Distributed small-scale electricity generation from renewable energy sources (distributed renewable electricity generation) has emerged as a technically and financially viable alternative to electricity production from fossil fuels. Distributed renewable electricity generation offers significant promise as a route for decarbonization of the electricity sector, and can help towards achieving the objective of keeping the increase of global average temperature below 2 °C. Distributed renewable electricity generation also enables increased energy access by providing rural electrification and satisfying demand growth.
The increase in the deployment of distributed renewable electricity generation technologies is also changing a century old paradigm of centrally located facilities producing electricity and sending it to consumers through a transmission and distribution network.
This TEC Brief is intended for policymakers and other stakeholders, and provides an overview of distributed renewable electricity generation technologies and offers policy options that can facilitate their deployment and absorption.