Why is proximity to load centers important for distributed generation systems?

Proximity to load centers is important for distributed generation systems primarily because it helps in reducing energy transmission losses. When energy is generated close to the point of use, the distance that electricity must travel to reach consumers is significantly shortened. This reduction in distance minimizes the resistance encountered in transmission lines, which can otherwise result in energy losses as heat.

Longer transmission distances typically lead to higher losses, making it less efficient and more expensive to deliver power from remote generation sites. Therefore, by situating distributed generation systems near load centers, operators can enhance the overall efficiency of the energy supply chain, ensuring that more of the generated power is available for consumption. Additionally, this proximity can lead to reduced infrastructure costs, as fewer extensive transmission systems may be required.