1.
Introduction
Distributed generation has captured the interest of policymakers at the federal and state level, potential users and developers, and is entering into the business strategies of many utilities, unregulated energy service providers, and customers. Distributed generation has the potential to dramatically change the existing structure of electricity generation and distribution and redefine how electric services are delivered to the customer. At the same time, distributed generation faces the difficulties of introducing new technologies and practices to the market, an uncertain and changing regulatory environment, and high expectations. Combined Heat and Power (CHP), also called cogeneration, is a distributed generation application that, can significantly increase the efficiency of energy utilization, reduce emissions of criteria pollutants and CO 2 , and lower a user's operating costs
Potential benefits of distributed generation to energy users include lower energy costs, increased reliability, improved power quality, enhanced energy management through options such as peak shaving, ability to arbitrage gas and electric costs, and the ability to economically provide both power and heat. The largest potential growth markets for distributed generation will be commercial and small to medium size industrial customers (a large percentage of large industrials have already embraced on-site power). Longer term markets could include multi-family housing and single residential units.
A key element of distributed generation's promise is the emergence of small, modular natural gas generating technologies with relatively high efficiencies and low emissions. These technologies will enable local distribution companies (both gas and electric), energy service companies and customers to respond to changing energy markets with increased flexibility and with cost effective alternatives to the traditional utility infrastructure. In most cases, natural gas will be the fuel of choice for distributed generation, creating new loads and new business opportunities for local distribution companies. The Energy Solutions Center (ESC) and its members in partnership with the Department of Energy (DOE) play an important role in facilitating the development of the distributed generation market by helping to increase the awareness of distributed generation options among customers and by working to overcome critical market, technology application, regulatory and institutional barriers to widen market acceptance.
To facilitate this effort, the ESC has formed the Distributed Generation Consortium, supported by fourteen utility members, to co-fund with DOE's Distributed Energy Resources group the collection of data for key applications in replicable industrial settings.
This guide for replicable innovative industrial CHP applications is intended to assist gas companies and potential customers to better understand the related benefits, barriers, technologies, and issues related to the practical application of CHP. This comprehensive document provides valuable information needed to understand the CHP market and implement projects. While each potential CHP project requires its own detailed analysis which must incorporate unique site-specific considerations, this guide provides the tools for initial assessment of CHP market opportunities, identification of applicable CHP technologies, and initial technical and economic feasibility of CHP project opportunities for industrial and institutional sites.
The guide presents an overview of CHP technologies, applications, and project assessment approaches. It concludes with case history reports that highlight the installation and operations experience of industrial CHP projects.
This manual covers the following topics:
• CHP Basics
• CHP Market
• CHP Technologies
• Integration of CHP into Industrial Processes
• CHP Assessment, Design, and Installation Issues
• Economic Evaluation of CHP Projects
• CHP Case Histories
The application manual allows those pursuing specific CHP project opportunities to become familiar with traditional applications of CHP, current performance of primary CHP prime movers, the steps to take to ensure fair and reasonable evaluation of specific project opportunities, and lessons learned from recent industrial customers electing to employ CHP projects.
The guide can be broken down into four basic components: CHP markets, CHP technology, CHP project assessment and development, and CHP implementation. Chapters 2 and 3 provide background information and insights into the current state of the CHP market. Chapters 4 and 5 look at the technical aspects of generation equipment and integrating them into industrial processes. Chapters 6 and 7 provide the process for assessing and implementing a CHP project. Chapter 8 summarizes actual CHP experience at industrial customer sites. |