Until recently, methods of generating power have been discussed in the context of large, centralized power plants. However, with technological advancements, there is a trend towards what is known as ‘distributed generation’. Distributed generation refers to the placement of individual, smaller sized electric generation units at residential, commercial, and industrial sites of use. These small scale power plants, which are primarily powered by natural gas, operate with small gas turbine or combustion engine units, or natural gas fuel cells.Distributed generation can take many forms, from small, low output generators used to back up the
supply of electricity obtained from the centralized electric utilities, to larger, independent generators that supply enough electricity to power an entire factory. Distributed generation is attractive because it offers electricity that is more reliable, more efficient, and cheaper than purchasing power from a centralized utility. Distributed generation also allows for increased local control over the electricity supply, and cuts down on electricity losses during transmission. Below is a discussion of the various forms of natural gas-fired distributed generation.
Natural gas is one of the leading energy sources for distributed generation. Because of the extensive natural gas supply infrastructure and the environmental benefits of using natural gas, it is one of the leading choices for on-site power generation. There are a number of ways in which natural gas may be used on-site to generate electricity. Fuel cells, gas-fired reciprocating engines, industrial natural gas-fired turbines, and microturbines are all popular forms of using natural gas for on-site electricity needs.