Distributed Generation–Recent Developments

Subject: UFTO Note – Distributed Generation–Recent Developments
Date: Tue, 15 Jul 1997 09:44:38 -0700
From: Ed Beardsworth

| ** UFTO ** Edward Beardsworth ** Consultant
| 951 Lincoln Ave. tel 415-328-5670
| Palo Alto CA 94301-3041 fax 415-328-5675
| http://www.ufto.com edbeards@ufto.com

Distributed Generation–Recent Developments

Several new developments of note in the Distributed Generation (or Resources, Power, Utilities — whichever term you prefer). The field seems to be warming up considerably, and several key events scheduled in September.

** CADER – Calif. Alliance for Distributed Energy Resources
Conference Sept 15-17, San Diego

** DPCA – Distributed Power Coalition of America
Annual Meeting, Sept 10-11, Washington DC

** Distributed Generation Forum (GRI)
Second Forum Meeting, Sept. 30

** EPRI Web site

** “N Amer. Distrib. Gen. System Markets”, Frost & Sullivan

** Distributed Utility Associates


** CADER – California Alliance for Distributed Energy Resources

CADER is an alliance of public and private organizations formed in 1996 to identify and develop specific solutions to the deployment of Distributed Resources. Initially set up with the help of the California Energy Commission, it is a self-managed organization.

Mission Statement: A consortium of manufacturers, users, energy service companies, engineering firms, utilities, power providers, research organizations, regulators, financial institutions, and others committed to facilitating the successful entry of clean, energy efficient Distributed Resources into a competitive electricity energy market.

CADER CONFERENCE SEPT 15-17, 1997, San Diego CA

CADER will host a three day conference to explore economically and environmentally viable alternatives to grid-based power systems. Key energy industry experts from across the country will assemble at this first-of-its-kind meeting to debate how distributed resources figure into the rapidly changing electricity marketplace.

The conference, entitled “Distributed Resources: Addressing the Challenges”, will take place September 15 through 17, 1997 at the Catamaran Resort Hotel, 3999 Mission Blvd., San Diego, California 92109. Hotel reservations are available by calling the hotel directly at 619-488-1081 or 800-288-0770.

The San Diego conference will highlight the latest technology developments such as photovoltaic solar systems, fuel cells, storage technologies such as flywheels and batteries, and advanced gas turbines. In addition to site visits and technical sessions, conference participants will discuss an array of environmental, regulatory and market-related issues.

Speakers invited to the CADER Conference include: Governor Pete Wilson; Congressman Dan Schaefer; California Senator Steve Peace; Amory Lovins, Rocky Mountain Institute; Federico F. Peña, Secretary, U.S. Department of Energy; and David Freeman, Trustee, ISO/PX.

Conference technical sessions will focus on the following areas:

Energy policy
Incentives and market rules
Legal, institutional and regulatory issues
Siting and environmental regulatory streamlining
Land use planning and computer tools
Manufacturer/technology issues

The conference builds on the success of CADER’s pioneering efforts to ensure the economic competitiveness of Distributed Resources and will focus on how distributed generation systems can provide local distribution utilities, end-users, independent power providers and energy service providers with another generation choice, improved power quality and more reliable service.

Contact Connie Bruins, California Energy Commission
(916) 654-4545 cbruins@energy.state.ca.us

Complete details and extensive documentation, and details about the conference, are available on the website



** DPCA Distributed Power Coalition of America

DPCA is a new advocacy group whose mission is to remove regulatory impediments that block distributed power or tilt the rules against its optimal use, through direct mail, testimony to Congress and regulators, and building a grassroots network. It will be technology and fuel neutral.

Its founding was initiated by Solar Turbine and 3 utilities, PECO, NIPSCo, and SCE, and is being incubated at the INGAA, a gas pipeline industry organization (see below). Other members include PSE&G, Allison, Capstone, Stone & Webster, Columbia Gas, and Pan Energy-Duke. A kickoff meeting was held on May 12.

The first Annual Meeting is scheduled for September 10-11, Washington DC. The purpose is to begin a dialogue between the distributed power industry and government decision makers from DOE, FERC and Congress. Speakers include A.J. Bennett Johnson, former US Senator; Anthony Prophet, President Allied Signal Power systems; Christopher D Maloney, VP and General Manager, Unicom Resources; Henry Linden; David Rohy, CEC; and others.

For agenda and registration information,
call Ms. Cris Richards, 202-626-3226 fax 202-626-3241

R. Skip Horvath, Executive Director, DPCA
555 13th St. N.W., # 300 W
Washington, D.C. 20004
202- 626-3225 fax 202-626-3241

INGAA –Helping Companies Today Build for Tomorrow

The Interstate Natural Gas Association of America (INGAA) is a trade organization that advocates regulatory, legislative and individual positions of importance to the natural gas pipeline industry. INGAA’s membership includes virtually all of the interstate natural gas transmission companies operating in the United States, as well as comparable companies in Canada, Mexico, Europe, Asia and South America.

INGAA’s members include 30 U.S. interstate pipelines, six Canadian interprovincial pipelines and 13 international pipeline companies. Membership opportunities are extended to other segments of the natural gas industry through INGAA’s Associate, Financial Affiliate, International Affiliate and Foundation membership programs.


