Introduction

Distributed generation (DG) – the generation of electricity and/or heating close to the point of use – is making a comeback. While a century ago most of the world’s inhabitants were responsible for their own lighting and heating, the last 100 years has seen a steady shift – especially in developed countries – to centralized power generation. However, recent changes in technology and regulations, and an increasing concern over the environmental impacts of large-scale power plants, have driven new interest – and investment – in DG. Businesses are realizing that DG offers unique benefits and challenges to both end-users and suppliers of energy.