Distributed generation provides the generator/consumer proximity which enables direct connection between generating and consuming centers.

Directive 2009/72/EC concerning common rules for the internal market in electricity, lays down direct power lines (as referred to in Article 42 of Law 24/2013) and closed grids for industrial, commercial or shared services areas. European directives on renewable and energy efficiency regulates construction with regard to auto-consumption, storage and net balance smart meters.

The development of these concepts shows how the combination of shared storage self-consumption, micro grids and charging points for electric vehicles allow to gather various sources of generation and consumption locally interconnected.

Buying and selling renewable energy associated with a close generation facility and connected to the consumer through a direct power line is the best definition of the PPA (Power Purchase Agreement).

Energy innovation is increasingly addressed to empower the consumer so that they can manage the demand. The mayor benefits of distributed energy are savings and efficiency since it helps open competition to millions of consumers with the right to constitute the center of the energy system.

Lazard’s 2017 Report on Energy Costs shows how falling costs of renewable energies, mainly wind and solar photovoltaic, make them competitive with coal, nuclear and gas. That would explain how coal, nuclear and big oil industries have become to invest in renewable energies.

On a research showcased at the Bonn Climate Change Conference, the Finnish Lappeenranta University of Technology states that reaching a global 100% renewable energy system is a tangible reality. A 100% renewable electricity mix in 2050, which combines wind power, solar power, hydropower, and biomass generation, will have an average cost of €52MWh, will reduce more than half the energy losses in the grids, will eradicate emissions and will support 36 million jobs, which doubles present numbers.

The expansion of renewable energies by means of distributed generation is cheaper than keeping the centralized power.

Although not included in our legal law, the benefits of distributed generation of energy are included in a number of studies:

        • Positive externalities balance by reducing energy imports, CO2 emissions and lower energy prices.

        • Allows to adjust real-time supply and demand of energy and control peak demand implementing smart systems for its modulation and flexibility.

        • It guarantees security of supply against extreme climatic variations and tensions in the electrical system, acting as a reliable power reserve.

        • An increased use of renewable energies subsequently causes cost reduction. Its efficiency increases in collective facilities such as shared consumption, micro-grids and virtual generation power plants.

        • Implementing local storage allows a massive integration of renewable energies in the urban planning and transport by promoting self-consumption in buildings and the use electric vehicles without backup power.

        • It is the best tool for an electrical system based on the management of the demand through smart applications in facilities with distributed renewable energies.

        • To get generation closer to consuming is the main advantage of distributed generation of energy. It allows cost and investment reduction in the electrical system and losses in the power grid, which result in less emissions and a higher energy efficiency since only the energy needed is used.

        • The distributed generation turns the consumer into the heart of the system since they are enabled to manage their own demand and empowers them to generate, storage, use and sell their own renewable energy.

        • The distributed generation has a direct impact on the local economic development and employment. Balancing the power generation has a subsequent decisive influence on regional planning and social cohesion