Expanding biomass power in a tough utility arena using diversified portfolio strategies

Conference · Wed Nov 01 04:00:00 EST 1995

OSTI ID:115385

Easterly, J L ^[1]; Andrews, C J ^[2]

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1. DynCorp EENSP, Inc., Alexandria, VA (United States)
2. Princeton Univ., NJ (United States)

By including biomass power as a component in a diversified portfolio of power generating options, utilities can realize important benefits in managing the level of risk they face as they approach an uncertain and rapidly changing future. Following a dramatic expansion in installed biomass power capacity in the U.S. in the 1980s, biomass power has seen a sharp slow-down in the 1990s, given intense competition in the electric utility arena. With current low prices for natural gas and associated power plant technologies, the utility industry has begun moving toward a significant dependence on natural gas as their fuel of choice for the future. While on the surface this appears to be the least-cost, least-risk approach, a more comprehensive view of total fuel-cycle issues reveals many risks to this approach, such as uncertainties in future gas price stability and availability, increasing dependence on imported supplies, upstream emissions and impacts from well drilling, safety and cost risk associated with aging pipeline distribution networks, etc. By adopting a balanced portfolio approach in the slate of fuels and technologies that are used for producing electric power, a modest commitment to some use of biomass could help provide a hedge against current trends toward heavy dependence on new natural gas generating capacity. This paper presents final conclusions from a project completed by DynCorp EENSP (formerly Meridian, a DynCorp subsidiary) for the Northeast Regional Biomass Program entitled {open_quotes}Capturing Environmental and Economic Externalities: Evaluating the Total Fuel-Cycle Impacts of Biomass.{close_quotes}

• Research Organization: National Renewable Energy Lab., Golden, CO (United States)
• OSTI ID: 115385
• Report Number(s): NREL/CP--200-8098; CONF-9508104--; ON: DE95009230
• Country of Publication: United States
• Language: English

Related Subjects

09 BIOMASS FUELS
29 ENERGY PLANNING, POLICY, AND ECONOMY
BIOMASS
CAPACITY
COMPETITION
ELECTRIC UTILITIES
ENERGY SOURCE DEVELOPMENT
FUEL CYCLE
FUEL MANAGEMENT
NATURAL GAS
PRICES
RISK ASSESSMENT