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It is now more than a decade since distributed generation (DG) began to excite major interest amongst electric power system planners and operators, energy policy makers and regulators as well as developers. This paper presents an overview of the key issues concerning the integration of distributed generation into electric power systems that are of most interest today. The main drivers behind the focus on DG integration, especially of the renewable type, in many countries around the world are discussed. A synopsis of the main challenges that must be overcome in the process is presented. Particular emphasis is placed on the need to move away from the fit and forget approach of connecting DG to electric power systems to a policy of integrating DG into power system planning and operation through active management of distribution networks and application of other novel concepts. The paper also analyses the repercussions in transmission system operation and expansion that result from the connection of large amounts of DG of different energy conversion systems focusing on issues related with impacts in steady state operation, contingency analysis, protection coordination as well as dynamic behaviour analysis. A discussion on the possibility of provision of ancillary services by DG is also included. Some results from studies performed in the interconnected Portuguese transmission system are presented and discussed. Some of the opportunities that could be exploited in support of the integration and hence greater penetration of DG into electric power systems are also explored.

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The problem of defining and classifying power system stability has been addressed by several previous CIGRE and IEEE Task Force reports. These earlier efforts, however, do not completely reflect current industry needs, experiences and understanding. In particular, the definitions are not precise and the classifications do not encompass all practical instability scenarios.This report developed by a Task Force, set up jointly by the CIGRE Study Committee 38 and the IEEE Power System Dynamic Performance Committee, addresses the issue of stability definition and classification in power systems from a fundamental viewpoint and closely examines the practical ramifications. The report aims to define power system stability more precisely, provide a systematic basis for its classification, and discuss linkages to related issues such as power system reliability and security.