. Compared to large centralized power plants supplying electricity that flows down the voltage chain in a top-down manner, decentralized generation can avoid grid losses and save primary energy (PE). This paper developed and demonstrated a generic method to account for avoided grid losses and PE savings from decentralized generation, using the EU as the case-region. The method can serve as an easy tool to support the discussion and decision-making process regarding a technology choice between centralized and decentralized generation. Based on this method, we estimated that for each MWh of electricity produced from decentralized generation in the EU, it saves 0.136-0.350 MWh PE under on-site generation mode and 0.103-0.286 MWh PE under off-site generation mode due to avoided grid losses.