Benefits

A plethora of benefits in Cogeneration.

Driving Forces Behind Distributed Power

Several global market forces are driving the transformation of distributed power. These forces include climate change, the increasing adoption of natural gas as a global fuel, and the emerging Industrial Internet. Key forces are discussed in more detail below

Trees covered with hoarfrost and snow in winter mountains – Chri

Climate
Change

The inevitable momentum for Greenhouse Gas (GHG) mitigation is a key driver for more efficient technologies such as CHP, and cleaner alternatives such as natural gas or renewables, replacing diesel fuel or coal. CHP applications have high potential in large energy-consuming industries such as the oil sands, Liquefied Natural Gas (LNG) production, pulp and paper mills, and petrochemicals.

Age of
Gas

Within North America, the recent growth in unconventional gas production through horizontal drilling and hydraulic fracturing techniques has resulted in more affordable and widely available natural gas. The ample supply of energy and its low price are paving way to the new “Age of Gas”.

Industrial
Internet

The integration of increasingly “intelligent” machines, Internet-enabled networks and advanced analytics promises to revolutionize all aspects of industrial productivity by meshing the digital world with the world of machines. Within distributed power generation, these advances will enable operators to remotely optimize operations and minimize costs in ways that were not previously possible.

The Benefits of Onsite Cogeneration

System-wide advances have resulted in distributed power technologies becoming more com- pact, more accessible, more efficient, and more affordable today than they were a decade ago. This has allowed distributed power systems to overcome many of the constraints that typically inhibit the development of large capital projects for power generation and delivery. Key benefits are shown below as follows

Efficiency

Distributed generation is more energy-efficient, as point-of-use utilization minimizes waste from transmission losses, and allows for both electricity and thermal energy to be employed in CHP applications.

Cost-Effectiveness

The smaller scale of distributed power technologies translates into lower investment hurdles and lower overall construction and operating costs, reducing risk as well as capital requirements for project financing. The International Energy Agency has estimated that these cost savings, combined with reduced transmission line losses, translate into tens of billions of dollars for Canada alone.

Speed

Distributed power systems can be installed quickly and, in some cases, do not require the lengthy siting, permitting and review procedures as large infrastructure projects do. System start-up and response times are also faster, allowing distributed systems to bridge power gaps more rapidly during energy shortages, natural disasters or large-scale events.

Flexibility

The small size of distributed power technologies enables energy providers to more effectively match supply and demand levels through smaller, incremental adjustments. Furthermore, distributed systems can either stand alone or work together within a network of integrated technologies to meet the needs of both large and small energy users.

Localization

Localizing distributed generation at or near its consumers enables operation, monitoring and maintenance to meet specific local needs. Smaller regional power systems also promote local job creation and facilitate greater community engagement and understanding of power system choices.

Reliability

Decentralized elements within a weak or unreliable central grid allow for more rapid regional power restoration following a power outage or natural disaster. Distributed generation also helps bring dependable power and reliability to Northern, remote and rural communities through independent or backup generation to industrial and commercial operators.