"Distributed Generation" has become the "buzz" word of an electric utility industry facing deregulation. Many industrial facilities utilize equipment in distributed installations to serve the needs of a thermal host through the capture of exhaust energy in a heat recovery steam generator. The electrical power generated is then sold as a "side benefit" to the cost-effective supply of high quality thermal energy.

Distributed generation is desirable for many different reasons, each with unique characteristics of the product. Many years of experience in the distributed generation market has helped Stewart & Stevenson to define a range of product features that are crucial to most any application. The following paper will highlight a few of these applications. The paper will also examine the range of products currently available and in development. Finally, we will survey the additional services offered by Stewart & Stevenson to meet the needs of a rapidly changing power generation industry.

SIGNIFICANT FEATURES FOR DISTRIBUTED GENERATION Power generation systems must offer a broad range of power outputs and operating characteristics to meet the various needs of prime power, peaking, peak shaving, and continuous base-load operation. As well, they should be natural gas fueled for economy and offer dual fuel capability for areas subject to gas curtailment. Systems must exhibit fuel efficiency, low emissions, and low noise to avoid difficulty in permitting; in short, designed to be a "good neighbor". Portable or transportable systems allow for cost-effective relocation as power needs change. Full-load factory testing avoids initial component failures and inadequate performance. Modular packaging of the main unit and ancillary systems, including controls and switchgear, equates to fast installation with minimal site work to bring power on line quickly, cost effectively, and avoiding extensive site rework. Desirable features of distributed generation also include:

• Unattended operation with full equipment protection and provisions for remote dispatch and supervisory control.

• A small footprint allowing for installation flexibility and parallel construction of permanent generating resources.

• High reliability and availability with first-class service and replacement parts to maximize revenues for customer satisfaction.

• Reduced line losses and disturbances, normally associated with long transmission and distribution systems.

• High quality power suitable for "droop" mode operation in parallel with the local utility, or " Isochronous" operation for isolated bus applications.

• Fast power response for load-following applications.

• Flexible financing or leasing options for short term needs.

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