Improving Energy Supply Efficiency – A Case for Distributed Generation

Emerging microscale distributed energy technologies offer the opportunity for transformation to a more efficient and sustainable energy future. This will be achieved by delivering energy services from technologies that convert local intermittent renewable energy resources (eg wind, solar, wave), and small, silent generators that produce both heat and power from a range of locally available fuel stores. In particular, distributed fuel based generators can provide firm generation capacity at higher overall supply efficiency than central generation, through heat recovery and the elimination of transmission and distribution losses. There is a need to plan for the impact of these technologies now, because much of the existing electrical supply infrastructure is in need of upgrading or replacement. New microgenerator technologies will become competitive over the next few years, and will affect the economics of system upgrades being carried out now.