Distributed Generation (DG) is not a new concept.  For decades

• Industrial/Commercial consumers have been installing DG facilities as Captive Energy source.

• Power Utilities have been installing DG facilities to supplement (or as an alternative to) grid supply.

DG facilities of Industrial/Commercial consumers offer following benefits

• Reliable and desired quality of electricity supply.

• Assured emergency/peak power.

• Economic benefits (through Cogeneration/Combined Heat and Power schemes).

DG facilities of Power Utilities offer following benefits

• Eliminate the high cost of "last mile access" particularly in rural areas.

• Ability to fulfill universal service obligation even when terrain difficulties precludes the installation of transmission networks.

• Ensure better grid stability and reduce losses.