Distributed generation tends to occur when the energy source and the consumer are located close together, limiting transmission and distribution losses (Institute of Engineering and Technology [IET], 2006).

Distributed renewables are part of the solution to decarbonise the UK energy infrastructure, society and economy. Smaller-scale renewables are generally more expensive, and have a higher embodied energy than large-scale renewables. However, they increase the total potential of sustainable generation of the UK and help increase efficiency and decrease demand where they are deployed.

Minimising losses in the system is a delicate balance; one of the key areas is a balance between transmission losses and storage losses. Distributed generation and Microgrids can save on transmission losses and must be carefully designed to ensure that storage and the losses associated are minimised. Microgrids can be used in niche applications to assist distributed generation and help manage the variability of the transmission grid.

Reference:

Institute of Engineering and Technology (IET) (2006) “Distributed Generation: A Factfile provided by the Institute of Engineering and Technology”. Available at: www.theiet.org/factfiles/energy/distributed-generation.cfm?type=pdf [Live: March 2010].