Distributed generation, also called on-site generation or decentralized generation, is the term for generation of electricity from sources that are near the point of consumption, as opposed to centralized generation sources such as large utility-owned power plants.
Centralized generation facilities are widely prevalent in industrialized countries, the vast majority of electricity being generated by centralized coal, natural gas, oil, nuclear, and hydropower plants. While centralized plants have good economies of scale, they usually transmit electricity long distances, requiring more energy to make up for transmission and distribution losses.
Distributed generation systems, which can include on-site renewable energy systems and combined heat and power (CHP)
⇒ FInd out which states have clean distributed generation policies in place with ACEEE's State Energy Efficiency Policy Database.