International practices in distributed generation

Distributed generation (DG) is related with the use of small generating units installed at strategic points of the electric power system or locations close to load centers. DG can be used in an isolated way, supplying the consumer´s local demand, or integrated into the grid supplying energy to the electrical power system. Distributed generation can run on renewable energy resources, fossil fuels or waste heat. Equipment ranges in size from less than a kilowatt (kW) to tens of megawatts (MW). Distributed generation can meet all or part of a customer´s power needs. If connected to a distribution or transmission system, power can be sold to the utility or a third party. DG and renewable energy sources (RES) have attracted a lot of attention worldwide. Both are considered to be important in improving the security of energy supplies by decreasing the dependency on imported fossil fuels and in reducing the emissions of greenhouse gases (GHGs). The viability of DG and RES depends largely on regulations and stimulation measures that are a matter of political decisions.