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Distributed
Energy Resources (DER)
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As part of debates
on electricity reliability, Institute staff are examining policy
options to help develop and deploy technological innovations such
as DER. The average efficiency of the U.S. electricity-generation
system has been stagnant over the past several decades, but the
potential gains from currently-available technologies are substantial.
Therefore, innovation-based electricity reforms could remove the
numerous legal, regulatory, and perceptual barriers that block the
introduction of innovative energy technologies.
DER includes
distributed power, heating, cooling and related technologies and
electric and thermal storage and demand management. It includes
energy-efficient technologies and renewable energy applications.
The
Institute identifies barriers to energy-efficient technologies and
applications like combined heat and power (CHP) and other forms
of clean distributed generation. The Institute also plays an integral
role in the Department of Energy’s Industries of the Future
(IOF) program, working with states and industries on integrated
approaches to manufacturing modernization that focus on productivity
as well as energy efficiency. DER is one facet.
Institute
staff see the integration of energy-efficiency into the older manufacturing
plants as well as new developments as a means for the region to
keep up with, and potentially become, a leader in the global economy.
This is through the energy savings (cost and supply), productivity
increases, and lowered emissions that can be realized through innovative
clean energy technologies and applications.
Combined
Heat & Power (CHP)
Combined heat
and power (CHP) technologies produce both electricity and steam
from a single fuel at a facility located near the consumer. These
efficient systems recover heat that normally would be wasted in
an electricity generator, and save the fuel that would otherwise
be used to produce heat or steam in a separate unit.
Noting
that Northeastern and Midwestern states enjoy few energy resources,
the Northeast-Midwest Institute and Coalitions have advanced technologies
and practices that enable the region's residences and businesses
to use energy efficiently. In that regard, the Institute in
late 1998 helped form the U.S.
Combined Heat and Power Association. Institute staff served
as conference coordinator for USCHPA's 2005 Policy Summit. The Institute
is also part of the CHP Team headed by the Department of Energy
that meets regularly to address policy and technical issues facing
CHP.
Background
on the CHP Initiative
DOE and EPA
have set forth a goal of doubling the amount of CHP capacity in
the U.S. by 2010. The intent of the goal is to increase the efficiency
of the nation's power generation system by insuring that at least
46 GW of electricity generation capacity added over the next 10
years comes from new CHP plants. Most energy forecasts call for
CHP additions of 4 GW or less over the next ten years.
A CHP
Initiative was created with the Department of Energy and the
Environmental Protection Agency to raise awareness of the energy,
economic and environmental benefits of CHP and to highlight barriers
that limit its increased implementation. The Initiative supports
a range of activities including regional workshops, industry dialogues
and development of educational materials.
In 2001, as
a follow-up to recommendations to promote the use of combined heat
and power in President Bush's National Energy Policy Report, EPA
joined with 17 Fortune 500 companies, city and state governments
and nonprofits in Washington, D.C. to announce the EPA
Combined Heat and Power Partnership (CHPP), a more efficient,
clean and reliable alternative to conventional electricity generation.
CHP Fact
Sheets
CHP Reports
An expansive
list of CHP Reports is on the USCHPA
website, under "Papers & Articles."
General CHP
Presentations
For
more detailed presentations from Capitol Hill briefings,
go to the NEMW
Congressional Coalition Energy Site
Additional
CHP Presentations are available at the USCHPA web site, Presentations
Page.

Power
Parks
Power Parks
are an integrated "systems approach" to delivering power when and
where it is needed. These systems are designed to be more energy
efficient and environmentally sound by utilizing far less fuel to
generate the same or better power than any previous central power
generation or delivery system. Some compare this change to that
experienced in the computer industry with the transition from solely
relying on main frames to greater reliance on laptops, or with energy,
from solely relying on central power plants to a greater reliance
on DER technologies.
A distributed
energy resource (DER) portfolio often found in the Power Park design
concept includes both renewable and fossil energy generation, storage
and energy efficiency technologies. Many of these innovative energy
technologies alone and in hybrid configurations (typically pairing
an intermittent renewable with conventional generation), are found
in applications, such as combined heat and power (CHP), supplying
power, both thermal and electrical, in grid and off-grid markets.
Developing old
or abandoned industrial sites is a critical "smart growth" strategy
for economic development in urban areas. Smarter use of resources
in expanding suburban areas is also critical. In order to provide
energy consumers valued-added solutions, attract new industry and
create jobs, there is an essential need to provide reliable, energy
efficient power while maintaining a sustainable environmental quality
of life.
Power Parks
could play an integral role in a restructured energy marketplace.
Customers demand solutions based on power quality and reliability.
DER technologies are cleaner, more efficient, more environmentally
sound, and as deployed in Power Parks can improve our energy management
opportunities in both the near and long term.
Power
Parks and Brownfields
The National
Energy Policy Development Group Report recommends that the President
direct the Administrator of the Environmental Protection Agency
(EPA) to work with local and state governments to promote the use
of well-designed combined heat and power (CHP) and other clean power
generation at brownfield sites, consistent with the local communities'
interests. The EPA will also work to clarify liability issues if
they are raised at a particular site.

