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There are many applications for distributed generation systems. They include: • Peak shaving - Power costs fluctuate hour by hour depending upon demand and generation, therefore customers would select to use distributed generation during relatively high-cost, on- peak periods. • Combined heat and power (CHP) (Cogeneration) –The thermal energy created while converting fuel to electricity would be utilized for heat in addition to electricity in remote areas, and electricity and heat for sites that have a 24 hour thermal/electric demand. • Grid support – Strategic placement of distributed generation can provide system benefits and preclude the need for expensive upgrades and provide electricity in regions where small increments of new baseload capacity is needed. • Standby power – Power during system outages is provided by a distributed generation system until service can be restored. This is used for customers that require reliable back-up power for health or safety reasons, companies with voltage-sensitive equipment, or where outage costs are unacceptably high. • Remote/Standalone – The user is isolated from the grid either by choice or circumstance. The purpose is for remote applications and mobile units to supply electricity where needed. Distributed generation systems have small footprints, are modular and mobile making them very flexible in use. The systems provide benefits at the customer level and the supplier level, as well as the national level. Benefits to the customer include high power quality, improved reliability, and flexibility to react to electricity price spikes. Supplier benefits include avoiding investments in transmission and distribution (T&D) capacity upgrades by locating power where it is most needed and opening new markets in remote areas. At the national level, the market for distrib- uted generation establishes a new industry, boosting the economy. The improved efficiencies also reduce greenhouse gas emissions. However, a number of barriers and obstacles must be overcome before distributed generation can become a mainstream service. These barriers include technical, economic, institutional, and regulatory issues. Many of the proposed technologies have not yet entered the market, and will need to meet performance and pricing targets before entry. Questions have also risen on requirements for connection to the grid. Lack of standardized procedures creates delays and discourages customer-owned projects. Siting, permitting, and environmental regulations can also delay and increase the costs of distributed generation projects. In 1998, the Department of Energy created a Distributed Power Program to focus on market barriers and other issues that have prohibited the growth of distributed generation systems. Under the leadership of the National Renewable Energy Laboratory (NREL), a collaboration of national laboratories and industry partners have been creating new standards and are identifying and removing regulatory barriers. The goals of the program include 1) strategic research, 2) system integration, and 3) mitigation of regulatory and institutional barriers (24). Fuel cells, one of the emerging technologies in distributed generation, have been hindered by high initial costs. However, costs are expected to decline as manufacturing capacity and capability increase and designs and integration improve. The fuel cell systems offer many potential benefits as a distributed generation system. They are small and modular, and capital 1-21PDF Image | Fuel Cell Handbook (Seventh Edition)
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