This is an eight part series
Part I
Distributed generation is the use of small-scale power generation systems (typically in the range of 100 kW to 10,000 kW), providing alternatives to or enhancements of the traditional electric power grid.
Out in the real world, Distributed Generation, or DG, can be found operating in a variety of situations in industrial, commercial and also residential applications (by definition, even a roof-top solar system on a house is DG). However, it is most commonly used to serve factories and manufacturing and other types of buildings or enterprises where electricity usage is high, particularly during daytime, or “peak” hours.
A more advanced system in the DG realm is Combined Heat and Power, or CHP. CHP not only produces electricity to serve on-site applications, but also recovers most of the heat created during the generation process, and uses both commodities (electricity and thermal energy) in the applications the DG is serving. For example, a manufacturing company that operates 24/7 and runs machinery that requires both electricity and heat or steam in its processing might be an excellent candidate for CHP.
So, on the surface, DG and CHP would seem to be the greatest thing since frosted flakes: reducing overall energy consumption, emitting less pollution and saving money for the “host,” all at the same time. But life is never that simple, and, in fact, there are many issues associated with this process that can make this business extremely frustrating, at minimum, and absolutely untenable in many situations.
Over the course of this eight-part series, I will give a detailed example of an actual business that was a great one in many ways, but which nonetheless failed, despite some of the best minds, business contacts and money behind it. The greater hope is to make real changes to the structure and implementation of these programs, which will allow future such endeavors to work well.
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