Distributed (co)generation (DG) represents an alternative paradigm of energy supply and the opportunity for significant CO2 emission reductions. This paper investigates the adoption of the DG technology of internal combustion (IC) engine cogeneration in the Netherlands and UK froth 1985-1998. This detailed comparison was motivated to understand why the Netherlands installed 20 tithes as many units and 40 tithes as snitch DG capacity (per capita) compared to the UK. The primary finding of this study emphasizes the win-win partnerships between DG adopters and utilities. While both governments promoted DG as part of their CO, reduction goals, only distribution utilities in the Netherlands were primed to support greater DG penetration. Crucially, Netherlands utilities offered high electricity buy-back rates which enabled innovative utilization of DG. Flexible operation modes allowed investment in larger units, benefiting froth economies of scale due to fixed components in maintenance costs, and extended DG use to the much larger set of sites with limited electricity base-loads. The win-win partnerships between distribution utilities and DG adopters for cost savings also facilitated improved management of the electricity network. A final consequence was a virtuous circle of maintenance cost reductions froth geographic concentration of DG units, resulting in improved returns and hence snore DG unit sales.