Distributed generation is the future of the electric grid. The term, distributed generation, generally means it is distributed across the grid, rather than in centralized power plants. Why is this a good thing? This paper is intended to focus on the method and rationale for why distributed generation is important, efficient and economical for the safe and reliable operation of an electric grid, and what technologies are best positioned to support it.
Generac starts with a comparison of producing power on an electric grid to building a stone wall on a hill. The hill represents the collective demand of power, and the stone wall represents the generation required to meet that demand. The goal is to build a stone wall that as closely follows the contour of the hill as possible. If you build the wall too high in areas, and you have wasted stone and the labor to build it. Build it too low, and you risk the wall’s integrity, or things jumping over the wall. The wall should be uniform, smooth and level across the entire hill.
This report aims to paint a clear, simplistic picture of the difference in generation types in our electric grid as it exists today.