ABSTRACT

Distributed generation (DG) of energy is not a new concept, but it has been showing an ever-increasing promise as a cost-effective and energy-efficient method of energy supply. While there are some attempts for a concrete definition of DG, there is no universally accepted one. Many definitions focus on distinguishing them from large centralized generation units. The key concept lies in its local nature: small-scale energy generation units located at or close to the place where the energy products are consumed, thus bypassing the transfer and distribution network. It is part of the distributed energy resources paradigm, which also contains demand response and distributed storage.