tag:blogger.com,1999:blog-6199410.post7832759363716252583..comments2023-12-27T08:02:59.927-05:00Comments on Energy Outlook: Threats and Opportunities of Distributed Power GenerationGeoffrey Styleshttp://www.blogger.com/profile/18047970229068397492noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6199410.post-53585605198355676822014-10-13T15:08:12.106-04:002014-10-13T15:08:12.106-04:00South African’s need to take responsibility for th...South African’s need to take responsibility for their own future and the sooner we realise that we cannot be 100% dependant on Government to provide electricity, the sooner we will become creative in finding solutions. Major businesses should take the lead and present government with solutions which is not focused on what do we get out but rather what can we offer. Major businesses invest continuously in new buildings. These buildings should be design to utilise natural resources such as solar energy. Not only will green buildings reduce demand on current Eskom produced energy, but these businesses should be able to push back excess energy into the grid at a nominal fee to enhance available levels. The catch again is to have proper legislation in order to ensure that Government is not reselling energy generated by businesses back to local communities at ridicules prices. These type of models will be costly, but if major businesses are guaranteed that communities will benefit from their effort at reasonable prices, bigger participation will follow.Marco van der Walt (14020140)noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-40919311748692466902014-10-13T08:37:27.835-04:002014-10-13T08:37:27.835-04:00Mr. Ramotho,
More unexamined assumptions there tha...Mr. Ramotho,<br />More unexamined assumptions there than I can shake a stick at. Re solar, please take a look at <br />http://energyoutlook.blogspot.com/2014/10/calibrating-solars-growth-potential.html Geoffrey Styleshttps://www.blogger.com/profile/18047970229068397492noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-3437967340524479452014-10-13T06:37:28.638-04:002014-10-13T06:37:28.638-04:00it is quiet unanimous that solar power systems tha...it is quiet unanimous that solar power systems that could be put in place to distribute energy through a vast area can be cost-effective than the traditional net metering systems which most states have entrenched on its citizens. if only the government could aid in more distribution of solar panels,that could result in world being deemed as clean considering the zero-emission rule manifested globally. this means that firms using or profiting from gas could be the only users of toxicity element in nature and all households could use energy from the sun or other natural forms such as ethanol gas.Anonymoushttps://www.blogger.com/profile/09138468639672579091noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-16941715155888221752014-10-10T08:17:59.537-04:002014-10-10T08:17:59.537-04:00Zaheer Omar
U.S. utilities see both threat and op...Zaheer Omar<br /><br />U.S. utilities see both threat and opportunity in the rise of customer-owned solar systems. Sure, all that new distributed generation could help them avoid building new power plants in the future. But it could also threaten utility business models, unless they’re able to “flip the DG equation” to make it work for them.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6199410.post-56407795871912550502014-09-13T13:27:17.756-04:002014-09-13T13:27:17.756-04:00Energy provides everything from economic growth to...Energy provides everything from economic growth to sustainable civilizations. Basically without energy there is no bulk production of food, employment, transport, education or medical facilities Not just the basics of civilization but all the luxury items as well. <br /><br />Those of us that have energy can't live without it. A sustainable and affordable energy supply is no longer enough. Nations must also strive to have an independent energy supply. Independent energy <br />supply is when a nation is self sufficient in supplying all of it's own energy requirements; hence it is not dependent on another country to supply its energy or its energy fuel. <br />Michealhttp://www.oilandgasrepublic.comnoreply@blogger.comtag:blogger.com,1999:blog-6199410.post-50262650691550363432014-09-06T02:29:22.737-04:002014-09-06T02:29:22.737-04:00Fine post about Solar Power Generator. Explore mor...Fine post about Solar Power Generator. Explore more about <a title="Solar Power Generator" rel="nofollow">Solar Power Generator</a>Nirojhttps://www.blogger.com/profile/16833467317326622989noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-78811446697101821222014-09-04T10:57:13.959-04:002014-09-04T10:57:13.959-04:00Geoff,
The utilities' dilemma, interestingly ...Geoff,<br /><br />The utilities' dilemma, interestingly enough, can be understood by considering the difference between grid-connected and grid-independent on-site generation.<br /><br />The grid-independent on-site generator requires greater generation capacity, to assure that it can meet total demand, even when generation is unavailable. Storage is also required to time shift excess power available at times of peak generation to periods of low/no generation. The grid-independent generator also requires a more sophisticated power inverter, capable of providing AC frequency control, since the system cannot rely on the grid for frequency control.<br /><br />Grid-connected on-site generators rely on the utility to provide for all of their needs, with the exception of whatever quantity of power they are able to produce. Effectively, the utility grid offsets the need for additional generation, storage and AC frequency control. Ed Reidnoreply@blogger.comtag:blogger.com,1999:blog-6199410.post-76168832025782479052014-09-04T09:27:40.265-04:002014-09-04T09:27:40.265-04:00Geoff,
