Distributed Generation (DG) describes decentralized energy generated at the consumption site. DG is usually small mall-scale in nature and connected at low- or medium voltage on the distribution network.
There are various types of DG technologies, however, Solar PV is the most common. Some other technologies include diesel generators, microturbines, mini hydro systems, waste to energy, biogas and combined heat and power (CHP).
The benefits of DG include:
- Reduced transmission and distribution losses
- Increases energy security
- Cost savings for customers
- Mostly funded from private capital
- Reduced environmental impacts
- Improves grid resilience
The challenges with DG include:
- It may have negative impacts on utility’s revenues
- Technical safety and power quality concerns
- Hosting capacity of DG within distribution network constraints
- Utility staff capacity
Utility risks can be addressed through the application of suitable DG tariffs and technical standards. There also needs to be regulatory frameworks in place to specifically address DG.
Reach out to the DG helpdesk by emailing: dgsupport@sustainable.org.za
Countries in the Sub-Saharan Africa region.
Net metering credits are often a one-to-one exchange; a kilowatt-hour (kWh) produced by your solar panels is valued the same as a kWh provided by the grid.
Net billing is when energy is sold to the utility at a wholesale rate. At the end of the billing cycle a DG (Distributed Generation) customer is charged for the difference between generation credits and consumption debits. The export credit is usually lower than the import credit.
The programme prioritises solar PV as it is the most prevalent DG technology used. Despite solar PV being the focus, countries will find that the assistance provided in the programme allows for ease of integration with other technologies.
