ABSTRACT
This chapter describes how to save money by using distributed generation. Distributed generation is technically defined as the sequential production of electrical or mechanical power and useful heat from the same primary energy source of fuel. Distributed generation is a valuable alterative to the utility electric rate schedule if it is properly used. The ideal situation for the efficient use of distributed generation is where both electricity and process heat are required. In this step, the initial equipment costs are determined by: Coordination of the distributed generation project with the local utility must be executed so that interface problems between the utility and the distributed generation equipment do not occur. Whether distributed generation is a good investment or not depends upon electrical usage, and current electrical costs. The basic reason for a utility's reluctance to have its customers utilize distributed generation is simple-lost revenue.
