Onsite Gas Power Generation
Distributed Energy Resources (DER)
Distributed Gas Generation: Onsite Power Generation
On-site power generation is known by several names such as Distributed Generation and Distributed Energy. All of these are terms for the same thing – electricity produced at the site of your business rather than imported from the national grid.
What you need to know about reducing utility costs with onsite power generation using gas and reducing CO2 emissions at the same time.
One of the more interesting developments that emerged strongly in 2020 is gas-fired generator sets. So, what’s behind it?
There have been continual and significant rises in UK Power Prices since 2018, at a time when the commodity cost of electricity has actually fallen in historical terms. Why?
Current natural gas prices are low, when compared with electricity. There are abundant supplies and a high degree of competition in the market. In contrast, electricity prices continue to be impacted by non-commodity costs that, along with other non-energy costs, now form close to 65% of UK electricity bills. No matter how low the commodity element of electricity prices goes, retail prices do not drop correspondingly.
The Principal Third Party Electrical Charges
Renewables Obligations (RO) 17%
Contracts for Difference (CFD) 7%
Capacity Mechanism (CM) 4%
Feed in Tarif (FIT) 6%
Total = 34%*
*August 2020
Other costs relate to transmission balancing and losses.
The increase in 3rd party charges could mean its time to invest in self generation.
This means it is now considerably cheaper to generate your own electricity than acquire it from the grid. By doing so, you also eliminate and/or reduce many accompanying overheads such as transmission charges, losses, and capacity costs.
You also have the potential to generate income from the energy flexibility market by making a generator set as an available asset for grid backup reserve.
Gas fuelled generators are changing the landscape of the energy industry by reducing carbon and creating significant savings and/or income for their owners. Essentially, they utilise the cheaper cost of gas (anywhere from 1.7 pence to 3.8 pence per kilowatt hour (kWh)) to generate cheap electrical power in the 8 to 11 pence per kWh range, compared with the typical 14-18 pence per kWh from the grid. Additionally, the heat which is usually lost at power stations can be recaptured and used for either space heating or hot water requirements on your site. dramatically reducing energy costs further.
On-site generation provides security, reliability, and revenue opportunities.
Guaranteed Energy Prices for 10 years
- Budget Security
- Fully Financed - No Cost
- Lower Energy Costs
- Increased Reliability of Supply
How onsite gas generation help me?
As more businesses seek to control their electricity costs natural gas power generation is taking a lead role.
It’s another example of the increase in applications for distributed power, or power generated at or near the point of use. These are increasingly systems with less than 10 mW of generation capacity and used for supplying power to small commercial and industrial sites. Sometimes as part of combined heat and power (CHP) projects and microgrid installations.
The growth in DER, and other types of distributed generation, is transforming the electric grid from one that is based primarily on large central stations to one that is more distributed in nature.
Increased Reliabilty
No longer entirely reliant on the national grid
Fully Financed
Various finance options
Lower Energy Costs
Reduced energy charges and lower heating costs
Budget Security
Forcast with accuracy in 5 yearly increments
How will the energy landscape look in years to come?
- Change driven by increasing demand
- Greater reliance on small-scale, local power production
- Renewable power generation is less predictable and less able to respond to short-term demand change – grid balancing is becoming more difficult
- Changes in Demand with EV charging and home working
Energy-efficient gas generators could become a key solution and would be considered a green source of power when used in conjunction with Biogas, or a biogas supply contract. However, they will need to comply with emissions regulations.
The current demand on the grid for flexibility and reliability can be positively affected by distributed generation, and gas engines will not only act as backup power support but provide a key ingredient of the entire distributed energy sector.
Design, supply and optimisation of on-site gas fueled generation
- Substantial reductions in electricity costs
- Reduced costs for heat and hot water
- Rapid Return on Investment (ROI)
- Environmentally friendly technology
- Full site evaluation confirms site viability
- Full installation and maintenance
Find out how you can benefit by generating your own power.
Find out how you can generate your own power onsite with no Capital Expenditure (CAPEX) and ongoing maintenance costs (OPEX) by using a custom designed
Power Purchase Agreement
Find out how you can benefit by generating your own power.
- Energy cost savings of up to 60% over 10 years.
- No capital expenditure for the customer
- No ongoing maintenance costs
- A fully funded Energy Centre unit is installed at the customer's premises
- Covering electricity grid connection and costs
- Power that is green electricity under the GHG protocol
- Price inflation that is linked to the Retail Price Index (RPI) instead of the energy market prices
- The generating set is available to purchase at the end of the lease period for a nominal amount, dependent on condition.
Battery Energy Storage Systems
The growth in onsite electricity generation has created demand for ways of storing surplus power for use on site.
Gas-fueled generator sets can produce electricity at very low costs and when this is not required, the addition of an electric storage battery allows you to keep power in readiness to meet future demand.
Benefits of On-Site Generation + Battery Storage
- Avoid expense of purchasing power at peak prices
- Ensure supply to energy-critical sites
- Generate revenue by selling energy back to the grid
Clean Gas Generation
On site energy generation using a natural gas generator (CHP)can save up to 40 percent in primary energy and produces up to 60 percent less CO2 emissions than conventional energy producers. The combustion of natural gas produces the lowest CO2 emissions compared to other fuels, as well as no soot emissions.
Post Covid, businesses are looking at methods of reducing costs and increasing business resilience. Generating your own power and heat is a great first step. The design, supply, and installation of an optimal generation system to ensure maximum benefit to meet the requirements of your site.
- Fully Financed
- Reduce Reliance on Buying Power at Peak Rates
- Increased Reliability of Supply
- Generate Revenue
Full O&M Included
Minimise risk with 24 hour Nationwide callout, Nationwide engineer network and 10yr cover
MCPD, ESCo, EPC compliant
State-Of-The-Art Remote Management Software
Full Cover – No Risk
1 Eco Friendly
Low emissions, up to 50% less CO2 produced than by conventional power plants
2 Cost Effective
Business owners can typically save up to 30% on their electricity bills
3 Dependable
Onsite generation is secure and reliable
4 Autonomous
Grid Decentralisation enables you to move away from Centralised Grid Power