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Benefits of Recycled Energy
...for owners:
- Improved fuel efficiency - up to 2/3 savings in fuel costs
- Improved power quality & reliability
- Improved energy cost predictability
- Business continuity
- Energy security
...for society:
- Reduced emissions per unit of useful output - up to 33%-50%
reduced emissions
- No ratepayer investment required in generating, transmitting or
distributing power
- Reduced land-use impacts and NIMBY objectives
- Reduced fresh water use
- Optimized natural gas and reduced price volatility - up to 40%
greater efficiency than conventional units
- Creation of new high-tech manufacturing sector in domestic and
export markets
- Support of competitive electricity market structure
...for electric utilities:
- Reduced energy losses in transmission lines -
current transmission losses are about 10%. Clean
energy requires no remote transmission and therefore
sustains no transmission losses.
- Reduced upstream congestion on transmission
lines
- Reduced or deferred infrastructure (line and
substation) upgrades
- Optimal use of existing grid assets, including
the potential to free up transmission assets for
increased wheeling capacity
- Less capital tied up in unproductive asset
- Improved grid reliability
- Higher energy conversion efficiencies than
central generation
- Faster permitting than transmission line
upgrades
- Ancillary benefits including voltage support &
stability, contingency reserves and black start
capability
Barriers to Recycled Energy
(See our Policies &
Incentives page for in-depth discussions of
policy issues currently confronting clean energy
adoption in the Midwest region, and see the Oak
Ridge and DOE reports highlighted above for a national
discussion.)
- Inconsistent interconnection requirements
between states and even between utilities
- Potential interconnection delays
- Standby and back-up power charges from the utility that can
adversely affect project economics
- Air regulations that do not recognize the environmental benefits of
CHP]
- Non-standardized, time-consuming environmental permitting process
- Complex local ordinances regarding siting, zoning, fire code, etc...
- Volatile natural gas prices and "spark spread"
- Facility managers unaware of the benefits of
on-site power generation
- On-site generation systems' lack of a specific tax depreciation
category -- CHP systems can qualify for one of several categories
depending on configuration and ownership resulting in a depreciation
period ranging from 5 to 39 years
- Utilities' lack of standard data, models, or analysis tools for
evaluating DG, or standard practices for incorporating DG into electric
system planning and operation
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