When small generators of capacities around 2 - 50 MW output are installed at typical points in the area such that each of these generators supply power to a small number of consumers nearby then it is called distributed generation. The generators may be operated through renewable energy sources such as solar, wind or gas turbines, small hydro or micro turbines as these are most economical choices. Dispersed generation is use of still smaller generating units of less than 500 kW and use for individual houses or small business. The distributed or dispersed generators may be standalone or grid connected depending on the requirement.
Distributed generation proves to be economical as it requires to transmission network and reduced need of distribution equipments. Another advantage is this generation is portable or compact as compared to big power stations located far away from consumers. Also they are modular and relocatable. The fuel cells and microgas turbines are two new types of techniques evolved in distributed generation.
The main challenge is to upgrade existing technology and to promote development, demonstration of new and upcoming technologies for widespread adaptation of distributed generation.
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