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Use of distributed energy (DE) has the potential to produce benefits on both sides of the electric meter.
Consumer-Side Benefits
- Better power reliability and quality
- Lower energy costs
- More choice in energy supply options
- Greater predictability of energy costs (lower financial risk) with renewable energy systems
- Energy and load management
- Combined heat and power capabilities
- Environmental benefits, including cleaner, quieter operation and reduced emissions
- Faster response to new power demands because capacity additions can be made more quickly
Grid-Side Benefits
- Reduced energy losses in transmission lines
- Reduced upstream congestion on transmission lines
- Reduced or deferred infrastructure (line and substation) upgrades
- Optimal use of existing grid assets, including the potential to free up transmission assets for increased wheeling capacity
- Less capital tied up in unproductive assets because the modular nature of distributed generators means capacity additions and reductions can be made in small increments, closely matched with demand, instead of constructing central power plants sized to meet estimated future demand
- Improved grid reliability
- Higher energy conversion efficiencies than central generation
- Faster permitting than transmission line upgrades
- Ancillary benefits, including voltage support and stability, contingency reserves, and black start capability
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