Seizing Opportunities in Onsite Energy Production: A Business Case Perspective

In the contemporary energy landscape, the strategic exploration of onsite electrical and thermal production has become a crucial avenue for energy consumers seeking cost-effective and sustainable solutions. Traditionally, customers have relied on procuring electricity and natural gas from large utilities, but the paradigm is shifting. Cogeneration and onsite power generation, once niche applications, are gaining prominence. This shift has been fueled by heightened awareness of rising energy costs and environmental considerations.

Understanding the Shift

The shift from conventional utility ubiquity to onsite energy production will be a transformative journey. Europe has been a trailblazer in leveraging onsite power generation for decades, and now North America is experiencing a surge in adoption. Commercial and industrial consumers are capitalizing on this shift, driven by compelling economic, technical, and operational advantages that modern technology and implementation applications offer.

Economic Advantages

The economic landscape is witnessing a notable transformation with the increasing adoption of onsite energy production. The traditional approach of purchasing utility power and deploying electric or gas technology for heat production is being reconsidered due to a surge in operational costs. This is particularly evident in Alberta where average utility rates, including distribution and transmission charges, have recently reached $0.30/kWh average. As we face the inevitability of passed on grid-related costs to consumers, the appeal of onsite generation becomes evident, with an average blended generation cost of $0.10-$0.14/kWh, inclusive of maintenance and operating expenses.

Fuel Sensitivity and Technological Innovation

Businesses navigating the onsite energy production landscape need to address fuel sensitivity as a pivotal consideration. Recognizing the intrinsic link between electricity and natural gas prices is essential. The concept of fuel-agnostic supply, as seen in new cogeneration packages, provides consumers with flexibility. These packages can be engineered to utilize a range of fuels such as hydrogen, natural gas, and biogas, empowering businesses to optimize fuel sources according to their unique requirements.

Technological Advancements

The evolution of cogeneration packages is at the forefront of technological advancement, presenting new energy, opportunities. Microgeneration and medium-sized packages are achieving impressive heat rates that rival those of new large-scale plants. This technological progression is driven by the necessity to meet the demands of a new era marked by increased power demand, reliability concerns, and rising costs. Manufacturers are aligning with this trend by providing consumers with more efficient engines, including reciprocating and turbine technologies.

Prioritizing Serviceability

In the realm of onsite energy production, serviceability and operational excellence are paramount. While reliability is a priority, selecting a partner committed to servicing equipment locally is crucial for seamless operations. Point8 Power Systems stands out in this regard, offering service as a core value. The team at Point8 Power Systems has a proven track record of servicing numerous Combined Heat and Power (CHP) systems since the company's inception.

Partnering for Business Success

Bottom line, the energy landscape is ripe with opportunities for those capitalizing on the evolving onsite energy production trend. Point8 Power Systems stands as a faithful partner for businesses, offering expertise in designing, constructing, implementing and maintaining various technology offerings. Our expertise extends to reciprocating cogeneration, gas turbine, steam turbine, Battery Energy Storage Systems (BESS), and fuel cell systems. As businesses navigate the dynamic energy market, Point8 Power Systems remains committed to driving success through innovative and sustainable energy solutions.

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