Distributed Generation

• The Natural Gas Alternative

  Propane and heating oil systems may be replaced with the natural gas lower cost alternative. Natural gas production wells and pipelines can provide fuel for generators and heating. Diesel generators can be replaced with natural gas fueled units that produce much less carbon and operate more economically.

• Combined Heat and Power Efficiency

  Efficient combined heat and power systems fueled by natural gas and/or hydrogen can provide lower cost electricity and heat to buildings and communities. Natural gas as fuel produces lower emissions and the waste-heat from combustion can be used to heat buildings and processes.

For natural gas or other distributed generation projects to be viable for Tribes, the following general characteristics and circumstances must be present:

• A source of low-cost fuel must be present by means of production wells, biomass, interstate or intrastate pipelines, or local natural gas distribution system.
• A distribution network and market for the electricity produced from the generators.
• Favorable regulatory framework for interconnection to the grid and net metering
• Expertise to operate generation and distribution systems.
• A business entity to handle billing, accounting, and operations.
• Above average energy costs, unreliable power, and a desire for energy independence.

The Division of Energy and Mineral Development provides project assistance to Tribes and individuals to develop distributed generation on their trust land. Learn more about how we can help below.