Stationary power generation historically started as distributed generation near the user, with the configuration of a very open market, where a lot of small competing utilities were offering electricity to the customers. At a second time it became a `monopolistic' business because of technical reasons. Big steam turbines and electric generators, allowing better efficiencies, were more conveniently installed in very large power plants, necessarily located in sites far away from where the power was needed, and the transmission losses were bounded by AC high voltage technology. The Governments were, therefore, trying to balance the power of monopolies, that were limiting the economical development of the countries, by strengthening the concept of electrical energy price public control and, alternatively, by establishing rules to allow a free flow of electricity from one region to the other, or taking direct control through ownership of big and small utilities. The most effective way of making the electric energy system competitive has proved to be the opening of a partial competition in the generation field by forcing the utilities to compare the cost of their energy, produced with new centralised plants, to the price of the available energy, coming from combined heat and power dispersed generators. In fact, with reference to this cost, all the peculiar features of large central stations and dispersed generators were taken into account, like the widespread use of natural gas, the investment risk reduction with single smaller increments of capacity, the transmission and distribution siting difficulties and high costs, the improved system reliability, and, finally, the high quality electric power. Fuel Cells are a recently become available technology for distributed electrical energy production, because they share the main typical aspects, relevant for a distributed power system, like compatibility with other modular subsystem packages, fully automation possibility, very low noise and emissions release, high efficiency both directly as fuel cell (38-55%) and in integrated cycles (50-65% with fossil fuels), delivered `power quality' and reliability. Focus is principally kept on the impact fuel cells could have on electrical grid management and control, for their voltage support and active filtering capabilities, for their response speed and for quick load connection capabilities. The cost for the moment is high, but some technology, like phosphoric acid, is in the market entry phase. Cost analysis for the main subsystems, that is fuel cell stacks, fuel processors, and power electronics and controls, indicates that the prices will be driven down to the required levels both through technology refinements and increase of production volumes. Anyhow, a new phase is beginning, where centralised power plants are facing the competition of distributed generators, like fuel cells, small gas turbines and internal combustion engines, and of other renewable energy generators, like photovoltaics and wind generators. They all are modular, dispersed throughout the utility distribution system to provide power closer to end user, and are not in competition with existing transmission and distribution systems, but they improve the systems' utilisation. The plants will initially be directly owned and operated by gas or energy distributors, and the customers could easily supersede their mistrusts by only paying for the energy they are really utilising, leaving away the worries about the investment costs and the risks of a bad operation. An `intelligent grid', delivering high quality electrical energy to millions of electrical household consumers, which, a second later, become non-polluting energy producers, appears to be giving a very relevant contribution to `the town of the future', envisaged also by the European Commission, where the quality of our lives is mainly depending on the quality of the energy.
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