As the US economy expands, so does the need for a constant supply of energy to support it. Predictions made by the International Energy Agency (IEA) in its 2011 report sees an upward trend in energy demand due to population and world GDP growth.
Electricity rates from the grid are predicted to climb as well due to updated emission standards. Coal and natural gas updated regulations.
In turn, the power plants will pass this cost on to its customers. With 60% of California’s energy coming from natural gas power plants, electric rates are sure to rise. Recall in 2008, President Obama uttered these words that became the talk of the media: “Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket.”
According to a study done by UC Davis Energy Efficiency Center in 2013, they found that “...electricity prices [in California] will continue to increase at rates that will make investments in energy efficiency and renewable energy wise decisions with strong returns for retail consumers.” Although natural gas power plants are suffering a hit, it does not mean that natural gas itself is bad.
Due to the advent of hydraulic fracturing, natural gas supply has increased since 2009, causing a significant drop in its price seen in the same UC Davis study.
Natural gas can be used to supply clean energy through small scale cogeneration technology, also known at combined heat and power. Highly endorsed by the EPA, it is an on-site energy generation process that makes electricity and creates free waste heat to capture.This system is perfect for facilities like hotels, hospitals, and senior care homes.
At this point, it is a smarter move for businesses to invest in their own electricity generator instead of depending on the grid. Even though natural gas power plants’ future is facing upward price pressures, the prospect of natural gas itself being used to support a clean energy future is bright. Business owners have an incentive to investigate and innovate when it comes to energy. In the end, businesses want to grow their NOI as high as possible.Have the electric rates been high enough to react with changed policies/ actions?
What steps are you taking to reduce energy usage?
What is the length of time you are looking for energy reduction paybacks?Check out WinWerk’s cogeneration technology from Tecogen.
See if your facility is compatible with this technology.