An economic evaluation of distributed elecricity generation technologies

Distributed generation, the small-scale production of electricity at or near customers' homes and businesses, has the potential to improve the reliability of the power supply, reduce the cost of electricity, and lower emissions of air pollutants. The high price of electricity in certain regions and problems with emissions from older power plants have stimulated interest in alternatives to traditional utility-supplied power. Distributed generation could provide benefits in all of those areas. Energy legislation will encourage wider use of distributed generation. This paper explores the context in which policymakers may be addressing distributed generation issues in the near future