Current trends in energy supply, demand and generation in combination with the steady growth of electricity consumption worldwide lead to a new thinking. By emphasizing greater energy efficiency and renewable energy sources, problems associated with current solutions can be mitigated.
Technologies for Distributed Generation (DG) like wind power, fuel cell technologies, biomass power, solar Photovoltaic (PV) power and small hydropower farms become competitive as viable technologies for grid based power generation. These energy sources - small, modular electricity generators sited close to the customer load - can enable utilities to defer or eliminate costly investments in transmission and distribution systems upgrades, and provide customers with better quality, more reliable energy supplies and a cleaner environment.
Distributed generation normally is connected to regional distribution networks - at lower voltages. Grid connected DG installations, which will significantly increase in number in the future, can range in size from a few kilowatts to hundreds of megawatts.