What is Distributed Generation (DG)?
Distributed Generation (DG) is characterized by electricity generation from many small energy sources located at the point of use instead of from large, centralized facilities, such as coal, nuclear and gas powered plants. DG is typically owned and operated by electricity customers themselves to reduce energy costs, boost on-site power reliability, and improve power quality. The term “DG” is often used interchangeably with “cogeneration” or “small power production.”
Distributed Renewable Generation (DRG) or “on-site” generation, describes DG that is produced from renewable sources, such as solar photovoltaic (PV) panels and on-site wind generators. Most DG systems produce enough energy to meet a portion of a home’s or business’ energy needs, reducing the amount of electricity purchased from the utility. Such reductions are equivalent to reductions in consumption derived from efficiency or conservation measures.
What does Distributed Renewable Generation or “on-site” generation mean for SRE residential, commercial and government customers?
There are many benefits of DRG, including:
- Reduced Peak Power Loads – solar generation typically occurs during periods of peak power load, offsetting more expensive peak power and reducing grid stress during high-load periods;
- Reduced Transmission & Distribution (T&D) Expenditures – DRG is located at the point of use; and
- Improved Grid Reliability – DRG reduces the frequency at which distribution equipment is used near its capacity, reducing equipment failures and power outages.
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