Distributed Generation

Distributed generation is a term used to describe any process for the production of electricity that is localized, with minimal transmission and distribution systems. Distributed generation stands in contrast to centralized methods of energy generation that provide electricity across a large region by means of a network (often referred to as “the grid”) of high- and low-voltage transmission lines with substations, and associated voltage loss and [Page 141]high infrastructure costs. Distributed generation generally falls within the range of 3–10,000 kW of generation and involves less initial investment, greater reliability (fewer outages) and consistency (fewer power dips or surges), and in almost all instances, less environmental impact than centralized generation. A combination of circumstances including the development of alternative energy sources, environmental regulations, utility restructuring, and ...