The term "Distributed Generation," which is currently used to refer to small-scale energy production, is relatively new in the literature on electricity markets in the field of economics, although the underlying notion is not. Distributed generating was not the exception but the rule in the early days of power production. The original power plants only provided electricity to people living nearby the generation site. The supply voltage and the maximum distance between generator and consumer were both constrained by the DC foundation of the earliest grids. Utilizing batteries that could be directly connected to the DC grid as local storage, it was possible to partially balance supply and demand. Local storage is making a comeback, along with small-scale generation.
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