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IMPEDIMENTS TO EFFICIENT DEPLOYMENT OF DISTRIBUTED RESOURCES

IMPEDIMENTS TO EFFICIENT DEPLOYMENT OF DISTRIBUTED RESOURCES. COMMODITY COSTS $/KW OR $/KWH. Capital cost of equipment internal combustion engines gas turbines micro turbines fuel cells photovoltaics wind turbines Operating costs. Internal Combustion Gen Sets.

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IMPEDIMENTS TO EFFICIENT DEPLOYMENT OF DISTRIBUTED RESOURCES

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  1. IMPEDIMENTS TO EFFICIENT DEPLOYMENT OF DISTRIBUTED RESOURCES

  2. COMMODITY COSTS$/KW OR $/KWH • Capital cost of equipment • internal combustion engines • gas turbines • micro turbines • fuel cells • photovoltaics • wind turbines • Operating costs

  3. Internal Combustion Gen Sets • Installed capital costs are high • Non-fuel operating costs are high • Fuel costs are high • Limited on-site thermal sales opportunities

  4. Gas Turbines • Installed capital costs are high • Fuel costs are high

  5. Micro Turbines • Installed capital costs are high • Fuel costs are high • Operating costs are high • Technology unproven

  6. Fuel Cells • Evaluated on the promise of substantially lower annual operating costs • High capital costs • Expected stack life of fuel cells is relatively short and require significant replacement capital costs

  7. Solar and Wind • Availability of resources • Availability of land

  8. Commodity Cost Main Point • On a commodity dollars per kilowatt-hour or per-kilowatt basis against established coal and natural gas fired generating plants, DR faces an uphill battle…...

  9. Interconnection Issues • Interconnection • Access charges to distribution system • System upgrades • Operation and dispatch • Reliability issues • Worker safety

  10. Other Issues • Environmental concerns • Local citing issues • Standby charges • Fuel supply

  11. PRICING OF STANDBY POWER • Cost of service perspective • 100% of DG load usually req’d to be reserved • Supplier must stand ready to meet the potential requirements of all its customers • Provider of last resort concept • Insurance concept • Transmission & distribution cost recovery • Market based approaches

  12. Potential Benefits From Distributed Resources • Wider customer choice • Potential to supply 100% of end user needs • Potential for improved power quality and reliability in conjunction with host utility service

  13. Likely Role For DR In Competitive Generation Environment • Primarily “niche” markets • Short term fix for distribution system constraints • Uninteruptible Power Supply (UPS) • Green Markets • Isolated locations

  14. Biographical SketchRichard A. VoytasSupervising EngineerCorporate Planning, Ameren ServicesPhone: (314) 554-3025Fax: (314) 554-4679Current responsibilities at Ameren Services include market modeling, resource planning including non-utility generation analysis/coordination, load analysis and forecasting and load research. Prior positions at Ameren include: Interconnection Arrangements, Rate Engineering, Power Operations, Fossil Fuel Procurement and Engineering and Construction.Academic background includes a B.S. in Mechanical Engineering from the University of Missouri-Rolla and a MBA from St. Louis University. I am a registered professional engineer in the state of Missouri.

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