Productivity
and Innovation
Institute
staff have advanced an integrated approach to manufacturing modernization
that focuses on productivity as well as energy efficiency.
For instance, they work closely with manufacturers, state officials,
and utilities in several states. With Ohio's Department of
Development and Environmental Protection Agency, for instance, they
published a guidebook for Ohio-based manufacturers. With the
New Hampshire Governor's Office of Energy and Community Services,
they are helping to train high school students to provide energy
efficiency audits to small businesses.
The
Institute -- in partnership with the Metal Casting Center, ComEd,
and North Business and Industry Council -- developed an industrial
efficiency pilot program targeting metal casters in the Chicago
area. It is working with the New Hampshire Governor's Office
and the Business and Industry Association on an initiative designed
to measure and promote energy efficiency and waste reduction among
New Hampshire manufacturers. Moreover, they are cooperating
with the California Energy Commission, Pacific Gas & Electric,
the Electric Power Research Institute, and the California Manufacturing
Association to hold workshops on manufacturing technologies and
financial options.
In
addition to numerous articles, Institute staff have written Utilities
and Manufacturers: Pioneering Partnerships and Their Lessons for
the 21st Century (99 pages), describing the wide-ranging benefits
that can be gained from utilities and manufacturers working together,
Financing Manufacturing Efficiency and Growth: A Manufacturer's
Guide to State and Federal Resources (334 pages), as well as
Implementing Industrial Energy Efficiency (34 pages).
The Northeast-Midwest
Institute works with the U.S. Department of Energy in its Inventions
and Innovations Program to help inventors and innovators commercialize
efficient and productive technologies. The Institute also
works closely with State Industries of the Future (IOF) Programs
to develop strong state-industry partnerships in energy efficiency.
The Institute has organized conferences in Albany, New York, and
Cleveland, Ohio, New Hampshire, Massachusetts and more.

Articles
- The
Electricity Journal,
November 2005. "From Edison to Enron." Kenneth Lay's secret partnerships
and deceitful accounting certainly hurt Enron's investors, customers,
and employees and tarnished his reputation, even if he's not found
guilty of any crime when he goes to trial in January. Yet like
Samuel Insull a century before him, Lay's trial probably won't
stop the revolution he advanced within the power industry.
- Issues
in Science and Technology (the quarterly journal of the
National Academies of Science), Winter 2006. "Yes, in My Backyard:
Distributed Electric Power." Clean, efficient, and reliable small-scale
generators are ready for action if we can clear away the regulatory
barriers.
- Northeast-Midwest
Economic Review, Fall 2005. "Let Energy Innovation Thrive."
Describes how modern technologies -- if not blocked by outdated
policies -- can bring innovation and efficiency to the electricity
industry.
- Cogeneration
and On-Site Power Production, January-February 2006. "The
Need for Electricity Innovation." Outlines how America's electricity
generation and distribution system is outdated, overloaded, and
wasteful. A policy revolution is needed to encourage innovation
and establish fair market rules.
- Federal
Reserve Bank of Chicago,
February 2006. "Innovation in Electric Power?" Description/blog
of Richard Munson's talk at the Federal Reserve Bank of Chicago.
- Dialogue,
March 2006, Journal of the U.S. Association of Energy Economics.
"Let Electricity Innovation Thrive."
- On
Point. E&E
TV, May 2006. After a massive blackout hit the Northeast in August
2003, lawmakers and energy experts called for sweeping changes
to U.S. energy policy. But did last summer's energy bill adequately
address the problem? And what actions should the Federal Energy
Regulatory Commission take to prevent future power outages? During
today's OnPoint, Richard Munson, author of the book "From Edison
to Enron: The Business of Power and What It Means for the Future
of Electricity," answers these questions and looks at innovations
happening at the state level.
- The
Abell Report,
May 2006. "Maryland's Electricity Opportunity." Modern technologies
could increase electricity reliability, enhance consumer choices,
and reduce pollution. Click
here to read the longer report, "Maryland's Electricity Opportunity:
How to Fix the Power Breakdown and Pave the Way to Innovation,
Efficiency, and Competitive Rates."
- Baltimore
Sun, June 4, 2006. "Maryland Needs an Energy
Overhaul."
- Northeast-Midwest
Economic Review, Spring 2006. "Electricity After Insull."
Market rules need to enable an array of innovative electricity
technologies to compete fairly.
- Smart
Grid Newsletter, July 2006. "Why a Modern Grid is Essential
to Modern America."
- Management
Quarterly, a journal of the National Rural Electric
Cooperative Association. Summer 2006. "Electricity
After Insull."
- Spark, the on-line gateway for readers of Public
Utilities Fortnightly magazine. August 2006. "Environmentalists
Stymie Electricity Efficiency and Innovation."

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