Distributed generation is an approach that employs small-scale technologies to produce electricity close to the end users of power. DG technologies often consist of modular (and sometimes renewable-energy) generators, and they offer a number of potential benefits. In many cases, distributed generators can provide lower-cost electricity and higher power reliability and security with fewer environmental consequences than can traditional power generators.
In contrast to the use of a few large-scale generating stations located far from load centers--the approach used in the traditional electric power paradigm--DG systems employ numerous, but small plants and can provide power onsite with little reliance on the distribution and transmission grid. DG technologies yield power in capacities that range from a fraction of a kilowatt [kW] to about 100 megawatts [MW]. Utility-scale generation units generate power in capacities that often reach beyond 1,000 MW.