Proprietary power plants at industrial enterprises: factors and aspects of development

Constructing proprietary electrical power generating plants is one of the more significant, though costly, ways for industrial enterprises to improve energy efficiency. Such a solution is becoming increasingly popular and much-in-demand over the last few years. Several factors formed favorable environment for the dynamic development of proprietary power plants: high inflation rate, purchasing energy from the power grid is increasingly costly, and credit resources and natural gas become more accessible.

As technology and equipment become more efficient and less expensive, more industrial enterprises choose to resort to proprietary power solutions. Independent studies and quotations offered by equipment producers prove the commercial viability of proprietary power stations. Allowing the use of alternative fuels like associated gas, MSW, etc., a proprietary power source can be extra beneficial for the economy and the environment.

One can consider such power generation solutions as self-balanced systems: they include an electrical power generating plant, electrical grid infrastructure, energy stor- age, and consumption control systems. Large industrial enterprises are limited in implementing a proprietary power generation solution by a regulatory requirement regarding the power capacity. In case a power plant is equal to or exceeds 25MW in output capacity, enterprises must trade all of their energy at the electric power wholesale market. The requirement also forces them to purchase this very energy for their own needs at a market price.

Author: V.V. Dzyubenko

Section: Review

Keywords: power generation, proprietary power generation, energy efficiency