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Definition[]

Distributed generation (DG) is

[s]mall-scale, on-site generation systems owned by entities that are primarily consumers of electricity.[1]

Overview[]

"Distributed generation brings alternative-energy production closer to the point of use on the energy grid, reducing the costs of energy, diversifying sources of energy, and improving grid operations. Energy efficiency uses intelligent building systems and information technology as well as advanced materials and better building management to reduce demand for energy overall and to shave demand during times of peak energy use, further cutting costs for consumers. And the smart grid serves as an operating system that links these diverse energy technologies together, balancing supply and demand more efficiently and productively. This optimizes the economic value of capital investments in energy generation and use, and facilitates grid optimization in order to manage a more dynamic, interconnected, and resilient energy network."[2]

References[]