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Infrastructure Modernization Solution CHP systems are located close to energy consumers. Transmission and bulk power transformer losses associated with the delivery of electricity from remote power generation, which average 6-8 percent and can exceed 10 percent at peak, are avoided. CHP can further benefit the electrical system by reducing demand on the generation and transmission systems of the grid. This demand reduction can cut congestion on the electric supply system, freeing transmission and distribution capacity to serve other consumers and improving grid reliability by mitigating overloads. Business Continuity and Disaster Response In the distributed energy paradigm that includes CHP, local energy resources are strategically sited near demand. This approach can assist both suppliers and end users. For end users, CHP can mitigate the risk of periodic, prolonged, and expensive disruptions in service and power quality. There are a growing number of industries and enterprises whose fundamental business operations depend on a continuous supply of reliable, high-quality power such as data centers, hospitals, financial institutions, and key industrial processes. CHP and distributed energy can help communities respond to natural disasters and prolonged energy emergencies. Electricity is essential for many of the vital services performed by hospitals and public health facilities. Life-saving equipment, lighting, space conditioning, cold storage systems, emergency communications, and potable water depend on reliable electric power. CHP and distributed energy have proven to be extremely valuable in the continuity of critical health services during prolonged power outages and natural disasters. Additionally, if coordinated with the electric utility, CHP can have a role in the safe restoration of the power grid by balancing demands with available supply. Utility and Grid Benefits The electric power system is extremely complex and must be kept in balance at all times. Disturbances at any point are immediately felt to some extent by every other point. Moreover, the electric power grid is inextricably linked to the country’s other critical infrastructure (e.g., telecommunications, natural gas, and water). Distributed energy technologies, such as CHP, offer a more secure, modernized, reliable, and robust electricity system than the Nation’s current centralized grid paradigm. Using the best features of both approaches can be mutually beneficial. The grid is severely congested and constrained in many areas of the US during peak power use. The shift from a manufacturing to a service economy, population migration toward urban centers and southern locales, the tremendous increase in high-tech or “digital” facilities with high electric load concentrations, and new homes’ increase in size and electric loads have added significant peak demand and stress to the power grid. Combined Heat & Power: Effective Energy Solutions for a Sustainable Future 19 Missouri Ethanol, LLC Missouri Ethanol, LLC in Laddonia, Missouri is a 45 million gallon per year ethanol plant that began operation in September of 2006. The plant uses approximately 5 MW of power and 100,000 lbs/hr of steam. The plant is served by a 14.4 MW gas turbine CHP system that is a joint ownership venture between the ethanol plant and the Missouri Joint Municipal Electric Utility Commission (MJMEUC), a joint action agency that supplies power and capacity services to 56 municipal utilities in Missouri. MJMEUC, owns and is responsible for the gas turbine, while the ethanol plant owns and is responsible for the heat recovery boiler and steam system. Natural gas costs are shared between MJMEUC and Missouri Ethanol based on a number of factors including the avoided costs of steam for the ethanol plant. Missouri Public Utility Alliance (MPUA) which is the umbrella organization for the MJMEUC., views the Laddonia project as a “win - win - win” effort, as it provides competitive power supply for MJMEUC, reduced steam costs for the ethanol plant, and additional baseload gas demand for the Missouri Municipal Gas Commission. MPUA sees joint ventures like Laddonia as a way of getting “combined cycle performance at simple cycle prices”, and as a way of adding efficient, competitive natural gas capacity to their system in increments that they can digest.PDF Image | COMBINED HEAT AND POWER
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