Rather Than Transmitting Energy Across The Grid From A Large, Centralized Facility, Distributed Generation Generates Electricity On-Site For Use On-Site
Distributed Generation can also provide a way for communities and individuals to generate their own electricity, which can increase energy independence and reduce reliance on fossil fuels. This can also have economic benefits, as it can reduce the need for expensive transmission and distribution infrastructure, and can also provide opportunities for local businesses and entrepreneurs.
One type of Distributed Generation system is the microgrid. A microgrid is a small-scale power grid that can operate independently of the main power grid. Microgrids can be used in a variety of settings, such as remote communities, campus environments, and industrial sites. They can be powered by a variety of energy sources, including renewable energy sources and traditional fossil fuels. Microgrids can provide a reliable and resilient power supply, as they can continue to operate during power outages on the main grid.
Another type of Distributed Generation system is combined heat and power (CHP) system. CHP systems generate electricity and heat simultaneously, by using the waste heat from the electricity generation process to provide heat for buildings or industrial processes. CHP systems are often more efficient than traditional power generation methods, as they can use up to 90% of the energy that they generate.