A system and method for operating a distributed power generation system comprising one or more Local Production Units (LPPUs) (500) is provided. The method includes the steps of receiving and storing data relating to the operating performance of a plurality of LPPUs (506), receiving and storing data relating to the local power consumption for the plurality of LPPUs (504), determining the available aggregate quantity of excess power generation capacity for the plurality of LPPUs (516) based upon the operating performance data and the power consumption data (506, 504), communicating to at least one power purchasing entity (524) an offer to sell at least part of the available aggregate quantity of excess power generation capacity (516), receiving from at least one power purchasing entity an order to purchase (526), and communicating with the plurality of LPPUs to provide each LPPU with instructions regarding the quantity of power to be produced (528). The system includes means for performing each of these steps.
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