** Distributed Generation Forum (GRI)

(from GRI press release on their website)

Representatives from 26 electric and natural gas industry organizations, power generation equipment manufacturers and the federal government have created a forum to examine the benefits of expanded use of distributed power generation in the increasingly competitive electric market.

The Distributed Generation Forum members will evaluate the potential for distributed power generation – primarily natural gas-based applications – to help energy-service providers identify cost-effective ways of meeting their customers requirements. Onsite Energy Corp., Carlsbad, Calif., and George C. Ford & Associates, Princeton, N.J., will assist the forum by analyzing the potential impact of electric industry restructuring trends on the distributed generation market and evaluating market applications, equipment performance and cost targets related to electric industry deregulation.

In simplest terms, distributed generation integrates small modular power generation units (typically 25kW to 25MW) into a utility’s power grid, or transmission and distribution system. Expanded use of gas-fueled reciprocating engines, gas turbines and fuel cells – strategically placed between central power stations, substations and energy customers – could provide power to extend a utility’s power grid.

GRI and others think there is great potential for the distributed generation concept to offer a cost-effective means of meeting growing peak demands for a utility’s existing customers while serving new commercial or industrial customers,” said Dan Kincaid, power generation business development manager for Gas Research Institute and member of a steering committee that created the forum. “Though distributed generation has seen limited applications to date, the forum will seek to fully develop the economic and operational benefits for providers and distributors of electricity and their customers.

GRI’s goal is to ensure that gas-based distributed power generation will provide attractive, cost-effective energy service for the evolving electric power market,” Kincaid said. “Such a contribution will ensure that electricity users, gas utilities, power generators and distributors will benefit as the electric power market continues to evolve.”

Other forum participants are Allison Engine Co., AlliedSignal Inc., Collaborative Advanced Gas Turbine Program-LLC, California Alliance for Distributed Energy Resources, Caterpillar Inc., Coltec Industries, The Consumers’ Gas Company Ltd., Cummins-Onan, Distributed Power Coalition of America, Duke Power Co., Electric Power Research Institute, Elliott Energy Systems Inc., Illinois Power Co., International Fuel Cells Corp., Peco Energy Co., Southern California Edison Co., Southern California Gas Co., Solar Turbines Inc., Southwest Gas Corp., Transalta Utilities Corp., Union Electric Co., U.S. Department of Energy, Westinghouse Corp., and Woodward Governor Co.

The forum was first offered in Nov ’96, at the suggestion of another GRI industry group, the Gas Engine Technical Advisory Committee. The first meeting was held in May ’97, and the next meeting is scheduled for September 30. The third meeting will be held in February ’98

The primary benefits of membership are the dialogue at forum meetings that results from addressing precompetitive issues affecting distributed generation, and the increased understanding of this new generating practice provided through the immediate access to the assessment results funded from member fees. This information will be available to non-members after one year.

The membership fee is $10,000 for 1997, with a 1998 fee that has not yet been established. The forum is not seeking additional members, but will accept new members that join prior to the September 30, 1997 meeting.

Questions should be addressed to:

Dan Kincaid, GRI Business Development Manager, Power Generation
773-399-8338, dkincaid@gri.org

Paul J. Bautista, GRI Program Team Leader, Distributed Generation,
773-399-5460, pbautist@gri.org


**EPRI Website on Distributed Generation

Provides information about EPRI programs and links to other sites



** “North American Distributed Generation System Markets”
Frost & Sullivan, Report: 5578-14
March 26, 1997, 331 pages, $2950

(from Frost & Sullivan website and press release)
According to recent strategic research from Frost & Sullivan, North American Distributed Generation System Markets have seen a shift occurring since the early 1990s towards on-site distributed power generation. Electronic control systems are now allowing for remote dispatching, and combustion turbine engines are smaller, more powerful and have increased energy efficiency.

The distributed generation technology market is in flux as utilities and other energy providers await federal government pronouncements concerning deregulation of the electric power industry. The best way to navigate this rocky period successfully is to understand what to expect and be prepared to act. This report’s detailed comparative energy-demand projections and unique economic methodology for calculating energy costs can equip companies for this path.

A detailed four page summary of the report is available via fax.

CONTACT: Ben Lerich, Frost & Sullivan,
415-237-6508 fax 415-961-5042
blerich@frost.com http://www.frost.com


Distributed Utility Associates

DUA provides analytic, technical and policy consulting to utilities, technology developers and energy research organizations, with an emphasis on the Distributed Utility concept and electric industry restructuring. DUA also provides evaluations of prospects for and impacts from utility application of advanced renewable, efficiency and storage technologies.

Mr. Joe Iannucci, DUA’s principal, is a recognized leader in the DU field, and is an active contributor in many of the distributed generation and storage programs around the country. He did a study a couple of years ago: “Gas Industry Distributed Utility Market Analysis,” January 1996, funded by GRI, which is available from DUA.

Joe Iannucci, Principal 510-447-0604 fax 510-447-0601
Distributed Utility Assoc. dua@ix.netcom.com
Livermore CA

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