Gas-fueled distributed generation and combined heat and power: Driving forces for beneficial market growth

Fuel-based Distributed Generation (DG) technologies are well-established, but the markets and drivers for customer-sited DG are starting to change. While renewable DG options are becoming mature, cost-effective, and widely deployed, gas-fueled DG and Combined Heat and Power (CHP) systems are positioned for growth. DG and CHP installations fueled by natural gas can help utilities and states meet resiliency, emissions, and energy-efficiency goals while supporting electric utilities through locational benefits that relieve grid congestion and defer transmission and distribution investments. Additionally, packaged CHP offerings will reach new potential customers with standardized equipment, simplified installation processes, and flexible financing options. As renewable DG technologies mature and proliferate, gas-fueled DG and CHP deployments will continue to grow, playing vital roles for utilities and their customers.

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