Distributed, or decentralized, power generation involves locating sources of power near demand. Fuel cell power plants are well suited for distributed generation.
Distributed generation powered by fuel cell systems could mean:
In the near future, fuel cell generators won't replace conventional power plants, but will be used in conjunction with the grid. If the power goes out, the fuel cell generator will kick in.
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Energy companies can use fuel cells to minimize system load during peak hours, reducing energy costs for all customers. The fuel cell generator could also be used to supplement the grid power on a daily basis. In some situations, heat from the generator can be used for water and space heating - an approach that's far more efficient than the current power grid.