Participation of distributed generation in balance Management

Distributed generation is not yet considered to participate in balance management in power systems. Low marginal costs and poor predictability make them less attractive for this application. However, further integration of distributed generation will make participation in balance management a necessity both for down regulation as well as up regulation. The potential of different distributed generators to participate in balance management is analysed. Economic and regulatory boundaries are discussed, as well as improvements to create incentives for distributed generators to participate.