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Spring 2002 Issue |
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| Striking a balance between energy and the environment in the Columbia River Basin |
ArticlesEnergy Trust will pursue conservation, renewables in Oregon Council decisions for 2001 and 2002 Council seeking comment on Fifth Power Plan Self-powered: is distributed generation in our energy future? Federal agencies propose to boost spending on salmon recovery Conservation investments today could moderate economic impacts of volatile power prices tomorrow John Hines appointed new Montana Council member Success stories: Pend Oreille River |
Self-Powered: Is Distributed Generation in Our Energy Future?At the city of Portland's Columbia Boulevard Wastewater Treatment Plant, a fuel cell is turning methane gas from the sewage treatment process into non-polluting, renewable electricity. The fuel cell operates like a battery, but never needs recharging. Methane gas that would normally be flared into the atmosphere is piped into the fuel cell; the cell extracts hydrogen from the gas, then combines it with oxygen. This creates a chemical reaction that produces electricity, heat and water. Portland's fuel cell generates as much as 1.4 million kilowatt-hours per year?enough electricity to power 120 homes for an entire year. Fuel cells will operate continuously as long as they have a steady fuel supply. The city's fuel cell, which was installed in 1999, is a reliable power source, uses free fuel, and doesn't pollute the environment. According to Duane Sanger, who manages the project, "I think it's been successful. The first year was a learning experience, and it took awhile to get it stabilized, but it's been going well since then."
Fuel cells are just one type of technology referred to as "distributed generation." It is also sometimes called distributed energy, distributed resources, and micropower. Simply put, it is any small-scale power generation technology that provides electric power at a site closer to customers than central station generation. A distributed power unit can be connected directly to the consumer's power system or to a utility's transmission or distribution system, and the electricity can be used on site or sent back to the grid. Along with fuel cells, other types of distributed generation include small-scale turbine generators, internal combustion engine/generators, photovoltaic-solar panels, and wind turbines. Sanger likens the future of distributed generation to the evolution of computers: "The technology is improving, and there is quite a lot of interest worldwide in fuel cells." He also thinks fuel cells may one day be used to power other devices like phones and cars.
Distributed generation has been called the "back to the future" phenomenon, because during the first part of the twentieth century, distributed generation was the norm. More than half of the electric power used by industry in the United States was generated on site. But as technology advanced and the transmission grid grew, the building of larger and larger power plants prevailed. Greater economies of scale translated into declining average costs for consumers, and the end result has been a very well developed infrastructure for the production and transmission of electricity in the United States. By the 1970s a number of changes signaled the end of the growth and stability of large, centralized power plants. Higher fuel costs, tighter environmental regulations, the skyrocketing capital costs of building plants, especially nuclear plants, legislative acts that opened up the competitive market, and technological advances all contributed to a growing interest in the development of alternative power sources. For the past ten years, the promise of distributed generation has hovered provocatively off stage, a "not ready for prime time" technology inspiring the kind of attention and press coverage that makes centralized generation look old fashioned, and "do it yourself power" the new wave energy source. Why is distributed generation so attractive and what are its benefits? Reliability and power quality are two important advantages. When you produce your own power, you don't have to worry about interruptions if a transmission line goes down. For users such as hospitals, electronics manufacturers and customers using electronic equipment that is sensitive to voltage surges, frequency noise, and other electric interference in the power supply, the assurance of a continuous flow of power regardless of disturbances or outages on the utility grid is a necessity. An electricity grid with many small generators is inherently more stable than a grid served by only a few large plants. Distributed generation can be used to supplement central power generation during peak periods of use. It also precludes the need to build costly transmission and distribution facilities, and it gives people the ability to choose and control their own electricity generation. Greater efficiency and lower air emissions are also major potential advantages of distributed generation. Net air emissions, water consumption and space requirements can be reduced because many distributed generation technologies, besides producing electricity, also produce heat and water. Cogeneration, or capturing these by-products of the electricity production process for use as space heating and hot water adds value and efficiency. In the past, this has only been possible for larger commercial and industrial applications, but the development of packaged fuel cell, and perhaps microturbine and reciprocating, cogeneration units may allow residential-scale cogeneration. Another bonus is the portability of the latest technologies. You can take it with you for recreational use on RV's, campers, boats and the like, which is why many industry groups?auto makers, fuel cell manufacturers, energy providers, component suppliers, and state agencies are working to bring fuel cell vehicles to the marketplace. [click graphs to enlarge]
