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Distributed Generation

Distributed Generation is generated through renewable sources, such as solar, wind, hydro or biomass, and can be used directly by consumers or injected into the electrical grid.

Common questions

The term Distributed Generation (DG) of energy refers to a model of electricity production in which energy generation is decentralized and occurs close to the place of consumption.. In this model, generation systems are installed in homes, businesses, industries or other buildings, allowing consumers to generate part or all of the energy they consume. In a Distributed Generation configuration, the main power generation methods include solar photovoltaics, which uses photovoltaic solar panels to convert sunlight into direct current (DC) electricity, subsequently converted into alternating current (AC) for use in buildings.

Distributed Wind Energy uses small wind turbines installed in urban or rural areas to harness the wind and generate electricity. Cogeneration Systems (CHP), also known as trigeneration systems, use waste heat generation in industrial processes or heating systems to generate electricity.

Already Gas Microturbine are small turbines installed in commercial or industrial buildings to produce electricity and take advantage of waste heat. Small Hydroelectric Power Plants (PCH) use small watercourses to generate electricity in a distributed manner.

Distributed Generation (DG) is an energy production model in which several generation sources are distributed on a small scale close to consumption sites, in contrast to the centralized model of large power plants. This decentralized approach brings advantages such as greater efficiency in transmission and less environmental impact. 

Photovoltaic solar energy is one of the most popular sources in DG. It uses solar panels to convert sunlight directly into electricity through the photovoltaic effect. These systems are installed on roofs of homes, commercial buildings or large solar farms, allowing consumers to generate some or all of their electrical energy locally.

Wind energy is obtained from the movement of the wind, which turns the blades of wind turbines to generate electricity. Yet, Distributed wind farms can be implemented in rural areas or even in urban areas, taking advantage of spaces such as industrial parks and port facilities.

Small and mini-scale hydropower harnesses the kinetic energy of water in smaller rivers and streams, using hydraulic turbines to generate electricity. This approach is more sustainable compared to large dams and dams that can cause significant environmental impacts. 

Already cogeneration, also known as Combined heat and power (CHP) is a system that simultaneously produces electrical energy and useful heat, such as steam or hot water. This technology increases the overall efficiency of the system by taking advantage of waste heat that would normally be wasted in conventional generation systems.

Therefore, The combination of several energy sources in Distributed Generation promotes greater diversification and resilience in the energy supply, in addition to reducing transmission losses associated with electrical energy transported over long distances. This approach contributes to an energy matrix more environmentally sustainable.

Distributed Generation (DG) offers significant benefits, both for consumers and for society in general. This implies reduction of transmission losses in large centralized power plants; electricity needs to travel long distances through transmission lines, which can result in significant energy losses. With DG, electricity production takes place locally, reducing transmission losses and improving the overall efficiency of the electrical system.

Increases the resilience of the electrical system, since energy production is distributed across multiple sources and locations. In the event of failures or natural disasters in a given area, other generation sources can still supply the local energy demand, ensuring greater supply reliability.

The energy sources used in DG, such as solar, wind and biomass, are renewable and have a lower environmental impact compared to fossil energy sources, such as coal and oil. Reducing greenhouse gas emissions and decreasing dependence on fossil fuels contribute to mitigating climate change.

Furthermore, the implementation and maintenance of DG systems, in some cases, requires local labor, which boosts the regional economy and generates jobs in communities where these systems are installed.

Distributed Generation allows also consumers to generate part or all of their own energy, which provides greater energy independence and freedom from energy price fluctuations in the market.

For this, it requires significant investments in transmission and distribution infrastructure. In DG, generation systems are implemented locally, requiring less expansion in the distribution network.

Yet, encourages research and development of more efficient and advanced technologies in renewable energy sources, energy storage and control systems, accelerating the adoption of cleaner and more sustainable solutions. Companies and industries that adopt Distributed Generation can take advantage of economies of scale and gain a competitive advantage, in addition to reducing energy costs over time.

DG can be combined with the adoption of electric vehicles, allowing the charging of these vehicles from renewable energy sources, making transport more sustainable, as well as reduce peak demand on the electricity grid, as local generation can meet part of the demand during peak consumption times, reducing pressure on the system at critical times.

