Distributed generation technology in a newly competitive electric power industry
Conference
·
OSTI ID:376189
- Brattle Group, Cambridge, MA (United States)
The electric utility industry is in the midst of enormous changes in market structure. While the generation sector faces increasing competition, the utilities` transmission and distribution function is undergoing a transition to more unbundled services and prices. This article discusses the extent to which these changes will affect the relative advantage of distributed generation technology. Although the ultimate market potential for distributed generation may be significant, the authors find that the market will be very heterogeneous with many small and only a few medium-sized market segments narrowly defined by operating requirements. The largest market segment is likely to develop for distributed generation technology with operational and economical characteristics suitable for peak-shaving. Unbundling of utility costs and prices will make base- and intermediate-load equipment, such as fuel cells, significantly less attractive in main market segments unless capital costs fall significantly below $1,000/kW.
- OSTI ID:
- 376189
- Report Number(s):
- CONF-960426--
- Country of Publication:
- United States
- Language:
- English
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