Distributed generation, also distributed energy, on-site generation (GSO) or district / decentralized energy is generated or stored by a variety of small network-connected devices called Distributed Energy Resources (DER) or distributed systems of energy resources.
Conventional power plants, such as coal, gas and nuclear power plants, as well as hydroelectric dams and large-scale solar power plants, are centralized and often require electricity to be transmitted over long distances. By contrast, DER systems are decentralized, modular and more flexible technologies, located close to the load they serve, although with capacities of only 10 megawatts (MW) or less. These systems may comprise multiple generation and storage components. In this case they are called hybrid energy systems.
DER systems typically use renewable energy sources, including small hydropower, biomass, biogas, solar energy, wind power and geothermal energy, and are increasingly playing an important role in the energy distribution system Electric. A grid-connected device for electricity storage can also be classified as a DER system, and is often called a Distributed Energy Storage System (DESS). Through an interface, DER systems can be managed and coordinated within an intelligent network. Distributed generation and storage allow the collection of energy from many sources and can reduce environmental impacts and improve security of supply.
Microgrids are modern, localized, small-scale networks, unlike the traditional, centralized (macrogrid) grid. Micro-enterprises can disconnect from the centralized network and operate autonomously, reinforce network resistance and help mitigate grid disturbances. Generally they are low voltage AC networks, often using diesel generators and are installed by the community they serve. Micro-enterprises increasingly use a mix of different distributed energy resources, such as hybrid solar energy systems, which significantly reduce the amount of carbon emitted.