 |
Distributed Energy Can Improve the Nation’s Electricity System
Distributed energy can play a much larger and more beneficial
role in the nation's electricity energy infrastructure, according
to a broad-based panel of experts representing utilities, public
interest groups, and government.
After a year of in-depth study and review, the distinguished forum,
convened by the Consumer Energy Council of America (CECA), concluded
that distributed energy resources, when properly integrated into
an improved national electric power system, can foster lower prices,
greater reliability, and a new platform for integrated consumer
services.
'This was the highest ranking group of experts ever to take an
in-depth look at distributed energy," said CECA President Ellen
Berman. "The participants represented every sector of the electric
power industry – including executives from investor-owned utilities,
public power systems, and rural electric cooperatives – senior
officials at the Department of Energy, chairs of state public service
commissions, and consumer and environmental leaders. The report
constitutes the most comprehensive analysis of distributed energy
to date."
Distributed energy (DE) is defined as small generators located
on or near the consumer's site. The actual size of the generator
can vary depending on the particular circumstance. For the new emerging
DE technologies, the electric generating unit is usually manufactured,
not erected in the field.
Most current distributed energy facilities derive power from diesel
engines or combined heat and power steam turbines, though a variety
of new and emerging technologies include solar, wind, biomass, natural
gas, petroleum and even geothermal and micro-hydro energy sources.
"We are seeing the convergence of need – an aging utility
infrastructure, new economy demands on power reliability and quality,
consumer interest in greater flexibility and new services –
with emerging technologies – fuel cells, microturbines, photovoltaics,
and others – well suited to addressing those needs," said
Ernest Moniz, the forum's vice chair and then-Undersecretary of
Energy. The opportunity is at hand to begin reshaping our energy
infrastructure for the 21st century."
The CECA Distributed Energy Forum recognized that many hurdles
must be overcome before distributed energy can realize its full
potential within the nation's electric power infrastructure. Among
the CECA Distributed Energy Forum's key recommendations are:
- Rapid adoption of consensus standards for interconnection of
DE into the nation's power grid.
- Quick action by local, state and federal regulatory authorities
to "fast track" the use of existing and new standby
and emergency power facilities to meet generator shortages and
mitigate power reliability problems.
- Support for DE in a way that will enhance environmental quality,
and consideration of total system impact in the policy framework
for DE.
- A concerted effort to develop and adopt best business practices
in the treatment of DE.
- Development of regulatory procedures to facilitate and support
economic and technical transactions between the customer and host
utility.
- Development of creative new rate structures and business arrangements
for DE.
- Authority to allow local distribution utilities or service
providers to own or operate DE, whether located on the grid or
on customer premises.
- Higher priority for federal research, development and demonstration
of DE technologies.
- A concerted effort to address the regulatory and institutional
barriers to more widespread DE deployment.
"These recommendations reflect the concerted regulatory,
legislative, and business actions that are needed if distributed
power is to grow in a timely fashion beyond important niche markets
into a major component of an integrated modernized national electricity
system," said Forum Chair Charles Curtis, a former Deputy Secretary
of the Department of Energy and Chairman of the Federal Energy Regulatory
Commission. "Today's focus on energy issues and restructuring
of the energy marketplace present an important opportunity for moving
forward with such actions."
The CECA DE Forum Report is available from CECA. More information
about distributed energy can be obtained from its web site at http://www.cecarf.org.
| Back
| Next |
|
