Cogeneration, Combined Heat and Power and Distributed Generation
One way for us to bring value to our client is for us to introduce them to the best modular Combined Heat and Power (CHP) and Cogeneration (Cogen) plants on the market. Traditionally, Cogen and CHP have been viewed by the industry as a threat, but we aim to change that perception by showing how its incorporation can benefit power companies. By providing power closer to the end user power companies provide improved service to their customers while improving the stability of their business.
We believe that when energy companies are willing to offer their customers the best technology available, everyone benefits. In the case of CHP and Cogen, when power companies use their existing infrastructure and add these technologies the following benefits are realized:
- Increased grid reliability
- Reduced stress on the grid/transmission
- Higher reliability to the end user
- Lower overall costs for electricity and thermal input for the end user
- Protection of market share for the power company
These are the technologies that we see making the largest impact in the power industry right now:
Small modular CHP <10MW
- Gas Engines
- Biogas Engines
- Absorption Chillers
These technologies are mature and competitive. They are relatively unknown to the potential users and therefore offer a significant opportunity if energy companies adopt them into their portfolio. Though small in scale, small modular CHP can make a large impact on a system when aggregated and integrated with smart controls/smart grid.
Large CHP >10MW
- Gas & Diesel Engine Sets
- Gas and Duel Fuel Turbines
There are already many large CHP systems in place. These systems are largely driven by project economics and the end user’s willingness to take ownership and responsibility for their own power and thermal supply. Third party developers have built entire companies around this market. With natural gas prices low and projected to remain low in a reasonable time period to earn a return on investment, it makes sense for energy companies to explore the possibility of developing more on-site power tailored specifically to customers’ needs.
PV Solar and Battery Storage
- Residential Solar
- Commercial/Industrial Solar with Battery Storage
- Battery Storage
Solar with storage is probably the most threatening possibility for utilities and distributors. Although, it has not reached grid parity in most markets, it has in Hawaii and is projected to reach parity in California and New York in 2015 and 2016 respectively. This technology represents the largest threat because it is the easiest for customers to implement without the help of the power company. A large scale deployment of solar plus storage could spell tremendous trouble for utilities in terms of stranded assets and reduced power sales revenues. At White Harvest Energy we are working hard in this area to stay on top of the best batteries and panels available in order to help power companies include them in their portfolios. We are also actively involved in partnerships and licensing agreements with national labs on technologies that we feel will be game changers in the panel and battery markets.