Distributed generators (DGs) are being widely deployed in today’s power grid. These energy sources are highly variable posing practical challenges for deployment and grid management. In this paper, a novel scalable distributed power dispatch strategy is proposed to effectively manage DGs at the distribution substation level, capitalizing on the recent push to cyber-enable power grid operations. We demonstrate how the inherent separability of the power dispatch problem allows the use of dual decomposition that enables every participating DG to locally compute its dispatch strategy based on simple broadcast data by the utility. Results and comparisons indicate that the DGs are able to rapidly converge to an optimal economical dispatch vector with significantly less concentrated computational effort and communication overhead, promoting security and privacy.