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Onsite Power
Generation
Economic Indicators for
Companies that benefit from Onsite Power Generation
Businesses with the following energy features are
prime candidates for privatized power projects:
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Companies with a significant electricity to primary fuel
"spark-spread".
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Facilities that maintain a significant year-round heating and
cooling load.
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Industry that can utilize waste heat from an onsite generation
system for process.
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Businesses which are planning new, or expansion of facilities and
processes.
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Industries that are losing substantial production due to unplanned
utility outages.
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Companies in areas with favorable utility regulations & tariffs for
self-generation.
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Businesses that need to augment power & heat production of existing
facility.
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Industries that install smaller systems that can often run at
capacity continually.
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Area businesses with a range of available fuels (including biomass,
wells, etc.)
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Facilities with long hours of operation & reasonably flat
electrical/ thermal load profiles.
Business Indicators of NYS P4J Companies
for Onsite Power Generation:
Business executives often identify other issues which are favorable for
privatized energy projects.
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Corporations that dedicate
themselves to helping with national energy efficiency.
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Facilities that must replace
aging equipment can utilize the advantages of OSG.
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Industries that can
consolidate into fewer facilities w/ extended hours / production.
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Environmental emissions
which can be reduced with onsite fuel consumption.
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Corporate executives who
also want their companies to be identified as ‘Green’.
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Locations that are limited with fuel resources can utilize
alternative technologies.
- Companies that require energy security with
respect to the operation of the facility.
Analytical Inputs Required of Companies for Onsite Power Generation:
Jaker
Engineering, PC has developed our own formulae and economic shortcuts
for quickly evaluating individual businesses. These utilize the
following inputs and reviews from our extensive energy projects
database:
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Spark spread (cost
difference of electrical power and equivalent fuel usage).
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Unit cost of construction
for available energy technologies for conceptual projects.
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Unit cost of generation,
including operations/ maintenance, based on fuel conversion.
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Conversion to $/MMBtu of a
variety of fuel and electricity unit prices for direct comparison.
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Calculation of heat rates
(fuel required per unit of electricity) for major equipment types.
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Identification of utility regulatory rates and standby tariffs to
assess impact on project return.
Project Development Process of Companies for Onsite Power
Generation:
Companies with the best ratio of thermal to electrical load are most
often those with the
best rate of financial return. Of course, with any evaluation system
based on an established set of principles and
formulae, there are exceptions. The most notable exception is in the
form of differing regulatory fees and tariffs for developing onsite
generation in a given region. Other influences include the price and
availability of preferred fuel or the initial capital investment for an
emerging technology.
Typical Input Information Required to Perform an
Initial Energy Evaluation:
- Identify utilities for electric and gas (or
other fossil fuel provider).
- Determine transmission and distribution costs
for both electric and gas delivery.
- Calculate total annual electric and fuel
costs separately for facility and process.
- Determine spark spread from overall annual
per-unit fuel and electric costs.
- Identify all available primary fuels and
determine expected cost per MMBtu.
- Calculate size of project based on limiting
energy load; electrical or thermal.
- Identify regulatory requirements and tariffs
that apply for onsite power generation.
- Identify site level emissions at each
facility; recalculate with onsite generation.
- Determine type of ownership (e.g. turn-key,
third-party build-own-operate, etc.)
- Evaluate facility infrastructure for
electrical and mechanical onsite connections.
- Evaluate typical facility systems and
processes, identify viable technologies.
- Identify the available and applicable
government programs, both State & Federal.
- Align sources for funding, including
third-party, capital investor and developers.
- Identify limiting conditions of operation for
a particular business or industry type.
It is our desire to supply your company
with a high quality, cost efficient energy solution
that will save you money for years to come.
Jaker Engineering, PC also provides private and
public energy seminars.
Energy Seminar Brochure - (PDF Format)
Please contact us for more information.
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