distributed generation (smart grid) (DG)

Distributed Generation(DG) is distributed power generation that relies on decentralized power generation facilities distributed through a microgrid or the electric grid.

Distributed generation refers to the point of consumption. For example, it is distributed power generation when a consumer generates its electricity with its own photovoltaic system or when it operates a micro-hydro power plant or generates electricity with a biogas plant.

Distributed energy generation has the advantage over centralized energy generation that there are hardly any costs for feeding the energy into the power grid, for regulation, distribution and interactions. Distributed power generation transfers control and monitoring to the consumer.

As smart grids become more influential, distributed generation can also draw power from the grid or store self-generated power in home storage systems.