How does distributed generation utilize local resources?

The utilization of local resources in distributed generation is primarily centered around harnessing energy sources that are readily available within a community or region. This approach significantly reduces transport costs associated with energy delivery because the energy is produced close to where it is consumed. For instance, local solar panels, wind turbines, or biomass facilities leverage the nearby environmental conditions to generate power efficiently.

By focusing on local energy resources, distributed generation also enhances energy resilience, as it minimizes dependency on long-distance energy transport and the vulnerabilities associated with it. This local production helps to create a more sustainable energy model, often utilizing renewable resources that align with community needs and environmental goals.

In contrast, large-scale hydroelectric facilities or centralized power facilities tend to require significant infrastructure and do not take advantage of nearby resources, often increasing costs and complexity related to energy distribution. Relying exclusively on imported fossil fuels further distances energy generation from local resources, leading to higher transport costs and increased carbon footprints, which is contrary to the principles of distributed generation.