Yes. That is the Regulatory Compact under ...Geoff,<br /><br />Yes. That is the Regulatory Compact under which the utilities made their investments in physical plant and accepted relatively long (`40 year) depreciation periods.<br /><br />Ed Reid (aka Anonymous above)Ed Reidnoreply@blogger.comtag:blogger.com,1999:blog-6199410.post-62034526953236695662014-09-03T16:49:16.309-04:002014-09-03T16:49:16.309-04:00So in effect the utility should be able to recover...So in effect the utility should be able to recover the cost of maintaining the assets necessary to distribute the customer's surplus generation and provide backup supply, up to the customer's peak demand, right? I'd like to hear from someone on the other side of the net metering debate why that wouldn't be fair. Geoffrey Styleshttps://www.blogger.com/profile/18047970229068397492noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-67998983144338900562014-09-03T15:03:12.913-04:002014-09-03T15:03:12.913-04:00Geoff,
Utilities earn a return on ratebase, or ne...Geoff,<br /><br />Utilities earn a return on ratebase, or net physical plant in service. A utility with no undepreciated assets in service thus has no earning potential. Therefore, utilities are not reluctant to invest in physical plant.<br /><br />The distribution facilities necessary to deliver power to net metering customers are already in place; and, they are used to move power both to and from the customers' meters. In the case of new structures designed to include on-site generation, the utility is still required by regulation to supply all of the power the customer requires, when the customer requires it. Therefore, the utility infrastructure required to serve the customer in not reduced, since it cannot be designed for average consumption, but must be designed for peak demand.<br /><br />The same situation pertains to generation as well. Generation capacity, whether utility-owned or under contract, must be capable of meeting aggregate customer peak demand.<br /><br />The situation net metered customers would rather not recognize is that they are making greater use of distribution facilities than non-generating customers, since they are using the facilities to deliver their surplus electricity to the utility; and, they are requiring the utility to instantaneously balance load on the distribution network, to accommodate power deliveries they cannot control.<br /><br />Generating customers buy and sell a fungible commodity. The price they pay for that commodity and the price they are paid for that commodity should be the same. However, that price should represent only the commodity, not investment recovery and profit.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6199410.post-9232823216083237692014-09-02T09:53:15.381-04:002014-09-02T09:53:15.381-04:00Ed,
Sorry for the tardy reply. One of the argument...Ed,<br />Sorry for the tardy reply. One of the arguments for net metering on the current basis is that it helps utilities avoid investments in generation and distribution, and thus saves them money. What's your take on that?<br /> Geoffrey Styleshttps://www.blogger.com/profile/18047970229068397492noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-61067878118496135222014-08-28T08:30:23.789-04:002014-08-28T08:30:23.789-04:00Geoff,
The electric utility industry made a major...Geoff,<br /><br />The electric utility industry made a major error when it accepted the concept of net metering. That error had minimal financial impact initially, but that impact has grown as on-site generation market and installed base has grown.<br /><br />Electric utilities recover only a fraction of their fixed costs and return on investment in the fixed portion of their rates (monthly service charge). The remainder of their fixed costs and return on investment are required to be recovered through the variable portion of their rates (energy charge). This is the underlying reason why utilities under-earn their allowable rates of return during economic slowdowns or periods of milder than normal weather; nad, over-earn their allowable rates of return during periods of strong economic activity and unusually warm simmers or cold winters.<br /><br />Net metering thus refunds to the on-site generator not only the value of the power supplied to the grid, but also the portion of the utilities' fixed costs and return on investment collected through the variable portion of the utilities' rates. While this provides an attractive return to the on-site generator, it deprives the utilities of a portion of their fixed cost recovery and allowable return; and, in the utilities' next rate cases, transfers that portion of the fixed cost recovery and allowable return to the utilities' non-generating customers.<br /><br />The solution to this problem is technically simple and politically difficult. Permitting full recovery of fixed costs and allowable rate of return on ratebase through the fixed portion of the utilities' rates is the proper way to achieve this result. The approach of imposing an on-site generation surcharge being pursued by state commissions, such as the Arizona commission, attempt to ignore the underlying cause of the problem, while making the utilities appear greedy and uncooperative.<br /><br />The state utility commissions are responsible for the rate structures which cause this problem; and, they have it within their power to solve the problem. However, they appear to be less than willing to do so transparently.Ed Reidnoreply@blogger.com