Electric power industry distributed generation

Restructuring is the process of completely reorganizing the electric power indiistiy. The generation portion of the industry will become more competitive, while the transmission and distribution portion... 

A.2.3 The Electric Power Industry The total corrosion costs in the electric power industry in the generation and distribution of power were estimated to be 4 billion and the corrosion-related expenditure was estimated at 1.1 billion. A significant portion of excess capacity of power plants was attributed to corrosion, where corrosion-related excess capacity was assumed to be approximately 10% of the total capital investment. 

The North American electric power transmission system has been described as the largest, most complex machine ever built by humanity. It is a massive network of generating stations, transmission lines, substations, distribution lines, motors, and other electrical loads all interdependently linked for the conversion, transportation, and control of electrical energy. Approximately 60 percent of all energy utilized in the United States passes through the interconnected electric power system. The major goal of the system is to most efficiently and reliably deliver electric power from generating stations to residential, commercial, and industrial consumers. 

The steam electric power generation industry is defined as those establishments primarily engaged in the steam generation of electrical energy for distribution and sale. Those establishments produce electricity primarily from a process utilizing fossil-type fuel (coal, oil, or gas) or nuclear fuel in conjunction with a thermal cycle employing the steam-water system as the thermodynamic medium. The industry does not include steam electric power plants in industrial, commercial, or other facilities. The industry in the United States falls under two Standard Industrial Classification (SIC) Codes SIC 4911 and SIC 4931. 

The U.S. natural gas system includes 726 natural-gasprocessing plants 410 underground gas storage fields 254,000 miles of gas transmission lines and 980,000 miles of local distribution pipelines (NPC, 2001). Natural gas is used extensively in homes and buildings for heating, and it is an important feedstock for chemical plants, fertilizer production, and industrial processes. Finally, its most rapidly growing use is in the production of electrical power, where it has become the fuel of choice for the majority of new electric power generation plants. 

A future trend in the electricity supply industry, much discussed, is a move towards distributed (local) generation. This might be based on combined heat and power (CHP) schemes that would employ gas microturbines or gas engines, on solar energy (photovoltaic, solar—thermal) or on wind turbines. Most of the renewables are best utilized on a small-scale, local basis. Distributed generation is applicable in both semi-urban areas and in remote locations and may be the answer for many of those who currently are isolated from mains supplies. Sadly, often these people cannot afford such technology and their economic position is unlikely to improve until they do have access to electricity and fuels. 

The total cost of electricity sold in the United States in 1998 was 3.24 million gigawatt hours at a cost to consumers of 218.4 billion. The electricity generation plants use fossil fuel, nuclear, hydroelectric, cogeneration, geothermal, solar, and wind energies. The major players are fossil and nuclear steam supply systems. The two types of nuclear reactors are boiling water and pressurized water reactors. Some relevant data on the costs of corrosion estimated in 1998 are as follows nuclear facilities 1,546 billion fossil fuel sector 1,214 billion transmission and distribution 607 million hydraulic and other power 66 million. The total cost of corrosion in the electrical utilities industry in 1998 is estimated at 6,889 billion/year. 

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