What is the main advantage of distributed generation?

The main advantage of distributed generation is that it reduces energy losses by generating electricity close to the point of use. This approach minimizes the distance that electricity must travel through the transmission and distribution networks, thereby decreasing line losses that occur over long distances. Additionally, generating power near consumption sites enhances efficiency and can lead to improved reliability and resilience of the power supply.

By providing energy closer to where it is used, distributed generation can also incorporate renewable energy sources like solar panels and wind turbines, further promoting sustainability and reducing reliance on centralized, fossil fuel-based power plants. This localized approach not only optimizes energy delivery but also empowers consumers to have a more active role in their energy production and consumption. Consequently, distributed generation sharply contrasts with centralized models, which can often lead to higher transmission costs and increased energy losses.