distributed generation

The opportunities of distributed generation

When the vast majority of Americans turn on the lights, the electricity is coming from a centralized, fossil fuel power plant.

However, there is a big change on the horizon that will alter that - distributed (also called decentralized) generation. This is when power is produced much closer to where it is used, such as with rooftop solar panels or natural gas-fired combined heat and power systems, including fuel cells and microturbines.

Currently, less than 7 percent of U.S. electricity is generated outside a centrally located power plant. Expanding distributed generation will bring exciting opportunities to increase efficiency, improve our resilience to extreme weather, and reduce greenhouse gas emissions. It will also bring challenges for our existing grid on which we must continue to depend.

These opportunities and challenges were the focus of a discussion I participated in this week at the World Alliance for Decentralized Energy annual conference with WADE Executive Director David Sweet, Duke Energy Chairman James Rogers, and PSEG President Ralph LaRossa.

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