Given this context, it applies a series of advantages that contribute to building a more sustainable, efficient and resilient energy system, aligned with the objectives of combating climate change and improving the quality of life of local communities.

Distributed Generation (DG) is a viable option for countless consumers and entities, from homes to large industries. Basically, any electricity consumer who has the possibility to generate their own electricity can adopt Distributed Generation. 

 

  • Residences: You homeowners install photovoltaic solar energy systems on their roofs or land to generate electricity for their own consumption. This solar energy can power domestic equipment and lighting, reducing dependence on the conventional electrical grid.
  • Businesses and Small Businesses: To the shops, restaurants, offices and small businesses invest in solar, wind or other renewable energy systems in order to reduce your energy costs and demonstrate your commitment to sustainability.
  • Industries: To the big industries adopt GD, installing solar panels in its available areas or adopting other technologies, such as cogeneration, to supply part of its energy needs and optimize its production processes.
  • Agriculture and Agroindustry: To the rural properties enjoy GD to generate energy from sources such as solar, wind or biomass energy, becoming self-sufficient and reducing operating costs.
  • Condominiums and Housing Complexes: You residential condominiums and housing developments implement DG systems shared among residents, in order to reduce significantly reduce electricity costs and benefit the entire community.
  • Public Establishments: You government agencies, schools, hospitals and other public institutions adopt Distributed Generation to reduce energy bills and serve as an example of leadership in sustainability for society.
  • Real estate developments: To the developers and builders integrate GD systems in new real estate projects, making buildings more sustainable and attractive to customers.
  • Rural Enterprises: In addition to agriculture, rural enterprises such as hotels and resorts benefit of DG, mainly when located in isolated areas or with difficult access to the conventional electrical grid.
  • Military Installations and Remote Bases: In military areas or remote bases, Distributed Generation provides a reliable, independent power source to ensure operations in remote locations.
  • Concessionaires and Energy Companies: Some energy concessionaires and companies in the sector also adopt Distributed Generation, investing in DG projects to diversify its energy matrix and meet sustainability goals.


Given this, Distributed Generation is an affordable and flexible solution adopted by different types of consumerswhether residential, commercial, industrial or institutional, provide economic, environmental and social benefits for all involved.

Distributed Generation (DG) is a form of electricity production in which generation occurs in small units close to points of consumption. To adopt Distributed Generation, it is necessary to invest in specific equipment for the production of electricity at the consumer's facilities. The types of equipment needed vary according to the energy source used. Some of the main sources of energy for DG are solar photovoltaic, wind, biomass and cogeneration (CHP – Combined Heat and Power).

To generate electricity from sunlight, photovoltaic solar panels are needed. These panels convert sunlight into electrical energy and are installed on roofs or other areas exposed to the sun. In wind energy generation, wind turbines or wind turbines are used, which capture wind energy and transform it into electricity. In the generation of energy from biomass, equipment such as boilers, furnaces or generators powered by biomass, such as agricultural and forestry residues or organic residues, is required. Finally, in cogeneration, equipment is used that produces electricity and heat at the same time, such as gas turbines coupled to cogeneration systems.

In this way, the adoption of Distributed Generation can offer numerous advantages, such as the reduction of losses in energy transmission, greater resilience of the electrical system and contribution to the sustainability and decentralization of the energy sector. However, it is important to emphasize that the viability of Distributed Generation can vary according to the specific conditions of each consumer.

The equipment used in Distributed Generation is designed to be efficient and durable over time, with a useful life that can vary from 15 to 25 years, depending on the type of technology and the quality of the equipment used.

Despite initial investments, Distributed Generation has long-term economic advantages, since operation and maintenance costs are generally lower compared to conventional centralized generation systems. However, before adopting it, it is essential to carry out a specific technical and economic feasibility study for each case, considering the costs, benefits and characteristics of the consumer's energy consumption profile.

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The equipment needed to adopt Distributed Generation (DG) depends on the energy source chosen for local generation. Each source requires specific equipment to capture, convert and distribute the energy generated. For Photovoltaic Energy these are the main equipment:

 

  • Solar Panels: These are the main devices that capture sunlight and convert it into electricity. through of the photovoltaic effect.
  • Solar Inverter: Responsible for converting direct current electricity (generated by solar panels) into alternating current used in homes and establishments.
  • Support Structure: For safe and proper installation of solar panels on roofs or on ground supports.
  • Bidirectional Meter: It allows measuring both the energy consumed from the electrical grid and the surplus energy injected into the grid during periods of surplus generation.

