Distributed generation is poised to get a boost from the GasResearch Institute (GRI) and Architectural Energy Corp., which havedeveloped new software to evaluate the economic viability ofon-site distributed generation projects for utility customers.

Called DG Pro, the software is licensed exclusively throughArchitectural Energy (AEC). “DG Pro offers local distributioncompanies, energy services companies, project developers and othersa valuable new tool for evaluating and promoting on-site generationprojects,” said Michael J. Holtz, AEC president.

The software can access a library of information to use inevaluating viability of on-site generation for specificinstallations. The library includes cost and performance data fornatural gas reciprocating engines, gas turbines and microturbines;electric and gas rates for utilities across the country; andprototypical building loads. The software produces color graphicsales and marketing reports on project economics.

With the vast majority of future distributed generation projectsexpected to be powered by natural gas, DG Pro will promote expandedgas use if it promotes more distributed generation. “Natural gas isgoing to be a big winner. There’s no doubt. Most of the distributedtechnologies right now are gas-fired technologies,” said SarahMcKinley, executive director of the Distributed Power Coalition ofAmerica.

According to a 1998 GRI report on policy implications of itsbaseline U.S. energy supply and demand to 2015, there was verylittle gas fired capacity that could be classified as small powergeneration – only about 2 gigawatts – in 1996. By 2015, however,small generating capacity is projected to grow to almost 26gigawatts, driven mainly through growth in distributed generation.

Among things needed for distributed generation to take off isexemption from exit fees or stranded cost recovery mechanisms,which inhibit distributed generation, said Paul Bautista, principalproduct manager for energy conversion for GRI. Also, transmissiontariffs that reflect the true cost of transmission would aididentification of opportunities for distributed generation. Anotheraid to distributed generation would be more relaxed and uniformstandards – from utility to utility – for connection to the powergrid. “A lot of these requirements are more applicable to a largecentral power plant and can impose an undue financial burden on a[distributed generation] project. Due to their small outputcapacity, a lot of projects are decided on simple payback. Anyadditional costs will impact these projects more so than a largerproject.”

Bautista said there is a lack of information in the marketplaceabout the benefits of distributed generation. This summer, GRIcontracted for four projects that are real applications ofdistributed generation. Performance of the projects was monitored,and GRI is examining the results to determine the best practicesfor distributed generation operation. GRI also has joined with theElectric Power Research Institute (EPRI), offering energy companiesthe opportunity to invest in distributed generation research.

“[Distributed generation] allows for LDCs to participate in thepower generation market,” Bautista said. “I think it’s going to bethe wave of the future given restructuring and the movement ofgeneration closer to the load center. I think in an unregulatedmarket, very few will take the risk of building a multi-hundredmegawatt plant, at least here in the U.S.”

Joe Fisher, Houston

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