What is Distributed Generation?

Distributed energy refers to the use of on-site (local, non-centralized) power generation sources to augment and/or replace the traditional centralized utility grid. Examples of renewable distributed generation include solar, geothermal, wind and certain types of fuel cells.

According to the US Department of Energy, global energy use will jump by 49% between 2007 and 2035 - as energy demand continues to increase our world's centralized electrical power grids experience tremendous and unsustainable strain. This strain leaves us vulnerable to electricity shortages, rolling blackouts and electricity quality issues. Making matters worse, a large number of the centralized power grids are inefficient and "dirty" - squandering precious natural resources.

A form of distributed energy is the "microgrid". Microgrids provide relief to strained central generation grids by providing localized clusters of distributed energy sources that can function independent of or in conjunction with the centralized grid. Examples of technologies used in microgrid arrangements include fuel cells, wind, solar and other distributed generation sources.