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A dispersed power source is a small-scale power-generating facility located near a point of power demand or in an individual household in a dispersed manner from other similar power sources. It contrasts with a "concentrated power source" —which is a large-scale power-generating facility that utilizes thermal power, nuclear power, and so on. Dispersed power sources include those utilizing natural energy sources like solar and wind power as well as co-generation systems (comprising fuel cells and gas turbines, for example) supplying heat and electricity simultaneously.
They bring merits such as low electrical-transmission loss, provision of emergency power supply during times of disasters, and reduction of emission of greenhouse gases by alleviating dependence on oil. Accordingly, dispersed power sources are expected to grow in popularity from now onwards.