Dong Zhen/Shanghai Daily news

Shanghai government announced yesterday that it would improve incentives for local factories and businesses that install an energy-saving power generation system inside their buildings, Shanghai Daily reported.

The system, named Distributed Generation, is based on a small gas-fueled power generation unit. Operators build these units on site, rather than take power from the national grid, which is powered by coal-fired power stations, usually located far away from power users.