1. Electricity is a dynamic phenomenon in that it is consumed as it is generated, some consumed in the transmission and distribution wires, most is consumed to operate motors or heaters or lighting or make chemicals in batteries. The electricity is not stored in batteries, the chemicals are stored in batteries. So it makes no sense to generate electricity without a purpose.

2. Distributed generation can benefit the environment if its use reduces the amount of electricity that must be generated at centralized power plants, in turn can reduce the environmental impacts of centralized generation.

3. However, distributed generation has negative environmental impacts:

>> Distributed generation systems require a “footprint” (they take up space), and because they are located closer to the end-user, some distributed generation systems might be unpleasant to the eye or cause land-use concerns or public nuisances.

>> Distributed generation technologies that involve combustion—particularly burning fossil fuels—can produce many of the same types of impacts as larger fossil-fuel-fired power plants, such as air pollution. These impacts may be smaller in scale than the impacts from a large power plant, but may also be closer to populated areas.

>> Some distributed generation technologies, such as waste incineration, biomass combustion, and combined heat and power, may require water for steam generation or cooling.

>> Distributed generation systems that use combustion may be less efficient than centralized power plants due to efficiencies of scale.

>> Distributed energy technologies may cause some negative environmental issues at the end of their useful life when they are replaced or removed.