Presented at International Conference on Energy Resources and ICERSTD2013-13-122 Technologies for Sustainable Development, 07-09 February 2013, © IJETAE2013 Howrah, India International Journal of Emerging Technology and Advanced Engineering Volume 3, Special Issue 3: ICERTSD 2013, Feb 2013, pages 498-503 An ISO 9001:2008 certified Int. Journal, ISSN 2250-2459, available online at www.ijetae.com ASSESSMENT OF DISTRIBUTED GENERATION IN A DEREGULATED POWER MARKET SCENARIO IN INDIA Dr. C.K.Chanda, Avishek Ghose Roy Bengal Engineering and Science University, Department of Electrical Engineering Shibpur, Howrah, Pin-711103, West Bengal, India ckc_math@yahoo.com,avishekghoseroy02@gmail.com ABSTRACT Most of the electricity produced today is generated in large generating stations, which is then transmitted at high voltages to the load centres and distributed among consumers at distribution level voltage through local distribution systems. On the other hand by Distributed Generation (DG) power is produced on a customer’s site or at a local distribution network. Distributed Generation is defined as generation located at or near the load centres. The generation technologies on fuel resources used can be classified into renewable and non renewable. The liberalization of the electricity market and the separation between electricity supplier and network operator in India have drawn attention to the subject of connecting generated power (either by distributed generation or by conventional centralized power plants) directly to grids. Besides this there are many reasons why a customer may choose to install a distributed generator. Distributed Generation can be used to generate a customer’s entire electricity supply or for peak shaving (generating a portion of a customer’s power onsite to reduce the amount of electricity purchased during peak price periods) or for standby or emergency generation (as a backup to Wires Owner's power supply) or as a green power source (using renewable technology) or for increased reliability. In some remote locations, DG can be less costly as it eliminates the need for expensive construction of distribution and/or transmission lines. The objective of this paper is to evaluate the scope of Distributed Generation and study the impact of it on the deregulated power market scenario in India using Herfindahl-Hirschman Index (HHI). Keywords: Distributed Generation (DG), Deregulated Power Market, Renewable Energy, Herfindahl-Hirschman Index (HHI), Carbon Footprint. 1. INTRODUCTION 1.1 Distributed Generation Distributed Generation is defined as generation located at or near the load centres. They generate electricity through various small scale power generation technologies. It has no exact definition but all the definitions are more or less similar in nature. Let us have a look on some of the existing definitions: According to CIGRE (International Council on Large Electric Systems) [1] Distributed Generation is not centrally planned, usually connected to the distribution network, smaller than 50 or 100 Megawatt. IEA (International Energy Agency) [2] says that the Distributed Generation is generating plant serving a customer on site, or providing support to a distribution network and connected to the grid at distribution level voltages. DPCA (Distributed Power Coalition of America) [3] defines that Distributed Generation is any small scale power generation technology that provides electric power at a site closer to customer than central station generation. A distributed power unit can be connected directly to the consumer or to a utility’s transmission or distribution system. According to Ministry of New and Renewable Energy, Government of India, [4] Distributed Generation is defined as: - Installation and operation of electric power generation units connected to the local network or off-grid generation characterized by  Generation capacity ranging from Kilowatt to Megawatt level.  Generation at distribution voltages (11kV or below).  Grid interconnected at distribution line side.  Interconnected to a local grid or totally off-grid, including captive. Distributed Generation energy resources can be classified into renewable and non-renewable. The Distributed Generation technologies based on renewable source of energy are Wind, Photo-voltaic & Solar thermal, Ocean (Tidal and Marine current), Small Hydro. The Distributed generation technologies based on non renewable source of energy are Micro Turbine, Industrial Combustion Turbine, Combined Cycle Gas Turbine and Reciprocating engines (Internal Combustion Engine) [5, 18, 19].