What is distributed generation (DG)?

Distributed generation (DG) refers to the production of electricity from sources that are located close to the point of use, rather than from centralized power plants that generate electricity from distant locations. This approach typically utilizes smaller-scale technologies and renewable energy sources, such as solar panels, wind turbines, and biomass systems.

One of the primary advantages of distributed generation is that it can reduce transmission losses associated with long-distance electricity transportation. Additionally, it enhances energy reliability and can foster energy independence by allowing communities or individuals to generate their own power. This localized generation contributes to a more resilient and flexible energy grid, where electricity can be produced and consumed on-site, addressing local energy needs effectively.

This understanding highlights the significance of distributed generation in promoting sustainable and efficient energy solutions, particularly in the context of increasing global energy demands and the growing emphasis on renewable energy technologies.