What is meant by 'distributed generation'?

Distributed generation refers to the generation of electricity from many small energy sources that are situated close to the point of consumption. This approach contrasts with traditional methods where energy is generated at large central facilities and then transmitted over long distances to consumers. The advantages of distributed generation include increased energy efficiency, reduced transmission losses, and the ability to integrate renewable energy sources, such as solar panels and wind turbines, into the local grid.

This localized generation allows for greater energy resilience, as it can reduce dependence on a single source of energy supply, and can also support more sustainable energy practices by empowering communities to generate their own electricity. As energy production shifts towards more decentralized systems, it aligns with goals for increased reliability and environmental sustainability in the energy sector.