Optimal selection of on-site generation with combined heat andpower applications

Journal Article · Tue Nov 30 04:00:00 EST 2004 · International Journal of Distributed Energy Resources

OSTI ID:862013

Siddiqui, Afzal S; Marnay, Chris; Bailey, Owen; HamachiLaCommare, Kristina

While demand for electricity continues to grow, expansion of the traditional electricity supply system, or macrogrid, is constrained and is unlikely to keep pace with the growing thirst western economies have for electricity. Furthermore, no compelling case has been made that perpetual improvement in the overall power quality and reliability (PQR)delivered is technically possible or economically desirable. An alternative path to providing high PQR for sensitive loads would generate close to them in microgrids, such as the Consortium for Electricity Reliability Technology Solutions (CERTS) Microgrid. Distributed generation would alleviate the pressure for endless improvement in macrogrid PQR and might allow the establishment of a sounder economically based level of universal grid service. Energy conversion from available fuels to electricity close to loads can also provide combined heat and power (CHP) opportunities that can significantly improve the economics of small-scale on-site power generation, especially in hot climates when the waste heat serves absorption cycle cooling equipment that displaces expensive on-peak electricity. An optimization model, the Distributed Energy Resources Customer Adoption Model (DER-CAM), developed at Berkeley Lab identifies the energy bill minimizing combination of on-site generation and heat recovery equipment for sites, given their electricity and heat requirements, the tariffs they face, and a menu of available equipment. DER-CAM is used to conduct a systemic energy analysis of a southern California naval base building and demonstrates atypical current economic on-site power opportunity. Results achieve cost reductions of about 15 percent with DER, depending on the tariff.Furthermore, almost all of the energy is provided on-site, indicating that modest cost savings can be achieved when the microgrid is free to select distributed generation and heat recovery equipment in order to minimize its over all costs.

• Research Organization: Ernest Orlando Lawrence Berkeley NationalLaboratory, Berkeley, CA (US)
• Sponsoring Organization: USDOE. Assistant Secretary of Energy Efficiency andRenewable Energy. Distributed Energy and Federal Energy ManagementPrograms of the U.S. Department of Energy, Public Interest EnergyResearch Program, under Wo rk for Others Contract No. 500-03-024; California Energy Commission
• DOE Contract Number: AC02-05CH11231
• OSTI ID: 862013
• Report Number(s): LBNL--56774; BnR: EO0101050
• Journal Information: International Journal of Distributed Energy Resources, Journal Name: International Journal of Distributed Energy Resources Journal Issue: 1 Vol. 1
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
ABSORPTION
AVAILABILITY
CLIMATES
ECONOMICS
ELECTRICITY
ENERGY ANALYSIS
ENERGY CONVERSION
HEAT RECOVERY EQUIPMENT
ON-SITE POWER GENERATION
OPTIMIZATION
RELIABILITY
TARIFFS
WASTE HEAT
distributed generation combined heat and powermicrogrid