To satisfy daily electrical demand, the electricity grid previously relied entirely on huge power plants. However, technological developments have enabled the energy system to rely on a far larger spectrum of generating, consumption, and storage assets, resulting in a smarter grid that can be dynamically modified to meet demand throughout the day.
Power generation has the potential to transform the availability of sites and power producing assets into a lucrative income stream, fostering sustainable growth and enhancing business agility.
What is Power Generation?
This is when power generation equipment is utilized to supply electricity to the network during moments of high demand. You are then paid through the system operator reimbursing you for that electricity.
You won’t have to pay anything to have the generators installed, and the contract will cover all maintenance and operation costs as well. In order to ensure you get the most profit out of the process, we can also combine the various components of your project.
If you have energy production resources on site, such as combined heat and power (CHP) plants or battery storage, you could earn valuable extra income for your business by optimizing those assets in different ways.
How can power generation benefit your business?
- Earn money by assisting the grid during peak hours.
- Fast start-up for entry into response time-based markets
- Reducing your total energy costs and the payback time on your investment
- Earn an income from the excess electricity you generate
- 1-50MW capacity through multiple engines offer flexibility and scalability
- Single point of supply with end-to-end service – just add fuel
- Best value, most efficient engines on the market
Is Power Generation right for my business?
Businesses with vacant land and those with unused power-generating equipment are the two categories of companies that can profit from power generation.
Vacant Land
If your site is available and is 50m2 or larger, you could use that land to generate revenue for your business. For the land to export electricity to the grid, it only has to be adjacent to a grid link.
Unused Assets
If your company has power generating assets that aren’t used then these can also be used to make money.
We may take care of any necessary asset renovations before managing the whole operation, upkeep, and optimization of a power generating plan on your behalf.
Why is Power Generation important?
To reach the goals for combating climate change, the final coal-fired station in the UK will be shut down in 2025. The grid becomes unstable when there are fewer large, centrally located power plants like this, and the expansion of intermittent, more broadly dispersed renewable power adds to this effect.
The knock-on effect of this is a need for more flexible generation, which can be met through both management of supply or doing your own power generation with Energy Solutions.
Power Purchase Agreements (PPAs)
PPAs are long-term agreements for renewable energy. They are becoming more and more well-liked by large corporations, SMEs, and local governments. Why? They help with the energy transition by providing a dependable means of decarbonizing power use.
Advantages
A Power Purchase Agreement offers long-term price stability, the ability to finance investments in new power generation capacity, and the reduction of risks associated with electricity sales and purchases.
The contract’s open-ended design also allows for a great deal of flexibility in reflecting the preferences of individual plant operators and electricity consumers. This also applies to pricing: PPAs can be signed with fixed prices or with the ability to participate in market risks and opportunities.
Disadvantages
PPAs are complex contracts that frequently require extensive discussion and negotiation before being agreed upon. If price developments turn out to be unfavorable for one party, PPAs’ long duration may be a disadvantage. The actual production of electricity itself can fluctuate, particularly when it comes from photovoltaic and wind energy.
There are many different questions and queries you may have when considering the best PPA.
To read more about PPA’s & how they fit your business, visit:
https://www.energybrokers.co.uk/news/economic-updates/power-purchase-agreements
Power Generation – For Developers & Funders
This section is to help you understand all the elements that should be considered when looking at funding a power generation scheme.
As a developer, these are also things to look for.
Power generation assets can participate in the capacity market and provide ‘off the shelf’ balancing services to support the grid – increasing value for investors. Value is created in many ways:
- Turn vacant or excess property or structures into money
- Supporting the grid at peak periods might bring in money.
- Reach adjacent markets to increase profits
- Using market information to increase trading profits
These are a variety of things you would expect to see offered from a company from when searching for power generation.
High Speed Engines
High speed engines are capable of producing between 1MW and 2.5MW of electricity while spinning at 1500 rpm. These fast engines operate at an efficiency rate of 40–43%. High-speed engines are often containerized and have a straightforward modular design that is suitable for unused land or abandoned manufacturing units or warehouses.
Medium-speed engines
They can produce between 5MW and 20MW while running at 500–750 rpm, and a modular design can produce up to 50MW. These engines generally have an efficiency of 44 to 50 percent. With a more individualized approach, medium-speed engines are incorporated within acoustic structures and are appropriate for specially designed operational areas or abandoned land.
Implementing your Power Generation solution involves a number of steps.
Gas Supply
It is best to look for flexible gas contracts to suit your risk profile.
At Energy Solutions, energy procurement is our forte, and we handle all the research, tendering, management and more to ensure you’re not overpaying for businesses gas. For over 20 years, we’ve forged strong partnerships with suppliers so you can be confident you’re getting a good price.
We know your business has different power and gas needs, so you should feel confident in choosing a supplier who can help your company in every way.
There are a variety of different gas contracts, here are some of the most commonly found ones:
Deemed and out-of-contract
If you move into new business premises without first agreeing on a contract, a deemed contract usually applies. If your current contract expires but the supplier continues to supply you with energy, you may be on a deemed or out-of-contract contract.
These types of contracts are typically among the most expensive for a supplier.
Fixed
For the duration of the contract, you are charged a fixed rate per unit of energy (measured in kWh). This does not affect your total bill, which will fluctuate based on your energy usage.
Variable
Where the cost of energy (measured in kWh) is linked to market activity. As a result, your rate per unit of energy may fluctuate throughout the term of your contract.
Rollover
This usually applies if you haven’t agreed to a new contract before your current one expires and there are no renewal provisions. This contract cannot be longer than 12 months if you are a microbusiness.
For more visit: https://www.energybrokers.co.uk/gas/procurement
Technology
As a business owner, you are most likely looking for medium and high-speed engines to meet your project needs.
You can see above the difference between medium and high-speed engines.
The main components of an electric generator can be broadly classified as follows:
- Engine
- Alternator
- Fuel System
- Voltage Regulator
- Cooling and Exhaust Systems
- Lubrication System
- Battery Charger
- Control Panel
- Main Assembly / Frame
Design
Online systems such as CAD and 3D modelling software’s can be used to provide detailed designs and schematics of the proposed sites, in order to maximize availability and to ensure ease of running.
Manufacture
The usual types of speed engines are high-speed and medium, and with any kind of producing unit, they are designed to be modular so that several engines may be placed next to each other to produce more power at higher levels.
Connecting to the grid
Through bay or tertiary connection assets, you can connect to the transmission system as a demand or generation customer.
There are several fees that you must pay in order to connect to the transmission system. Your connection’s type, size, and location will affect the costs.
Each project’s timeline will be different because it will depend on the kind, size, and location of your connection as well as a number of planning requirements.
https://www.nationalgrid.com/electricity-transmission/connections/how-do-i-connect
Some enegry companies will assist you with all aspects of connection, including conversations with network operators, ensuring gas mains are properly located, and ensuring that the quantity and quality of the supply are acceptable for the anticipated uses on the site.
Operational performance
Our staff is ready all year round to optimize the performance of your power production solution. We also provide long-term remote asset monitoring, planned and reactive maintenance, and unit overhauls.
Installation
When looking for a quick and easy installation process, you’ll want to ensure you have the right team for your site.
Your generation site may be from 1MW unit all the way up to 50MW, so it’s important you chose the team with the knowledge and experience to offer best value and maximize plant performance.
Ancillary Services
Ancillary services, such as balancing and frequency response, take care of National Grid’s unique requirements that are contracted for a brief period of time. These services assist the grid in maintaining a continuous supply to maintain the appropriate levels of the country’s supply.