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Commercial / Institutional

Some commercial and institutional applications of Distributed Generation are:

  • Premium power - reduced frequency variations, voltage transients, surges, dips orother disruptions
  • Standby power - used in the event of an outage, as a backup to the electric grid
  • Peak shaving - the use of DG during times when electric use and demand charges are high
  • Low-cost energy - the use of DG as baseload or primary power that is less expensive to produce locally than it is to purchase from the electric utility
  • Combined heat and power (cogeneration) - increased the efficiency of on-site power generation by using the waste heat for existing thermal processes
  • Integrated Steel Sector Cogeneration - mixing industrial blast furnace or coke oven gas with natural gas as a feedstock for combustion turbines, thereby using a waste energy source for on-site power generation and the resulting waste heat from that generation for other thermal processes

Commercial applications, typically but not exclusively, are based on the energy use in buildings and are predominantlythermal load. This limitation can occur in two ways; either the thermal load is inadequate or it is highly seasonal, i.e., non-coincident with electric loads as in the thermal needs for space heating. The simplest integration of CHP into commercial and institutional sectors is in applications that meet the following criteria.

  • Relatively coincident electric and thermal energy usages
  • Thermal energy loads in the form of steam and hot water
  • Electric demand to thermal demand (steam and hotwater) ratios in the 0.5 to 2.5 range
  • Moderate to high operating hours