 

Wind Energy: 

For the Wind Turbine: Responsible for converting the kinetic energy of the wind into electricity through of a generator.

  • Charge Controller: Regulates the amount of energy sent to the storage battery (if any) and to the mains.
  • Inverter: Converts the electrical energy produced by the wind turbine into alternating current used in homes or in the electrical system.
  • Biogas and Biomass:

For the Biogas or Biomass Generator: Converts biogas or biomass into electrical energy through of controlled combustion.

  • Gas Treatment System: When biogas is used, a treatment system is required to remove impurities and ensure a cleaner fuel.
  • Storage System: Occasionally, energy storage systems (batteries) are used to ensure continuous availability of electricity, especially in stand-alone systems.

For Fuel Cells:

  • Fuel Cell: It is the device that performs the direct conversion of the chemical energy of the fuel (for example, hydrogen) into electrical energy and heat.
  • Fueling System: In the case of fuel cells powered by hydrogen, a fueling system is required to supply the fuel to the cell.

It is noteworthy that the need for other equipment and components may diversify according to the scale of the project, the desired generation capacity and the need for energy storage. Furthermore, in Distributed Generation systems connected to the power grid, a monitoring and control system is also used to ensure proper integration and safe operation with the power grid.

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To adopt Distributed Generation (DG), some technical requirements must be considered in order to ensure proper integration of the local generation system with the existing electrical grid. Before implementing a DG system, it is essential to carry out a feasibility study to assess the possible generation capacity, the local energy demand, the characteristics of energy consumption throughout the day and the space available for the installation of equipment.

To connect the DG to the existing electrical grid, it is necessary to obtain permission and follow the guidelines of the regulatory authorities and the power distribution company. A connection contract may be required, with technical specifications to guarantee system security and stability.

That said, it is essential to install a bidirectional metering system to measure the amount of energy consumed from the electrical grid and the amount of surplus energy that is injected into the grid during periods of surplus generation. This meter allows the correct accounting of energy credits.

DG systems must meet electrical protection requirements to ensure people's safety and network stability. This may include overvoltage, short circuit, and overload protection devices.

Yet, the GD must guarantee the quality of the energy supplied to the electrical grid, meeting the frequency, voltage and harmonic distortion standards established by regulatory standards.

The introduction of DG into the power grid can affect the stability of the system if not properly designed. It is important to consider DG's ability to meet local demand and generation fluctuations, especially in solar and wind energy systems, diversifying according to weather conditions.

It is crucial that the equipment used in DG meet applicable standards and certifications, ensuring its safety, efficiency and compliance with technical standards.

A preventive maintenance plan also must be implemented to ensure the continued good functioning of DG systems. In addition, it is important to monitor energy generation and consumption to optimize performance and identify potential problems.

By meeting these technical requirements, the adoption of Distributed Generation apply significant benefits for consumers and the electricity grid, promoting a cleaner, more resilient and sustainable energy matrix.

The adoption of Distributed Generation (DG) is encouraged by government programs and policies, as well as by measures adopted by companies and energy concessionaires. These financial incentives aim to make the implementation of DG systems more accessible, stimulating the transition to renewable and sustainable energy sources. It is presented within this context:

 

  • Energy Credits (Net Metering): Many countries and states adopt the system of net metering, which allows DG system owners to receive credits on the energy bill for the excess energy generated and injected into the electrical grid. These credits can be used to offset energy consumption during periods when DG is not generating enough energy to meet demand.
  • Subsidy Programs and Tax Incentives: Governments and regulators offer subsidy programs and tax incentives to reduce the initial costs of installing DG systems. That includes Income Tax discounts, exemption from taxes on equipment and materials, or lines of credit with lower interest rates to finance the acquisition of systems.
  • Renewable Energy Laws: Some regions have renewable energy laws that set mandatory targets for the adoption of clean energy sources. This may encourage companies and individuals to invest in GD as part of their compliance strategies with these laws.
  • Special Financing: Some financial institutions offer specific lines of credit for DG projects, with more attractive financing conditions, such as long terms and reduced interest rates.
  • Energy Auctions: In some countries, renewable energy auctions are held, on what the projects of GD compete to sell the energy generated at competitive prices to concessionaires or distribution companies.
  • Green Energy Programs: Energy companies and utilities offer green energy programs that allow consumers to the choice of pay an additional amount to support DG projects and other renewable sources, increasing demand and investment in clean energy.
  • Renewable Energy Certificates (RECs): In some regions, renewable energy certificates are issued for each megawatt-hour (MWh) of renewable energy produced. These RECs can be commercialized, providing an additional source of revenue for DG system owners.

