Linda Nazar: Energy Materials & Climate Change

AEP Increases Natural Gas-Fired Generation Capacity

Following is another news release indicating increased use of natural gas.  As explained previously, natural gas is not a renewable energy source; however, because it produces the least greenhouse gases (GHGs) of the fossil fuels, it is worth paying attention to.  This news release is from an electric utility, American Electric Power.

AEP Increases Natural Gas-Fired Generation Capacity As Newly Constructed Dresden Plant Goes On Line

COLUMBUS, Ohio, Feb. 1, 2012 – American Electric Power (NYSE: AEP) has begun commercial operation of the Dresden natural gas-fired power plant, a nominal 580-megawatt combined-cycle generating unit. The plant, located near Dresden, Ohio, provides 25 permanent jobs and employed more than 800 workers at the peak of construction.

With the start-up of the Dresden plant, AEP has added more than 4,800 megawatts of natural gas-fired capacity to its generating fleet in the past decade. Natural gas accounts for 24 percent of AEP’s total generating capacity.

 “This is another step in the transformation of AEP’s generating fleet as we continue to diversify our fuel mix to improve our environmental footprint and provide economical electricity for our customers,” said Nicholas K. Akins, AEP’s president and chief executive officer. “Natural gas will become an increasing part of AEP’s generating portfolio in the coming decades as a result of the development of shale gas reserves and new environmental regulations, but we continue to believe our company and our nation need a diverse electricity generating portfolio that also includes investment in cleaner coal technologies, nuclear and renewable power.”

AEP purchased the partially constructed Dresden plant in 2007 for approximately $85 million from Dresden Energy LLC, a subsidiary of Dominion. AEP accelerated construction of Dresden in January 2011. Total costs for the plant were approximately $366 million.

The Dresden plant will supply electricity to AEP’s Appalachian Power customers in West Virginia, Virginia and Tennessee.

Building Storehouses for the Sun's Energy, for Use After Dark

The following was gleaned from a January 3 New York Times article with the above title.

Building Storehouses for the Sun’s Energy, for Use After Dark

The solar power industry must overcome a major stumbling block: finding a way to store it for use when the sun isn’t shining.

Solar thermal power makes electricity by using the sun’s heat to boil water. The water can be used to heat salt that stores the energy until later, when the sun is no longer shining.

The U.S. Energy Department recently gave a $737 million loan guarantee to a solar thermal company for a plant that will generate 110 megawatts at peak and store enough heat to run for eight to 10 hours when the sun is not shining.

One advantage of adding storage capacity has to do with the equipment that makes electricity being the most expensive part of a solar thermal system.  If it is connected to storage technology, it can run almost twice as many hours as a plant without storage. That means the unit cost of electricity drops.

Another has to do with the arcane economics of electricity. A utility must assure a supply of electricity in two forms: energy and capacity. The difference has never meant much to most consumers, who directly pay only for energy, as measured in kilowatt-hours.

But capacity, the dependable ability to produce power, is becoming more important as renewable energy forms a larger and larger part of the grid.

Wind and sun provide a lot of energy but not much capacity. Today, backup capacity for wind and solar power comes in the form of expensive gas-fired generators, which sit idle most of the year but operate when the wind stops blowing or the sun stops shining.

Storage could cut costs by 4 cents a kilowatt-hour, Mr. Denholm calculates — a considerable benefit for a commodity that retails for an average of 11 cents. A big part of the savings is not having to build the gas-fired generators for backup.