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In order to address rising energy costs and global climate change, Massachusetts has adopted greenhouse gas reduction goals and implemented programs and policies to promote the clean and efficient use of energy. Despite these efforts, however, the rate of development of distributed generation (DG) in the state pales in comparison to that of traditional centralized generation facilitates. DG is the production of electricity at or near the location where it will be used. Instead of relying on power generated at large, centrally located facilities and distributed over long transmission lines, DG customers use small, modular generators to produce the power they use. DG units can generate electricity using wind turbines, solar panels, fuel cells, gas powered microturbines or other combustion engines. One class of DG, combined heat and power (CHP), has the immediate potential to accelerate DG growth and drastically improve the efficiency of electricity production. But technical and regulatory barriers associated with interconnection to the electricity grid and general projec