Distributive power

Electricity is normally generated at a large power station and distributed to users through a network of wires known as the power grid. The power station attends to the electricity needs of every building and factory within a large area.

Distributed power generation, on the other hand, is the use of small power plants for on-site power generation. This means that electricity is generated right where it is required. Just imagine every building or factory having a small power generator in its backyard!

Advantages of Distributed Generation

Since electricity does not need to be distributed to its users, the the need for large transmission infrastructure is eliminated. Losses that occur during electrical power transmission are greatly reduced. More importantly, on-site generation allows for the use of technologies, such as microturbines and combined heat and power (CHP). The latter can greatly increase the efficiency with which energy is utilised. As a result, distributed generation lowers emissions and operating cost through reducing losses and increasing efficiency. From a company's point of view, distributed power generation gives it greater control, choice and flexibility in meeting needs for power and heat energy.

Another advantage of distributed power is the ability to feed any excess energy into the national grid and get paid for it!