The only reason for the construction of transmission and distribution is that it made possible the construction and operation of very efficient large scale plants of 500MW to 600MW or more, so efficient at 38% efficiency that it more than offset the initial costs of what is now about $1,300 per kW for transmission and distribution, not including substations and their operation costs including I squared R losses.

Costs of conventional generation has more than doubled since 2000 from about $1,000 per kW (with little pollution control) to $2,300 per kw today and not including the T&D needed to handle the output. On the other hand the cost of distributed generation from Molten Carbonate Fuel Cells at 47% efficiency and 56% efficiency has decreased by 70% and is estimated to cost $2,000 per kW per kW for the generation where in many cases no transmission or distribution is needed.

Further combined cycle fuel cell/ turbine units called "hybrids" of 40MW in size contemplate efficiencies of up to 70%. Also, the new electrochemical generation eliminates 99% of the toxic pollution of giant coal fired steam turbines and also reduces greenhouse gases significantly if that is relevant and removes unsightly transmission towers and transmission lines snaking through the wilderness and unsightly overhead distribution lines.

Funding a grid improves the economics of dirty generation over clean generation but it is the later that has a promise of far lower adverse environmental impact. It has another significant adverse impact -- it tends to cut off competition in electric power supply. Few can finance a competitive 500 to 600MW conventional power plant but many can invest $1 million or so for distributied generation, particularly if it is to supply the electrical needs for their own business and they are looking to save every dime to help them compete in their product market.