There are a lot of small scale, grid-connected electricity generation opportunities within major cities (otherwise termed embedded or distributed generation).
There are also well documented benefits to the distribution and transmission systems from having embedded generation. So in theory by providing embedded generation you should also get paid for the benefits.
On the flipside distribution network service providers have recognised there are difficulties in providing such a service and have played hardball on paying for any benefits. This lack of pricing for the benefits has effectively sterilised a lot of embedded generation opportunities.
There is one major exception – Solar PV. The solar PV industry has been arguing for recognition of network benefits to be recognised and through feed in tariffs have effectively won, which is great as it is helping stimulate economies of scale in manufacturing and sponsoring expertise in design of systems and installation.
However, co-generation, tri-generation, and even simple diesel/petrol or gas reciprocating engines can also provide network benefits and probably at a lower cost than Solar PV.
If embedded generation is as much of the future as has been touted for a long time now then shouldn’t we be looking at a system that is agnostic about technology; after all the carbon tax will help sort them all out in a market based economy.
Note: I work as a project and energy economist with companies and governments on geosequestration,wind, geothermal, hydro, wave, transmission networks, coal seam gas, coal,and more. The views expressed in this blog are solely my own and do not represent the views of any organisation that I do work for.
No comments:
Post a Comment