Therefore, it is recommended that those interested in adopting Distributed Generation seek updated information from government agencies, energy concessionaires and financial institutions to learn about the incentives available in their location. these incentives do a big difference in the return on investment and economic viability of DG projects, making them even more attractive to consumers.

 

Distributed Generation (DG) is a form of electricity generation in which electricity is produced in small units close to points of consumption. Although it is a promising and sustainable alternative, DG also faces some challenges that may impact its implementation and development. Among the main challenges are:

 

  •  Regulation and Regulatory Framework: Distributed Generation regulation may vary from country to country and from state to state. The lack of a clear and consistent regulatory framework can generate uncertainty for investors and hinder the expansion of this type of generation.

 

  •  Integration to the Power Grid: DG involves connecting small generating units to the power grid, which may require adaptations to the existing infrastructure. In view of this, it is essential to guarantee the stability and security of the electrical system by integrating variable sources, such as solar and wind.

 

  •  Upfront Investments and Access to Finance: Deploying DG systems can require significant upfront investments. The availability of financing lines and government incentives can be decisive in making these projects economically viable.

 

  •  Demand and Generation Management: DG, as it is decentralized, introduces a new challenge in demand and generation management. It is necessary to implement intelligent systems that coordinate and optimize the flow of energy between consumers and generating units.

 

  •  Integration with Energy Policies: The insertion of Distributed Generation in the context of national energy policies is essential to promote its sustainable growth. Harmonization with the objectives of diversifying the energy matrix and reducing carbon emissions is an important challenge.

 

  •  Changes in the Business Model: Distributed Generation can represent a significant change in the business model of utilities and energy companies. 

 

  •  Training and Awareness: The implementation and operation of Distributed Generation require technical training and consumer awareness. It is essential that users understand the benefits of DG and know how to use and manage their generating units.

 

Despite the challenges, Distributed Generation has numerous advantages, such as reducing losses in energy transmission, greater resilience of the electrical system and contribution to the sustainability and decentralization of the sector. Overcoming the challenges will depend on the engagement of governments, companies and civil society in promoting favorable public policies and developing innovative solutions to make DG sustainable.

There are many specialist companies on the market, but it is essential to carry out careful research to select those with proven experience, solid reputation and adequate technical knowledge. Always look for:

 

  • Research and References: Research GD companies in your area and look for references and reviews from past customers. Make sure the company has experience installing systems similar to what you're looking for.
  • Certifications and Credentials: Verify that the company has the necessary certifications and credentials for installing DG systems. This may include technical certifications, licenses, permits and registration with regulatory bodies.
  • Project Portfolio: Ask the supplier for information about previous projects carried out. A portfolio of successful projects is a good indication of the company's experience and technical capabilities.
  • Warranties and Support: Make sure the company offers adequate warranties for the equipment and services provided. Also, check if they offer technical support and post-installation service.
  • Quote Comparison: Request detailed quotes from different suppliers and compare the prices and conditions offered. Beware of budgets that are too low as they may indicate the use of inferior materials or lack of technical experience.
  • Equipment Partnerships and Certifications: Check if the supplier has partnerships with renowned DG equipment manufacturers and if they are certified to use and install this equipment.
  • Facility Visits: If possible, visit facilities of projects already completed by the company to assess the quality of work and talk to customers about their experience.
  • Detailed Contract: Before closing the deal, ensure that all information and agreements are recorded in a detailed contract, including terms, responsibilities, guarantees and prices.

Remember that Distributed Generation is a long-term investment, and choosing reliable and experienced suppliers is essential to ensure the proper functioning of the system over time. Therefore, when making a decision, lays down solid partnership with a company that offers continuous technical support and cares about customer satisfaction. Proper research will ensure you make an informed choice and have peace of mind when adopting Distributed Generation in your project.

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