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Distributed energy (DE) technologies consist primarily of energy generation and storage systems placed at or near the point of use. DE provides consumers with greater reliability, adequate power quality, and the possibility to participate in competitive electric power markets. DE also has the potential to mitigate congestion in transmission lines, control price fluctuations, strengthen energy security, and provide greater stability to the electricity grid. The use of DE technologies can lead to lower emissions and, particularly in combined heat and power (CHP) applications, to improved efficiency.
DE encompasses a range of technologies including fuel cells, microturbines, reciprocating engines, load reduction, and energy management technologies. DE also involves power electronic interfaces, communications and control devices for efficient dispatch and operation of single generating units, multiple system packages, and aggregated blocks of power.
The primary fuel for many distributed generation systems is natural gas, but hydrogen may play an important role in the future. Renewable energy technologies—such as solar electricity, solar buildings, biomass power, and wind turbines—are also popular.
A 1999 DOE report, "Distributed Utility Perspectives," examined 275 DE projects in the United States managed by 121 companies to find out which DE technologies were being used (see graph). The report found that the most popular DE technologies are:
- Reciprocating engine-generators (primarily diesel- and petrol-driven)
- Solar electric power systems (photovoltaics, or PV)
- Demand-side management (DSM) technologies aimed at reducing overall energy consumption.
 A study of 275 DE installations found that reciprocating engines, solar electric power, and demand-side management systems are the three most commonly used DE technologies. In some cases, more than one technology was used per installation, with a total of 325 systems for 275 projects. Note: CSP is concentrating solar power; EE is energy efficiency. (Source: Distributed Utility Associates) |
Although diesel- and petrol-fueled reciprocating engines are one of the most common DE technologies, especially for standby power applications, they create significant pollution (in terms of both emissions and noise) relative to natural gas- and renewable-fueled technologies, and their use is actively discouraged by many municipal governments. Recently, cleaner gas-fired reciprocating engines have been developed to address these concerns.
Pursue the following links to learn more about:
Read the distributed energy FAQ for more information about the range of DE technologies.
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