Distributed generation is the decentralization of electricity supply services using small, consumer-specific energy sources like microturbines, wind turbines, and solar cells. These facilities can range from serving a city to a single dwelling and can operate independently or be connected to the main grid. While installation costs are high, the potential for revenue from excess energy resale is a benefit.
Distributed generation is the practice of decentralizing electricity supply services in favor of small, consumer-specific energy sources. Also known as distributed energy resources (DERs), these facilities can serve consumption units as large as a city or as small as a single dwelling. The DER plant typically generates energy with alternative methods to those used by centralized electric utilities. These alternative energy sources include microturbines, wind turbines and solar cells and are generally located in close proximity to or within the boundaries of the consumer unit. Distributed generation facilities require careful consideration regarding the specifics of the installation to achieve their full potential, but they can be extremely profitable and even become income generating through excess energy resale initiatives.
Most electricity consumers get their power from an established power grid. These grid networks are powered by large power generation plants that typically generate their electricity using fossil fuel or water powered turbines. These large steam and hydroelectric power plants are usually located away from most of the consumption points they supply due to air pollution and fuel availability issues. This requires extensive overhead cable and secondary distribution networks to maintain the power supply. While these large facilities have excellent economies of scale and can provide affordable energy to their consumers, the overall cost in terms of related financial, environmental, efficiency and reliability factors is usually very high.
The use of distributed generation power systems allows smaller consumer groups to access the benefits of a reliable power source right at their fingertips. These groups can be towns or cities, industrial or commercial complexes, a suburb or an individual house. Sources of power generation in distributed generation networks vary significantly based on consumer needs and typically range in capacity from 3 to 10,000 kilowatts. Installations serving larger consumer groups usually use conventional or micro combustion turbines, while smaller suppliers may use wind turbines, gas or diesel powered generators, solar panels or sterling engine generators. The average DER network would typically also include facilities for storing the generated energy.
Depending on the specifics of the installation, distributed generation networks can operate independently or be co-connected to the main grid. This allows the grid to draw power from the main grid or disconnect from it and run autonomously as desired. These networks are known as microgrids and typically serve suburbs or entire cities. Similar systems can be applied at single points of consumption such as domestic dwellings where the house draws energy from the main grid with an additional on-site source provided by solar panels or wind turbines. This allows the home to operate on the grid during times of high demand or as a standalone unit during times of low demand or power outages.
While the benefits of distributed generation power supplies are indisputable, the high initial installation costs have tended to relegate their use, especially for individual consumers, into the realm of experimental technology. Fortunately, as technologies mature and demand slowly increases, the price of equipment may fall accordingly. An additional benefit of this method for both large and small consumers is the revenue potential associated with selling excess energy to centralized suppliers.
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