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How ‘distributed generation’ could help in the event of a grid collapse

The nation’s grid instability is a huge vulnerability. Distributed generation can help, one stakeholder tells Tech Brew.

Image of rooftop solar panels against a city skyline.

Koiguo/Getty Images

3 min read

Hackers nearly taking over US energy plants. Federal cybersecurity groups thwarting the attacks. These alarming events aren’t plot points in a geopolitical thriller—this actually happened in 2022 when operators connected to Russia hacked into the US energy supply. Such an attack would have left everyday Americans without power and potentially no way to get it.

That is, unless they had distributed generation systems on or near their homes and businesses. Distributed generation is power at or near the location where it’s being consumed, like residential solar or heat pumps. It can also be solar panels on the roofs of commercial buildings that help power their business operations.

At a time when the US grid is under a lot of strain from excess demand and fluctuating supply, distributed generation stands to be an impactful solution, according to Richard Dovere, CEO of Dispatch Energy, which designs behind-the-meter renewable energy systems.

According to Dovere, one of the “best applications of distributed generation” is helping utilities avoid pricey infrastructure updates, by incentivizing consumers to invest in distributed generation resources like rooftop solar that increase resiliency when the grid is experiencing outages.

“Utilities are regulated monopolies, but they have an obligation to serve their customers reliably,” Dovere told Tech Brew. “And they get into a lot of trouble when they don’t, so they’re supposed to appropriately invest in a resilient infrastructure.”

And in a crisis situation like the one that nearly occurred in 2022, distributed generation could be a literal lifesaver.

“Our grid stability is a major vulnerability,” Dovere said. “If your power goes out and your grandmother’s on an oxygen machine, I don’t think you care about the [internal rate of return] of the [power] system.”

Dovere added that the Trump administration is using renewable energy resources as a “punching bag” by phasing out tax credits for solar energy. The administration has favored geothermal and nuclear energy, and many Republicans in Congress have pushed for an “all-of-the-above” energy strategy.

Dovere told Tech Brew that regardless of price, distributed solar is the best way “to service the largest amount of people to provide them at least some modicum of power.”

“Getting rid of solar renewable tax credits makes it more expensive,” Dovere said, but “people need the power.”

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Keep up with the innovative tech transforming business

Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.