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Thus a relay is required which will detect when the embedded generator, and perhaps a surrounding part of the network, has become islanded and will then trip the generator. This relay must work within the dead-time of any autoreclose scheme if out-ofphase reconnection is to be avoided. Although a number of techniques are used, including rate-of-change-of-frequency (ROCOF) and voltage vector shift, these are prone to nuisance tripping if set sensitively to detect islanding rapidly. The neutral grounding of the generator is a related issue because in a number of countries it is considered unacceptable to operate an ungrounded system and so care is required as to where a neutral connection is obtained and grounded.

In contrast, the economic impact of embedded generation on distribution systems is only now being seriously addressed. Embedded generation alters the power flows in the network and so will alter network losses. If a small embedded generator is located close to a large load then the network losses will be reduced as both real and reactive power can be supplied to the load from the adjacent generator. Conversely, if a large embedded generator is located far away from network loads then it is likely to increase losses on the distribution system.

As embedded generation supplies an increasing proportion of the customer load, particularly during times of low demand, the provision of generation reserve and frequency control becomes an important issue. e. steam or hydro-sets) is able to provide these important ancillary services which are necessary for the power system to function. If embedded generation displaces such plant then these services must be provided by others and the associated additional costs will then reduce the value of the embedded generation output.

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