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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''').<ref>{{cite journal |last1=Nadeem |first1=Talha Bin |last2=Siddiqui |first2=Mubashir |last3=Khalid |first3=Muhammad |last4=Asif |first4=Muhammad |title=Distributed energy systems: A review of classification, technologies, applications, and policies |journal=Energy Strategy Reviews |date=2023 |volume=48 |pages=101096 |doi=10.1016/j.esr.2023.101096 |doi-access=free|bibcode=2023EneSR..4801096N }}</ref> 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{{Cn|date=November 2024|reason=small diesel generators can be very polluting}} and improve the security of supply.
One of the major issues with the integration of the DER such as solar power, wind power, etc. is the uncertain nature of such electricity resources. This uncertainty can cause a few problems in the distribution system: (i) it makes the supply-demand relationships extremely complex, and requires complicated optimization tools to balance the network, and (ii) it puts higher pressure on the transmission network,<ref>{{Cite journal|last1=Mohammadi Fathabad|first1=Abolhassan|last2=Cheng|first2=Jianqiang|last3=Pan|first3=Kai|last4=Qiu|first4=Feng|date=2020|title=Data-driven Planning for Renewable Distributed Generation in Distribution Systems|url=https://ieeexplore.ieee.org/document/9112707|journal=IEEE Transactions on Power Systems|volume=35|issue=6|pages=4357–4368|doi=10.1109/TPWRS.2020.3001235|s2cid=225734643|issn=1558-0679|via=}}</ref> and (iii) it may cause reverse power flow from the distribution system to transmission system.<ref>{{Cite journal|last1=De Carne|first1=Giovanni|last2=Buticchi|first2=Giampaolo|last3=Zou|first3=Zhixiang|last4=Liserre|first4=Marco|date=July 2018|title=Reverse Power Flow Control in a ST-Fed Distribution Grid|journal=IEEE Transactions on Smart Grid|volume=9|issue=4|pages=3811–3819|doi=10.1109/TSG.2017.2651147|s2cid=49354817|issn=1949-3061|url=https://nbn-resolving.org/urn:nbn:de:gbv:8-publ-14890}}</ref>
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