"Distributed generation" is something you should know about if you are interested in the future of energy.
This is a short but effective overview of what it is and how it is different than the current system, along with a discussion of the merits.
http://www.dg.history.vt.edu/ch1/introduction.html1. Introduction to Distributed Generation
1.1 What is Distributed Generation?
Distributed generation is an approach that employs small-scale technologies to produce electricity close to the end users of power. DG technologies often consist of modular (and sometimes renewable-energy) generators, and they offer a number of potential benefits. In many cases, distributed generators can provide lower-cost electricity and higher power reliability and security with fewer environmental consequences than can traditional power generators.
In contrast to the use of a few large-scale generating stations located far from load centers--the approach used in the traditional electric power paradigm--DG systems employ numerous, but small plants and can provide power onsite with little reliance on the distribution and transmission grid. DG technologies yield power in capacities that range from a fraction of a kilowatt to about 100 megawatts . Utility-scale generation units generate power in capacities that often reach beyond 1,000 MW.
Classic Electricity Paradigm--Central Power Station Model
The current model for electricity generation and distribution in the United States is dominated by centralized power plants. The power at these plants is typically combustion (coal, oil, and natural) or nuclear generated. Centralized power models, like this, require distribution from the center to outlying consumers. Current substations can be anywhere from 10s to 100s of miles away from the actual users of the power generated. This requires transmission across the distance.
This system of centralized power plants has many disadvantages. In addition to the transmission distance issues, these systems contribute to greenhouse gas emission, the production of nuclear waste, inefficiencies and power loss over the lengthy transmission lines, environmental distribution where the power lines are constructed, and security related issues.
Many of these issues can be mediated through distributed energies. By ...
http://www.dg.history.vt.edu/ch1/introduction.html