Distributed generation (DG) refers to the generation of electricity from multiple small-scale power sources located near the end-users or within the distribution network. Unlike traditional centralized power plants, DG systems are decentralized and distributed throughout the grid.

1. Energy Generation: The primary function of distributed generation is to produce electricity locally, contributing to the overall energy supply in the region.
2. Peak Load Shaving: DG systems can help reduce peak demand on the grid during periods of high energy consumption, thereby stabilizing the grid and potentially lowering electricity prices.
3. Demand Response: DG systems can participate in demand response programs, where they adjust their output based on grid signals to support grid stability during peak demand or emergencies.
4. Grid Support and Ancillary Services: Some DG systems can provide ancillary services to the grid, such as frequency regulation, voltage support, and reactive power compensation, enhancing grid stability and reliability.
5. Microgrids: DG systems can be integrated into microgrids, which are small-scale, localized grids that can operate independently or in connection with the main grid. Microgrids can enhance energy security and resilience in specific areas.
6. Renewable Energy Integration: DG systems, particularly those based on renewable sources, help integrate green energy into the grid and reduce dependence on fossil fuels, contributing to sustainability goals.
7. Decentralization and Energy Independence: DG promotes decentralization of power generation, empowering communities and organizations to become more energy-independent and self-sufficient.

Overall, distributed generation plays a crucial role in modernizing the electricity grid, promoting renewable energy adoption, and increasing grid resiliency, flexibility, and efficiency. It complements centralized power generation and fosters a more diverse, sustainable, and reliable energy landscape.