Cost analysis for diesel generator:-incorporating the fuel price and plot (say from 1999 to date and

see the increased rate of price ie year vs. price)

Figure 1.8. The world and the U.S. wind power cumulative capacity [1.15], [1.16]. Distributed Generation Applications The ever-increasing need for electrical power generation, steady progress in the power deregulation and utility restructuring, and tight constraints over the construction of new transmission lines for long distance power transmission have created increased interest in distributed power generation. DG sources are normally placed close to consumption centers and are added mostly at the distribution level. They are relatively small in size (relative to the power capacity of the system in which they are placed; and normally less than 10 MW) and modular in structure. These DG devices can be strategically placed in power systems for grid reinforcement, reducing power losses and on-peak operating costs, improving voltage profiles and load factors, deferring or eliminating the need for system upgrades, and improving system integrity, reliability and efficiency [1.33].
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The technology advances in renewable energy sources, fuel cells and small generation techniques provide a diverse portfolio for DG applications. Table 1.3 shows the candidate technologies for DG systems. The DOE proposed a strategic plan for distributed energy sources in 2000 [1.29]. The energy market with DG sources in 2020 was envisioned in the plan as The United States will have the cleanest and most efficient and reliable energy system in the world by maximizing the use of affordable distributed energy resources [1.29]. To achieve this ultimate goal, the DOE also set sub-goals for DG development. The long-term goal by 2020 is to make the nations energy generation and delivery system the cleanest and most efficient, reliable, and affordable in the world by maximizing the use of cost efficient distributed energy resources. The mid-term by 2010 is to reduce costs, to increase the efficiency and reliability of distributed generation technologies, and to add 20% of new electric capacity. By the end of 1999, about 22GW distributed energy systems with 18 GW backup units were installed across the US [1.31]. According to EIA, U.S. generation capacity history and forecast data, 198 GW of new capacity is needed during the period between 2000 and 2010 [1.4]. Based on the mid-term goal, 20% (39.6 GW) of the new addition should come from DG systems. This means about 4.4% annual growth rate in DG capacity.\

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