At present，energy shortages，pollution and climate change have become increasingly prominent in China. How to improve energy efficiency，restructure conventional energy and renewable electricity，and not only become the major strategic tasks to be completed，but also the important issue of energy resource and environmental economy. Development of distributed power generation industries plays an important role in utilizing scientifically and rationally energy resources，improving the revolution in energy supply，demand，and technology，ensuring energy security，and promoting sustainable economic and social development. In this paper，firstly，literature research route about distributed energy power，technology features and advantage have been reviewed；Secondly，distributed power industry status and policy support system are described from angle of renewable energy using；Thirdly，from legal，and policy，and technology，and market mechanism angle，some existed problems in the course of development about China’s distributed power industry have been analyzed；Again，through analysis to some nations’ distributed power status，and management measures and policy mechanism experience，several revelations have gotten；Last，from views of legal system，strategic planning，policy，reform of energy and power，coordination，interests and market mechanisms，smart grid’s construction and quality standard system，a series of policy recommendations have been put forward about how to develop scientifically and rationally distributed energy generation industry.