ABSTRACT

Distributed generation (DG) is generally thought of as small-scale generation that is used on site and/or connected to the distribution network. Distributed generation development has been driven by technological changes, the availability of inexpensive natural gas, the evolution of electricity competition, and perhaps most of all by the need for extremely reliable electricity supply and combined heat and power (CHP) applications. Distributed generation technologies range from small microturbines and fuel cells to larger reciprocating engines and simple cycle gas turbines. Although DG is not competitive in most applications with grid-supplied power, it has benefits such as increased thermal efficiency in co-generation applications, enhanced reliability, the potential to reduce system losses, the potential to delay or avert new infrastructure investment, and lower emissions compared with traditional coal- and oil-fired technologies.