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Financial implications for companies running standby generators in support of a smart grid

Daniels, L., Potter, B. and Coker, P. (2013) Financial implications for companies running standby generators in support of a smart grid. In: CISBAT 2013: CleanTech for Smart Cities & Buildings, 4th-6th September 2013, Lausanne, Switzerland, pp. 727-732.

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Official URL: http://infoscience.epfl.ch/record/190601/files

Abstract/Summary

Integrating renewable energy into built environments requires additional attention to the balancing of supply and demand due to their intermittent nature. Demand Side Response (DSR) has the potential to make money for organisations as well as support the System Operator as the generation mix changes. There is an opportunity to increase the use of existing technologies in order to manage demand. Company-owned standby generators are a rarely used resource; their maintenance schedule often accounts for a majority of their running hours. DSR encompasses a range of technologies and organisations; Sustainability First (2012) suggest that the System Operator (SO), energy supply companies, Distribution Network Operators (DNOs), Aggregators and Customers all stand to benefit from DSR. It is therefore important to consider impact of DSR measures to each of these stakeholders. This paper assesses the financial implications of organisations using existing standby generation equipment for DSR in order to avoid peak electricity charges. It concludes that under the current GB electricity pricing structure, there are several regions where running diesel generators at peak times is financially beneficial to organisations. Issues such as fuel costs, Carbon Reduction Commitment (CRC) charges, maintenance costs and electricity prices are discussed.

Item Type:Conference or Workshop Item (Paper)
Refereed:Yes
Divisions:Faculty of Science > School of the Built Environment > Construction Management and Engineering
Interdisciplinary centres and themes > Centre for Technologies for Sustainable Built Environments (TSBE)
Interdisciplinary centres and themes > Energy Research
ID Code:37698

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