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How does distributed energy work?

Published in Energy Systems 3 mins read

Distributed energy (DE) works by generating power from various sources located close to where it's used, rather than relying solely on large, centralized power plants. These distributed energy resources (DERs) can either operate independently as microgrids or feed energy back into the main electric grid.

Here's a breakdown of how distributed energy systems function:

  • Decentralized Generation: Instead of a single, large power plant, DE uses multiple smaller-scale energy generators. These can be located at homes, businesses, or within communities.

  • Variety of Sources: DERs encompass a wide range of technologies:

    • Renewable Energy: Solar panels, wind turbines, biomass generators.
    • Combined Heat and Power (CHP): Systems that generate electricity and capture waste heat for heating or cooling.
    • Fuel Cells: Devices that convert chemical energy into electricity.
    • Small-Scale Generators: Diesel generators, natural gas generators.
  • Grid Connection or Islanding: DERs can operate in two primary modes:

    • Grid-Connected: DERs feed excess electricity back into the central grid, allowing users to potentially offset their energy costs and contribute to the overall grid supply.
    • Islanded (Microgrid): DERs can disconnect from the main grid and operate independently as a microgrid, providing power to a specific area or building during grid outages or in remote locations.
  • Size and Scale: DERs range in size from small-scale generators with less than 1 megawatt (MW) of capacity to utility-scale generators of up to 10 MW.

  • Energy Management Systems (EMS): These systems optimize the operation of DERs by monitoring energy production, consumption, and grid conditions. EMS can help balance supply and demand, improve energy efficiency, and reduce costs.

  • Two-Way Power Flow: Unlike traditional power grids with one-way power flow from central generators to consumers, distributed energy enables two-way power flow. This means electricity can flow from DERs back into the grid, changing the traditional energy distribution model.

Example Scenario:

Imagine a community with solar panels on rooftops and a small wind turbine. During the day, the solar panels generate electricity, powering homes and businesses. Excess electricity is fed back into the grid. At night, or when the wind isn't blowing, the community draws electricity from the grid. In the event of a power outage, the community can disconnect from the main grid and operate as a microgrid, relying on battery storage and other DERs to provide power.

Benefits of Distributed Energy:

  • Increased Grid Resilience: Reduces vulnerability to large-scale outages.
  • Reduced Transmission Losses: Locating generation closer to consumption minimizes energy loss during transmission.
  • Enhanced Energy Security: Diversifies energy sources and reduces reliance on centralized power plants.
  • Lower Carbon Emissions: Promotes the use of renewable energy sources.
  • Cost Savings: Reduces energy costs through on-site generation and net metering.