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'''Distributed generation''', also '''distributed energy''', '''on-site generation''' ('''OSG'''),<ref name=EonOsg>{{cite web|title=On Site Generation: Learn more about our onsite renewable energy generation technologies|url=https://www.eonenergy.com/for-your-business/large-energy-users/manage-energy/on-site-generation|publisher=E.ON SE|access-date=17 December 2015}}</ref> or '''district/decentralized energy''', is electrical [[Power generation|generation]] and [[Grid energy storage|storage]] performed by a variety of small, [[Electrical grid|grid]]-connected or distribution system-connected devices referred to as '''distributed energy resources''' ('''DER''').<ref name="DG-virginia-tech">{{cite web |url=http://www.dg.history.vt.edu/ch1/introduction.html |title=Introduction to Distributed Generation |work=[[Virginia Tech]] |year=2007 |access-date=23 October 2017 |archive-date=10 December 2018 |archive-url=https://web.archive.org/web/20181210181948/https://www.dg.history.vt.edu/ch1/introduction.html |url-status=dead }}</ref>
Conventional [[power station]]s, such as [[coal]]-fired, [[combined cycle|gas]], and [[nuclear power]]ed plants, as well as [[hydroelectric]] dams and large-scale [[photovoltaic power station|solar power station]]s, are centralized and often require electric energy to be [[Electric power transmission|transmitted]] over long distances. By contrast, DER systems are decentralized, modular, and more flexible technologies that are located close to the load they serve, albeit having capacities of only 10 [[megawatt]]s (MW) or less. These systems can comprise multiple generation and storage components; in this instance, they are referred to as [[hybrid power]] systems.<ref>{{cite web|url=https://www.atulhost.com/empowering-the-future-with-distributed-energy-resources|title=Empowering the future with distributed energy resources|year=2023}}</ref>
DER systems typically use [[renewable energy]] sources, including [[small hydro]], [[biomass]], [[biogas]], [[solar power]], [[wind power]], and [[geothermal power]], and increasingly play an important role for the [[electric power distribution]] system. A grid-connected device for [[Grid energy storage|electricity storage]] can also be classified as a DER system and is often called a '''distributed energy storage system''' ('''DESS'''). By means of an interface, DER systems can be managed and coordinated within a [[smart grid]]. Distributed generation and storage enables the collection of energy from many sources and may lower environmental impacts and improve the security of supply.
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