By Wade Troxell, Professor/Director, Colorado State University, May, 10, 2004 -
Free electricity. Sound enticing? To thousands of commercial applications "free" electricity has become a reality. Utilizing the concept of cogeneration, the simultaneous production of a thermal and electrical load from a single thermodynamic process. Cogeneration, or Combined Heat and Power (CHP), is not a new concept, (it can be traced back to medieval smokejacks) but it is a concept that is far too often overlooked. New, packaged CHP systems are now designed and sold to be more easily installed and quickly producing at preexisting facilities. These packaged systems are sold in a variety of forms, including diesel gen-sets, fuel cells, combustion gas turbines and coal engines, and all utilize the waste heat given off in the electricity production process. With cogeneration commercial facilities can potentially experience:
Higher power reliability
Lower electrical and thermal costs
Less vulnerability to grid failure or sabotage
Environmental benefits due to reduction of power supplied by utility
By Steven Hall, General Manager, Power Systems, Clean Air Partners, August, 06, 2003 -
The race is on for us as a nation to reduce air pollutants and minimize energy usage. However, in our 24x7 world, continuous power is a must. And, power prices may go sky-high during peak demand times. Last year, Californian’s quickly realized the need for peak load reduction, increased power quality and grid reliability. According to the California Energy Commission, more than 2,000 megawatts of distributed generation (DG) facilities have been installed statewide with an expected 300 to 400 megawatts in small-scale projects to be added on an annual basis in the near term. DG or power backup systems comprised of standby engine gen-sets are a prime solution. Unfortunately, due to various Federal and State mandates regulating air quality, diesel gen-set operation can be restricted to as little as 200 hours per year; turning these much needed power systems into expensive idle assets. more...
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By Benoit Ansart, Managing Director, Vim Capital, LLC, May, 06, 2003 -
Today’s credit pressure on energy companies is forcing some asset owners to re-organize their portfolios. However, the flurry of bargain sales has not occurred as anticipated. This “wait and see” attitude is a result of the significant price gap between buyers and sellers and fears that acting today may be premature, with greater opportunities in the future. There is no greed on either side here; it is just that the cash value of merchant facilities, based on forward market prices, is less than the debt owed to lenders. As a result, a transaction would be detrimental to the seller’s credit situation. So what can be done to solve the immediate cash need of our power generation industry? more...
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By Louis Braquet, PE, Principal Consultant, LB Services, LLC, October, 08, 2002 -
COGENERATION MARKET STATUS The ENRON scandal, high market prices and blackouts have brought energy issues to the forefront of American politics and public awareness. Simultaneously, impending utility deregulation is sweeping the nation causing more uncertainty in this already problematic situation. Ironically, at a time when it may be most needed as a potential solution to some of these energy problems, the fate of the "official" cogeneration facility may be on unsteady ground (official is referenced here as the facility which has obtained the FERC's QF - Qualifying Facility - status). Energy legislation currently pending in both the Senate and House address the repeal of many of the prime benefits provided by this QF status. While the values and protection currently granted a QF under the regulated utility environment may ultimately be insignificant in the fully functional, unregulated environment, the transition between regulated and unregulated markets may prove difficult depending on the exact location and structure of a cogen facility. more...
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