The sustainable energy transition taking place in the 21st century requires a major revamping of the energy sector. Improvements are required not only in terms of the resources and technologies used for power generation but also in the transmission and distribution system. Distributed generation offers efficiency, flexibility, and economy, and is thus regarded as an integral part of a sustainable energy future. It is estimated that since 2010, over 180 mil. The sustainable energy transition taking place in the 21st century requires a major revamping of the energy sector. Improvements are required not only in terms of the resources and technologies used for power generation but also in the transmission and distribution system. Distributed generation offers efficiency, flexibility, and economy, and is thus regarded as an integral part of a sustainable energy future. It is estimated that since 2010, over 180 million off-grid solar systems have been installed including 30 million solar home systems. The article concludes that support policies play a critical role in the promotion of DES. Since 2010, the number of countries with distributed generation policies has increased by almost 100%. This article presents a thorough analysis of distributed energy systems (DES) with regard to the fundamental characteristics of these systems, as well as their categorization, application, and regulation. It outlines and highlights the key characteristics of the energy technologies that are currently in use for distributed generation. Furthermore, significant aspects of a variety of DES projects from across the globe are discussed and analyzed to formulate a globalized visualization of DES technologies their challenges, potential solution, and policies.••••Comprehensive review of distributed energy systems (DES) in terms of classifications, technologies, applications, and policies.••Discussion on the DES policy landscape for the developed, the developing and the emerging economies.••Reflection on the challenges facing DES and the prospective solutions.BuildingsCombine heating and powerDistributed energy systemsEnergy policyGreenhouse gasesOff-gridPhotovoltaicRenewable energyAEDB Alternative Energy Development BoardBPS Biofuel Production SourceBC Brayton CycleCCHP Combine Cooling, Heating, and PowerCCL Climate Change LevyCNY Energy is one of the main driving forces behind modern infrastructure and advancements. All aspects of life including household, industry, transportation, agriculture, health, education, and entertainment are becoming increasingly dependent on energy. In the wake of factors like growth in population, urbanization, and socio-economic development, global energy demand is experiencing rapid growth. Almost 80% of the global energy supplies are met through fossil fuels. The fossil fuels dominant energy scenario faces many challenges. Contrary to growing energy demand, conventional fossil fuel reserves are experiencing a depleting trend. Energy prices frequently fluctuate posing challenges for the masses, especially in developing countries. There are also energy security risks associated with supplies from geopolitically unstable countries and regions. Climate change is another major challenge associated with the energy landscape since the use of fossil fuels is regarded to be the prime source of greenhouse gas emissions [,,, ].Energy supply infrastructure has traditionally relied on a centralized approach. Power plants, for example, are typically designed to provide electricity to large population bases, sometimes even thousands of kilometers away, employing a complex transmission and distribution system. Large-scale centralized energy systems are not only expensive to develop and maintain, but they also face m.