THE Department of Energy (DoE) has drafted a circular covering embedded power generators and self-generating facilities, or entities that augment the supply of electricity in the power system.
In coming up with the framework for the operation of these entities, the DoE said several issues have been raised by electric power industry participants on the operations and requirements of embedded generators, or generating units that are indirectly connected to the grid through the distribution utilities’ system.
The same issues were observed for self-generating facilities or those owned and constructed by an end-user its own consumption or internal use excluding generation facilities for use by households, clinics, hospitals and other medical facilities.
The DoE said the framework was drawn up because of the potential impact on grid reliability and security.
As such, the department said these facilities should operate within the framework of provision of central dispatch by the grid operator of all generation facilities connected directly or indirectly to the transmission system. It said their dispatch should be in accordance with the dispatch schedule submitted by the market operator.
The department also said regulating the facilities was meant to comply with laws and regulations, including those issued by the DoE and the Energy Regulatory Commission (ERC) and “other government instrumentalities” having authority over them.
It also pointed to the market share and bilateral contracts limitation and other relevant regulations issued by the ERC concerning abuse of market power and competition. — Victor V. Saulon