Early this year, the Bush administration decided to lend its support to a plan created by the U.S. Department of Energy and the auto industry to develop hydrogen-based fuel cells to power the cars of the future. The goal is to eventually replace the internal combustion engine, although experts say the commercial production of cars with fuel cell engines is 10 to 20 years away. Distributed Generation TodayBoth fuel cells and microturbines are among the most appealing technologies, and the two that have received the greatest attention of late. In a 1998 survey of small commercial businesses by research firm Frost and Sullivan, 28 percent of businesses surveyed were interested in on site power generation. Fuel cells topped the list, along with generator sets and microturbines. State-of-the-art units are space saving, about the size of a photocopier or a refrigerator, and much quieter than the more typical diesel generators traditionally used as back-up power for homes and businesses. More importantly, they may be cleaner and easier on the environment. Pat Reiten, vice president of Marketing and Public Affairs for the Pacific Northwest Generating Cooperative Power, a not-for-profit power marketing cooperative, is optimistic about the prospects of distributed generation. "it's exciting, because at some point, perhaps in another five to ten years, it will be a viable option," he said. PNGC Power participates in the Bonneville Power Administration's Fuel Cell Development Program. Bonneville customers participating in the program are loaned a unit as part of a testing and development phase to commercialize fuel cell systems for homes and small businesses. Most recently, PNGC Power member utility, Lane Electric Cooperative in Eugene, Oregon, completed a six-week demonstration and test of a fuel cell unit that will rotate to other member headquarters for continued testing. The fuel cell will supply power to office and shop areas, including sophisticated electronic equipment, in an effort to evaluate its ability to provide a high degree of quality power. According to Kevin Watkins, PNGC Power vice president of engineering, "We hope that our ongoing involvement will bring the fuel cells even closer to commercial availability." The general consensus has been that the fuel cell industry is at least 12 to 18 months away from having a residential commercial product, and it will most likely be another two to three years before a fuel cell is produced for residential use. Most industry analysts, while positive, maintain a realistic view of the role distributed generation will play, at least in the near future, believing that the initial impact in terms of demand will probably not be significant enough to affect the grid for at least a decade. One view holds that the impact of fuel cells will be one of incremental change rather than a widespread shift from the existing central generation system. Fuel cells will be used, at least at the outset, not so much for residential use, but for the odd niche application, like remote cellular communication sites, recreational vehicle use, and for people living off the grid in outlying areas. It is doubtful that our current centralized system, with its vast, established infrastructure, will be overtaken by distributed generation, as some analysts have envisioned. It may be that distributed generation has the most potential in other parts of the world, and may make more sense outside the North American continent. In countries like Brazil?and South America generally?for example, that lack a widespread infrastructure, distributed generation may be a viable option. China, parts of Asia, and Africa are other regions where this also holds true. Ultimately, fuel cells, microturbines and other alternative on site power technologies will need to prove themselves in the marketplace. While progress is being made, fuel cells and microturbines are still emerging technologies. But the potential and interest is there. A variety of economic, social and environmental factors will influence the future of the distributed generation market. The move to restructure the power industry, the price of energy, including oil and natural gas, environmental legislation, the development of uniform codes and standards to accommodate the installation of these new technologies, and the broader economic picture, like interest rates and the global economic outlook, will all play a significant role in how fast and how far distributed generation will go. |
Leaders of the pack
Reciprocating
engines, microturbines and fuel cells have gained the most
interest and offer the greatest potential for the future of distributed
generation. All of them can be used for cogeneration?besides creating
electricity, they also can provide thermal energy that can be used to
heat water and space?making them extremely efficient.
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