EnergyBiz - November/December 2007 - (Page 48)

» GuIDe&souRCeBook Dealing with Distributed Generation utilitiES ArE tEChnologiCAlly rEAdy by wArrEn CAuSEy GeNeratIoN teChNoloGy has evolved considerably since Thomas Edison developed the prototype large-scale models to drive his utility enterprises more than 100 years ago. Those were direct-current models, but they set the pattern for utilities – large, centrally located generators feeding power through transmission and distribution lines to businesses and homes. That model expanded rapidly, evolved to alternating current, and worked well for more than 100 years. It still predominates worldwide. As information technology came to the fore in the 1970s and later, large-scale software systems were employed to improve efficiency and productivity, including such things as asset management, preventive maintenance, work management, document management and regulatory reporting. These were incremental steps in improving the original Edison-inspired model. Today, however, a new generation technology seems to be emerging after a long time in the embryo stage – distributed generation. Utilities must adopt another new set of technologies to make distributed generation use widespread. The first co-generation plant, burning garbage to generate steam and electricity, began operation in downtown Nashville, Tenn., in 1974. Since then many more have been developed and installed. Limited wind- and solar-powered systems have been in place for many years. HOME OR Today, however, political, regulatory COMMERCIAL and social forces are requiring utilities CONVENTIONAL GENERATORS to embrace distributed generation and develop the computer systems to maintain reliability and stability on their grids, while accommodating distributed generation on a much wider scale. A recent Sierra Energy Group survey found that distributed generation already is much more widespread than many might have thought. The survey of 150 utilities found that 80 percent of investor-owned utilities, 70 percent of municipal utilities and about 50 percent of co-operatives already have various types of distributed generation attached to their local distribution – not transmission – grids. (GENEraTION TEchNOlOGIES) The distributed generation already attached is eclectic. It includes combined cycle gas, fuel cells, gas-fired rotary units, gas generators, hydro, landfill methane, microturbines, diesel reciprocators, gas reciprocators, small turbines, tidal units and trash-burning facilities. Wind and solar are the largest components of existing distributed generation installations. Although non-hydroelectric contributions of total U.S. electric demand is still as small as 2.3 percent, according to the latest Department of Energy figures, the current political climate is to push these technologies hard through legislation and regulation. It is estimated that the United States would require between 1,500 and 3,000 new large generating plants to meet anticipated demand over the next 20 years or so. To generate an equal amount of power through smaller distributed generation plants could require 150,000 or more such facilities. To date, utilities have had little difficulty in dealing with the relatively small numbers of distributed generation OTHER SOLAR POWER WIND POWER Wind and solar are the largest components of existing distributed generation installations. 48 E n E rgyB i z November/December 2007

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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