A power distribution/generation system is disclosed for supplying electrical power to a number of sites (32, 33, 34), one or more of which has a generator (53, 1) such as a Stirling engine (1) which is capable of generating electrical power. The generators (53, 1) are linked together on a local network that is connectable to an external power grid (31). A controller (35) can hold the distribution of power so that a site is supplied with electrical power from the local network if its power demand exceeds the power generated by the generators in that network. However, if the total power demand of all the sites in the network exceeds the total power available from the generators in that network, then the controller (35) causes power to be drawn from the grid (31) instead.