benefits and barriers
Benefits of Recycled Energy
...for owners:
- Improved fuel efficiency - up to 2/3 savings in fuel costs
- Improved power quality & reliability
- Improved energy cost predictability
- Business continuity
- Energy security
...for society:
- Reduced emissions per unit of useful output - up to 33%-50% reduced emissions
- No ratepayer investment required in generating, transmitting or distributing power
- Reduced land-use impacts and NIMBY objectives
- Reduced fresh water use
- Optimized natural gas and reduced price volatility - up to 40% greater efficiency than conventional units
- Creation of new high-tech manufacturing sector in domestic and export markets
- Support of competitive electricity market structure
...for electric utilities:
- Reduced energy losses in transmission lines - current transmission losses are about 10%. Clean energy requires no remote transmission and therefore sustains no transmission losses.
- Reduced upstream congestion on transmission lines
- Reduced or deferred infrastructure (line and substation) upgrades
- Optimal use of existing grid assets, including the potential to free up transmission assets for increased wheeling capacity
- Less capital tied up in unproductive asset
- Improved grid reliability
- Higher energy conversion efficiencies than central generation
- Faster permitting than transmission line upgrades
- Ancillary benefits including voltage support & stability, contingency reserves and black start capability
Barriers to Recycled Energy
(See our Policies & Incentives page for in-depth discussions of policy issues currently confronting clean energy adoption in the pacific region, and see the Oak Ridge and DOE reports highlighted above for a national discussion.)
- Inconsistent interconnection requirements between states and even between utilities
- Potential interconnection delays
- Standby and back-up power charges from the utility that can adversely affect project economics
- Air regulations that do not recognize the environmental benefits of CHP]
- Non-standardized, time-consuming environmental permitting process
- Complex local ordinances regarding siting, zoning, fire code, etc...
- Volatile natural gas prices and "spark spread"
- Facility managers unaware of the benefits of on-site power generation
- On-site generation systems' lack of a specific tax depreciation category -- CHP systems can qualify for one of several categories depending on configuration and ownership resulting in a depreciation period ranging from 5 to 39 years
- Utilities' lack of standard data, models, or analysis tools for evaluating DG, or standard practices for incorporating DG into electric system planning and operation