Distributed generation refers to electricity production at or near the place where it is consumed—in homes, commercial buildings and industrial premises. It can also be applied on a larger scale in communities or precincts.
Distributed generation is an alternative to conventional electricity generation that uses centralised, large-scale power stations to generate electricity and rely on high voltage transmission networks.
Examples of distributed generation include:
Potential benefits of distributed generation include:
These benefits are best realised when distributed generation is combined with energy efficiency and demand management. The three elements are jointly referred to as distributed energy.