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One of the newer approaches to meeting
current and forecasted energy demands in the State
of New Jersey is that of Distributed Generation.
Also known as On-site Generation or Decentralized
Generation, Distributed Generation means the
practice of constructing smaller electrical
generation sources that provide a portion of the
respective local power supply.
Presently, almost all consumed energy is
produced at large fossil fuel burning plants,
nuclear power facilities, or in some cases, by
hydroelectricity. For space, health and safety
reasons, these plants are located outside cities and
developed areas requiring the transmission of power
over a lengthy distance, sometimes, as with a
portion of New Jersey’s power supply, across state
lines. Energy is lost through the transmission
process.
Distributed Generation plants offer an
efficient alternative. The generation facilities can
use clean and renewable energy sources (most
commonly solar, wind and natural gas), allowing the
plants to be built on a small scale within or near
cities and developed areas. Consequently, little
energy is lost since it need only be transmitted a
short distance to the local customers. This provides
an efficient neighborhood energy source that reduces
the physical and economic strain on the general
power grid and consequently lowers costs for the
customer. In addition, with today’s technology and
embedded computer systems, Distributed Generation
plants can run very efficiently and with low
maintenance, reducing the cost for this service even
further.
There are a few examples of Distributed
Generation currently being utilized in New Jersey.
One is the wind farm at the Atlantic County
Utilities Authority Wastewater Treatment Plant
outside Atlantic City. The wind turbines provide
approximately half of the energy needed to power the
wastewater facility and any remaining energy is put
into the energy grid at typical resale value. The
plant generates its own power with the virtually
maintenance-free and renewable wind power,
constituting significant savings in utility costs.
Another example of Distributed
Generation is the use of solar panels at individual
buildings or building complexes. The
Toms
River
School District
has placed solar panels on over twenty of its school
buildings providing the district with 20% of its
electrical needs. Being self-powered results in
lower electrical costs.
Natural gas facilities provide a more
reliable source of Distributed Generation than those
dependent on the sun and wind. Compared to coal,
natural gas burns relatively cleanly and
efficiently, giving off low levels of greenhouse
gases. At the Mannington Mills facility in Salem,
New Jersey, Marina Energy operates a natural gas
fired cogeneration plant. The equipment can provide
up to 75% of the total electrical load for the plant
while at the same time producing steam for the
facility. This installation benefits Mannington
Mills by providing an alternative source of energy
and benefits the local electric distribution company
by alleviating strain on their network during times
of high electrical demand.
Another example of a Distributed
Generation facility is the Marina Thermal Facility
located in the Marina District of Atlantic City.
Owned by South Jersey Industries subsidiary Marina
Energy and operated by DCO Energy, the facility
provides cooling, heating, domestic hot water and a
backup power supply to the Borgata Hotel Casino &
Spa. It takes a significant amount of energy to keep
hotels and casinos in operation. By having some
generation on-site, a facility can purchase blocks
of power from the grid and obtain a competitive rate
using the on-site generation to serve the peak needs
of the facility. This strategy protects the
customer from high electric costs and also can
provide a reliable backup in the event of a power
outage.
The Marina District of Atlantic City is
an area undergoing constant commercial development
and is a great example of how Distributed Generation
provides an incomparable resource for customers
invested in economic development projects. Atlantic
City is located on the east side of New Jersey away
from the major power transmission in the northeast.
The inherent cost savings, which can be substantial,
are a result of the increased efficiency that local
transmission provides over long-distance
transmission and the low maintenance that
Distributed Generation facilities require after
initial installation. They reduce the strain on New
Jersey’s power infrastructure and provide, in turn,
an efficient and reliable local electrical supply.
They also mitigate the need to build new
transmission systems preserving precious ecosystems
and the environment. Municipal and County officials
involved in economic development should have
developers evaluate the feasibility and financial
viability of building a Distributed Generation
facility that might further enhance their local
project. The
incorporation of Distributed Generation offers
reliability and savings, making continued investment
in economic development projects attractive and
lucrative. |
