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Distributed generation is not technically a part of demand side management, but practically it is. Technically, distributed generation is not a part of demand side management because it is a source of energy supply. Practically speaking, however, distributed generation programs face many of the same challenges as conventional demand side programs. To understand why, first consider the two types of distributed generation that are featured on this website:
Solar power: When people and businesses put solar panels on their homes and buildings, this source of generation is distributed geographically. Although no single house or building contributes a large amount of energy compared to a power plant, the combination of all of those solar panels is a significant resource.
Electric vehicles: Future generations of electric vehicles will have the ability to deliver power into the grid. Owners of these vehicles will be able to choose when and at what price they are willing to sell power from their batteries back to the electric utility. Once again, this source of generation is distributed geographically.
Electric utility programs that encourage solar power and electric vehicles are often led by demand side management professionals because substantial customer outreach is involved. Conventional demand side programs have always necessitated such outreach. Supply side work, on the other hand, is more focused on engineering challenges.
There are other types of distributed generation such as fuel cells and combined heat power for commercial and industrial customers, but these technologies are beyond the scope of this website.
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