What does 'distributed generation' refer to?

Distributed generation refers to the electricity generation that occurs from many small sources that are located close to where the power is actually used. This contrasts with centralized generation, which involves large power plants producing electricity that is then transmitted over long distances to reach consumers.

The primary advantage of distributed generation is its ability to provide power directly to consumers, often improving efficiency and reducing transmission losses. This approach also enhances reliability and resilience in the energy grid, as local generation can continue to supply power even if the larger grid experiences issues. Additionally, distributed generation often incorporates renewable energy sources, such as solar panels or wind turbines, contributing to sustainability and decreasing dependence on fossil fuels.

Other options like centralized generation and electricity generation from large power plants describe a traditional energy model focused on large-scale production and long-distance distribution, which does not capture the essence of the decentralized, localized approach of distributed generation. The option referring to generation during peak loads only addresses a specific operational scenario and does not encapsulate the broader concept of distributed generation.