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bioweb.sungrant.org » Technical » Biopower » Distributed Generation

Distributed Generation	Printer Friendly

Biopower is the use of biomass resources to produce, either singly or in combination, electricity, heat/steam, and cooling. The U.S. used 1.8 Quads (1 Quad = 1015 Btu) of wood and waste to generate electricity (0.87 quads) and useful thermal output in 2005. About 1.5% of the total electricity generated is the U.S. is from biomass (DOE, 2006).   Distributed generation is typically defined as using small-scale production of electricity at or near the load being served. Distributed generation can come from conventional or renewable technologies, including biomass. Many commercial and industrial customers value highly reliable electricity service, which can be provided by on-site generation, either solely as electricity generation or electricity generation from a combined heat and power (CHP) operation.   Distributed generation is distinguished from traditional electricity generation by location (at or near the location of use); capacity (small <1 MWe); and ownership (nonutility). Distributed generation, if done properly, can potentially lower the overall cost of electricity; enhance the reliability of the power grid; reduce the need for investment in transmission and distribution to serve growing demand; and improve environmental quality (CBO, 2003).   Barriers to the greater use of distributed generation include contractual and technical interconnection requirements; surcharges imposed by utilities on operators of distributed generation for standby services; price of electricity received by the distributed generator; and environmental and permitting requirements of local governments.   Preliminary evaluations of a variety of small modular biopower systems estimate capital costs of around $1700/kW for a 5 MW unit and between $3000 and $4000/kW for a 1 MW system (Bain, 2000).

References
Bain, R.  2000.  Small modular biopower initiative phase I feasibility studies executive summaries.  NREL/TP-510-33502.  National Renewable Energy Laboratory, Golden, CO.  Congressional Budget Office, Washington, DC, (2003).  Prospects for distributed energy generation. Accessed at: http://www.cbo.gov/showdoc.cfm?index=4552&sequence=0.  U.S. Department of Energy, Energy Information Administration, 2006, Monthly energy review, November 2006, Washington, D.C.  Accessed at: http://www.eia.doe.gov/emeu/mer/pdf/mer.pdf.