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Distributed Generation Distributed Energy Resource (DER) or Distributed Generation (DG) systems are small- scale power generation systems, usually in the range of 3 kW to 20 MW, that produce electricity near a center of demand. They enhance—and in some places provide a local alternative to—large centralized generation facilities such as coal, nuclear or hydropower. DER systems may include the following technologies: • Combined Heat and Power (CHP): These systems recover heat normally wasted in the process of generating electricity and use it to produce one or more of the following: steam, hot water, heating, desiccant dehumidification or cooling. Because they recycle waste heat, CHP systems achieve efficiencies of up to 90 percent.44 Conventional fossil-fuel power plants, on the other hand, only reach average efficiency levels of 33 percent.45 • Micro Combined Heat and Power (MicroCHP): While industrial CHP systems generate heat as a useful by-product of electricity, the opposite is true for MicroCHP systems, which operate (typically at 5 kW or less) in homes or small commercial buildings. The excess electricity these systems generate, which is not immediately used on site, is then sold to the local electric utility. • Microturbines: These systems resemble small combustion turbines, approximately the size of a refrigerator. Microturbines, which usually generate 25 to 500 kW, offer a number of potential advantages over other technologies for small-scale power generation, including lower emissions, lower electricity costs, and—thanks to the ability to use waste fuels—efficiencies of more than 80 percent.46 • Reciprocating Engines: Also called internal combustion engines, reciprocating engines for power generation range from 0.5 kW to 6.5 kW and require fuel (gasoline, natural gas, or diesel), air, compression, and a combustion source to function. When properly treated, these systems can run on fuel generated by waste treatment (methane) and other biofuels. They also make up a large portion of the cooling, heating and power (or cogeneration) market. • Fuel Cells: These systems convert chemical energy in different energy carriers into electricity. A detailed description of hydrogen fuel cells can be found on page 46 of this report. • Photovoltaic Systems: Solar cells convert light into electricity. For a detailed description of this technology see page 36 of this report. • Small Wind Power Systems: Turbines convert wind power into electricity. A detailed description of this technology starts on page 27 of this report. 95PDF Image | Shaping Energy Technology Transition
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