Distributed Generation: Benefits and Barriers

Distributed generation configured as combined heat and power(CHP)/district energy systems, if implemented widely, will provide sub-stantial improvements in energy efficiency and dramatic reductions inemissions of pollutants including greenhouse gases (notably carbon diox-ide, the major contributor to global climate change). These efficiency andemission benefits will not cause economic belt-tightening and, in fact, canbe obtained while capturing economic benefits for energy consumers.However, the realization of the full potential of the benefits, anddoing so in a timely manner, requires that existing institutional barriersare recognized and effectively eliminated[1].Distributed generation can take a variety of forms, utilizing diversetechnologies and being deployed in a very wide range of capacities.There is also a broad range of costs associated with the different tech-nologies. And while some technologies are still undergoing extensivetechnological development, other technologies are relatively mature, ex-hibiting an extensive past history of successful implementation. In thisarticle, distributed generation is described solely from the perspective ofa developer/owner/operator of dozens of CHP/district energy systems,which in fact represent one of the distinct technologies employed as dis-tributed generation.