Distributed Energy Resources vs Centralized Power Plants

Distributed Energy Resources (DERs) and Centralized Power Plants (CPPs) are two ways of generating and supplying electricity. Both have their advantages and disadvantages, and both are required to meet the ever-increasing global energy demands. In this blog post, we'll compare DERs vs CPPs and see which one stands out.

What are DERs?

DERs are a small-scale power generation unit that has the capacity to produce electricity close to where it's consumed. They include solar panels, wind turbines, and energy storage systems. DERs are independent of the main grid and can operate autonomously. They are mostly used in remote locations, such as off-grid communities, but are becoming popular in urban areas as well.

What are CPPs?

CPPs, on the other hand, are large-scale power plants that generate electricity and distribute it through the main grid network. They usually burn fossil fuels, such as coal, natural gas, or oil, to produce electricity. CPPs are usually located far away from urban areas where they are consumed, which requires transmission lines to transport electricity over long distances.

Efficiency

DERs have a higher efficiency than CPPs. DERs are small-scale and can produce electricity close to where it's consumed, which eliminates the need for transmission lines. On the other hand, CPPs require transmission lines that can cause energy losses of up to 10% during transmission. According to a report by the National Renewable Energy Laboratory, DERs can have an efficiency of up to 80%, while CPPs have an efficiency of around 33%.

Reliability

CPPs are more reliable than DERs. CPPs have the capacity to generate a large amount of electricity, which ensures a constant supply of energy to the grid. DERs, on the other hand, are dependent on weather conditions, such as wind or sun, which can affect their output. A study by the International Energy Agency shows that CPPs have a capacity factor of around 60%, while DERs have a capacity factor of around 30%.

Cost

DERs are cheaper than CPPs. DERs have lower installation costs, and their production costs are decreasing each year due to the declining cost of solar panels and wind turbines. CPPs, on the other hand, require a large initial investment and have higher production costs as fossil fuels become scarcer. According to a report by the Rocky Mountain Institute, in many cases, DERs can produce electricity at a lower cost than CPPs.

Conclusion

Both DERs and CPPs have their advantages and disadvantages, and both are required to meet the ever-increasing global energy demands. DERs have a higher efficiency and a lower cost, while CPPs are more reliable. In summary, DERs are a promising source of energy for the future, and they will probably gain more prominence as their costs continue to decrease.

References

• National Renewable Energy Laboratory. (2018) Distributed Energy Resources Are Coming — Here's What You Need to Know.

• International Energy Agency. (2020) Energy technology perspectives 2020.

• Rocky Mountain Institute. (2019) Breaking Down Barriers to Distributed Energy Resources.