96/05100 Prime movers reduce energy costs

Abstract

Many industrial plants have found that reciprocating engines used to power generator sets and chiller systems are effective in reducing energy costs as part of a load management strategy, while meeting other plant energy needs. As the trend towards high electric utility costs continues, familiarity with basic analyses used to determine the economic viability of engine-driven systems is essential. A basic method to determine the economic viability of genset or chiller systems is to review the supplying utility`s rate structure, determine approximate costs to install and operate an engine-driven system, and calculate a simple equipment payback period. If the initial analysis shows that significant savings are possible and a quick payback is likely, a thorough analysis should be conducted to analyze a plant`s actual electric load profile. A load profile analysis takes into consideration average loads, peak loads, and peak duration. A detailed study should cover myriad considerations, including local air quality regulations and permitting, space availability, auxiliary system components, and financing options. A basic analysis takes relatively little time and can rule out the need for a detailed study.