The development and commercialization of small power plants is quickly gathering momentum. Two microturbine manufacturers are accepting commercial orders, as is one fuel cell company. More than two dozen companies in the U.S. alone are poised to commercialize new small power plant technologies, including microturbines, fuel cells, and Stirling engines. Many steps are required to transform these new technologies into full-service energy solutions. This report focuses on two of these steps: creating the hardware itself, and developing modular add-ons such as thermal recovery systems to provide superior service and to allow product differentiation in an increasingly crowded marketplace. Many companies are entering joint ventures, strategic alliances, and venture capital investments as a means of staking out turf in what is expected by some to be the next big shift in energy markets. (DE-1; December 1997; 55 pages)