Assessment of the fuel cell's role in small utilities. Final report

Abstract

Fuel cell power plants are expected to have a number of unique features of potential benefit to small electric utility systems including efficient operation, availability in small unit sizes, high reliability, a flat heat rate curve, minimal environmental impact, and a dispersed siting capability. This study assessed the role of fuel cells in small municipal and rural electric utility systems, identified the fuel cell characteristics most important to ensuring its successful penetration of the small utility market, and quantified the value to small utilities of key fuel cell characteristics. The study involved five technical tasks including: (1) analysis of small utility characteristics; (2) selection of six reference systems and expansion from 1980 to 2000 with conventional generation; (3) expansion of the six reference systems with five fuel cell types and comparison with conventional expansions; (4) determination of threshold values for key fuel cell characteristics; and (5) quantification of the potential benefits associated with certain of the fuel cell's unique features. The fuel cell types evaluated in this study included a 5-MW first generation fuel cell operating on naphtha and 1-MW, 5-MW, 10-MW, and 25-MW advanced fuel cells using No. 2. oil. The results of the study show that the fuelmore » cell has the potential for significant penetration into the small utility market, competing with conventional generation from the base load to the intermediate and peaking ranges of operation, especially if the characteristics specified for the advanced fuel cells can be achieved. Typical break-even capital/costs ranged between $250 and $400/kW for the various scenarios. The major potential limitations on the utilization of these fuel cell types are oil availability and price. If future oil prices are much higher relative to other fuels than at present, fuel cell penetration may be restricted to peaking and intermediate range operation.« less