In recent years, as a supplement for conventional large-scale power generation system,
gas distributed generation has got much comprehensive attention. This study reviews the cur-
rent status, incentive policies and barriers of gas distributed generation in Shanghai. Currently,
the gas distributed energy development in Shanghai is facing grim situations: on the one hand,
most of the prime movers are imported from abroad with relaitvely high initial cost, and the
natural gas price increases gradually, which lead to the poor economic performance; on the
other hand, the relevant institution, mechanism and policy frameworks are imperfect, making
gas distributed energy system difficult to fully enjoy its energy saving advantages. However,
considering the huge market potential in Shanghai and successful experiences in some foreign
countries, it is believed that gas distributed generation will be paid more and more attention,
and support the low-carbon transition of the electric power industry in Shanghai.
