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Our nation's electric power system was designed to convey electricity from central power-generating stations to the transmission system, the distribution system, and, eventually, homes and businesses. This architecture has served the power needs of most of the national well for decades.
However, some consumers—such as those in remote mountain or rural locations—were left out. And some businesses—such as those that require high-quality or highly reliable power—found that their needs were not served by the grid's offerings. In the past, these groups used on-site generation to substitute for the electric grid.
Today, a new option has emerged—one that takes advantage of both grid and on-site power. By interconnecting distributed generation with the electric power system, electricity consumers and utilities can reap the rewards of both systems.
Interconnection is the physical connection of a distributed energy resource with the electric power system. Generally, interconnection allows two-way power flow on the electric distribution system. Through interconnection, distributed generation is able to contribute electricity to the local power grid, and homes and businesses are able to get electricity from either or both.
The specifics of interconnection, however, are more elusive. At the present time, interconnection requirements vary greatly from state to state, town to town, utility to utility, and even project to project. This variability often makes the process of securing interconnection approval time-consuming and expensive.
Although the interconnection of distributed generation presents many challenges, when done correctly, it can produce a myriad of benefits for both the grid and the power consumer.
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