Obtaining operational flexibility during power plant permitting in a deregulated market
According to the Wall Street Journal, California is one of the most aggressive states in pursuing deregulation of the power industry. The High Desert Power Project (HDPP) is one of the first merchant power plants to undergo permitting in California's deregulated energy market. HDPP requires air permits from the California Energy Commission, EPA Region IX, and Mojave Desert Air Quality Management District for the power plant. As a merchant plant, HDPP will be solely responsible for efficient, reliable production of energy. Neither electricity customers nor utility companies will bear any financial risk of operation of HDPP. This changing risk profile has affected the permitting process for power plants in California. This paper will discuss how HDPP is endeavoring to obtain operational flexibility within this changing market place through the permitting process. Some of the strategies being pursued, and the impact on the permitting process and schedule, that will be discussed include: Use of conceptual vs. final plant design and engineering; Permitting of multiple plant configurations (both simple and combined cycle) and multiple natural gas pipelines to maximize market opportunities; The emissions envelope approach and inclusion of multiple gas turbine vendors; Determination of the Lowest Achievable Emission Rate for NO{sub x} and VOC in the midst of new developments for control technology options; Investigation of interbasin and interpollutant emission reduction credits for offsets; and Development of flexible permit conditions and requirements. The HDPP is currently in the permit processing stage and expects to be issued permits by EPA and MDAQMD in early-1999 and be licensed by the CEC by mid-1999.
- Research Organization:
- QEP ENSR, Camarillo, CA (US)
- OSTI ID:
- 20002246
- Report Number(s):
- CONF-990608--
- Country of Publication:
- United States
- Language:
- English
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