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Distributed Power Generation System
Both families and enterprises need a lot of heat energy in addition to electric energy. Distributed power generation system can substantially improve comprehensive utilization efficiency of energy and is the best solution for chambers, residential estates, hotels and hospitals in big cities and combined heat and power supply in remote residences as well as enterprises with big demand for heat. In Aug. 2000, the State Planning Commission, the State Economic and Trade Commission, the Ministry of Construction and the State Environmental Protection Administration of China jointly issued Regulations on Combined Heat and Power Generation, where they emphasized that the State would vigorously support the total energy system of combined heat, power and cold generation consisting of minitype gas engine sets. With implementation of West-to-East Gas Transfer project, it creates excellent conditions to promote combined heat, power and cold generation system operating on natural gas.

The core equipment of distributed power generation system is the thermoelectric converter. Minitype gas turbine, Stirling engine operating on fuel gas and internal-combustion engine operating on fuel gas are the dominant types of thermoelectric converters for the combine heat and power generation system operating on natural gas. For 1-100kW combined heat and power generation system, Stirling engine is a very ideal and feasible thermoelectric converter. In addition, Stirling engines are more environmentally friendly than other heat engines in respect of noise, vibration, emission, etc., and suitable for applications in densely-populated downtown areas. So it can satisfy the demands of commercial customers with high requirements on environmental quality.

It is forecast that the area of commercialized houses will increase by 80 million m2 during the Tenth Five-Year Plan period in Shanghai, where residences account for 85%. If distributed power generation system is adopted for 2% of the new residences and 15% of the new commercial houses, the application area of the system will be up to 3.16 million m2, with electric output over 94.8MW, heat supply up to 190MW and annual natural gas consumption of 153 million M3. In addition, the use of natural gas will reduce amount of electricity generated from traditional coal-fire power plants. It is estimated to reduce the greenhouse gas CO2 by 0.585 million tons annually, and Nox emission by 2100 tons. In addition, popularization of distributed power generation system in Shanghai will drive industrial development approximating RMB 800-900 million. With popularization of natural gas in the eastern coastal regions, the industry will enjoy a more promising perspective. At present, the Research and Demonstration on Key Technologies of Energy Island for Stirling Engines Using Natural Gas has been incorporated into the Difficult and Key Technological Projects of Shanghai Municipal Science & Technology Commission.