## Pentt i J . Aalt o PJ A Energ y System s Desig n 72 0 Bachelde

r Roa d Pembrok e N H 0327 5 603-485-255

9 pjaesd(a)comcast.ne

t 6/30/0 4 Departmen

t o f Environmenta

l Protectio n Burea u o f Wast e Preventio n On e Winter Stree t 8 t hfloo r Bosto n M A 0210 8 Attn : Rober

t Donaldso n RE : Respons

e to Ne w Rule s fo r

Distribute d Generation Dea r Mr . Donaldson : Than k yo u fo r th e opportunit

y t o commen

t o n th e proposed rule s fo r

distribute d generation . The purpos e o f these comment s i s t o amplif y an d expan d m y verba l comment

s i n Bosto n o n Jun

e 22 , 2004 . Th

e comment

s ar e base d o n ove r 3 0 year s o f experienc e i n th

e area s o f energ y conservation , distric t

energy , cogeneration an

d th e institutional an d regulator

y issue s relate d to them . I wa s afoundin g membe

r o f th e Ne w England Sola

r Energy Associatio n (no w th e Ne w England Sustainable Energ y Association) . I designe d aprojec t

tha t becam e th e Governors Commissio n o n Cogeneration . I a

mapast membe r o f th e Internationa

l Distric t Energy Associatio n wher e I wa s activ e i n th

e researc h committee . I hav

e bee n activel y involve d wit h cogeneration syste memission s an

d thei r contro l durin g thi s period . Iwil l discus s issue s relatin g t o th e proposed rule s fo r

distribute d generator

s (DG) , thei r

purpose , ris k

o f les s stringen t rules . Further , i n subsequen t commen t I wil l propos e i n mor

e detai l alternat

e market-based , regulator y syste mtha t I believ e wil l provid e bette r results ove

r time a t relativel y lo w administrativ e cost . Thes e comment

s represen

t my view s only . Purpose Distribute d generatio n ha s the potential t

o mak e dramatic improvement s i n bot h th e environmenta

l an d economi

c impacts o f

energ y production . The proble mi s tha t th e commerciall y viabl e D G technologie s tha t ar e availabl e toda

y hav e no t ha d th e focu s tha

t centra l statio n plant s hav

e had . Ne w centra

l plant s ar e ofte n cleane

r tha n today' s fue l burnin g D G technologies . I f we ar e to gai n th

e advantages o f

D G w e mus t establis h rule s tha

t allo w th e opportunit

y fo r existin g technologie s t o improv e whil e protectin g th e publi c health . The resource s necessar y fo r researc h an d developmen

t o f these improvement s wil l b e available i f

amarke t exists fo r them . Emissio n rule s ca n hel p or hinde r th e developmen

t o f thes e improvements . Rule s tha t ar e to o loos e provid e littl e incentive ; rule s tha t ar e to o stric t

wil l sto p developmen

t whe n alternative s ar

e available . I n thi s case, conventiona l centra l statio n powe

r i s usuall y available . Ris k Substantia

l rapi d developmen

t o f D G usin g existin g technolog y woul dincreas e emissions . Tw o area s wher e thi s might occu r ar e th e use o f existin g emergenc

y generator

s fo r non-emergenc

y economi

c uses , an d th e developmen

t o f ne w system s to replac e purchase

d power .Emergenc y generator

s ar e usuall y designed to operat e disconnected fro mth

e utilit y grid . Thi s allow s saf e operatio n o f th e generato

r whe n utilit y powe

r i s down . Th

e circuit s to b

e served b y th

e generato

r must first b e disconnecte

d fromthe utility' s wire s befor e th e generato

r ca n b e used . Thi s result s i n adisruptio n i n servic e tha t ca n b e aproble m fo r sensitiv e loads . Th

e generato

r must als o b e substantially large

r tha n the averag

e loa d to allo w startin g surges t o b e accommodated . Thi s result s i n operatio n a t inefficien t

reduced load . Th e high cost

o f operatio n i n thi s mod

e severel y limit s th

e economic valu e o f

operatio n a

s awa y to sav e money . Efficien t loadin g o f

th e generato

r ca n b e accomplished b y interconnectin g wit h th e utility . Thi s require s expensiv e protectiv e equipmen

t an d studie s tha

t agai n limi t

th e applicatio n t o system

s wher e particula

r situation s exist , suc

h a s transmissio n o

r distributio n congestion . Operatio n i n eithe r o f thes e non-emergenc

y modes i s economi

c onl y i n particularl y hig h cost

area s an d onl y fo r shor t times . I t i s unlikel y tha

t overal l emission s woul d seriousl y deteriorat

e an d migh t actually improv e i f

th e operatio n displace d olde r centra l plant s or

spinnin g reserves . Whil e these system s migh t operat e durin g ba

d ai r times , i t i s unlikel y tha

t the y woul dcaus

e significan t

deterioratio n becaus

e relativel y smal l amount

s o f powe r woul dreduce price s to non-economic levels . Ai r qualit y risk i s small . Large r effect s o n total emissio n tonnage coul d occu r i f larg e quantitie s o f

lo w cost fue l o r hig h efficienc y wer

e availabl e throug h cogeneration . O f these , cogeneration (o r

combine d hea

t an d powe r CHP ) i s th

e most likely . I n cogeneratiio n system

s wast e hea t fro mpowe

r productio n i s use

d to displac e fue l tha

t woul dotherwis e b

e use d t o produc e th

e heat . I n man

y Europea

n countries , thi s take s th

e for mo f larg e centra

l powe r plant s connecte

d t o distric t heatin g systems . Th

e wast e hea t fro mth e powe r plant s i s distribute d to heating customer s fo r industrial , domestic ho t water , spac

e hea t an d othe r uses . Thi s highly-efficien t syste mrequire s atherma

l distributio n system, usually ho t wate r o r steam . I n thi s country , w

e d o no t hav e extensive distric t

heating system

s an d mus t rel y o n othe

r methods to gai n th

e advantage s o f

cogeneration . W

e mus t sit e smalle r generator

s close r t o hea t loads an d ad d hea t recover y system s t o captur e th e normall y waste

d heat . Whil e evolvin g system s suc h a s fue l cell s an

d Stirlin g engine s ca

n b e applie d wit h hea t recovery , the

y ar e no t generally cost

effectiv e today . The highes t potentia l availabl e toda

y i s fro mhig h efficienc y reciprocatin g engine s an d ga s turbines . The marke

t fo r cogeneration system

s ha s bee n slo w to develo

p fo r anumbe r o f reasons , particularl y th

e hig h cost . Thi s ha s no t change d wit h the changes i n the electricit y markets . Eve

n i f ther e wer e n o additiona

l regulatio n th

e developmen

t o f these system

s woul dprobabl y continue t o b e slow . Whil e th

e risk i s smal l ther

e i s apotentia

l fo r growt h tha t require s regulatio n o f

emissions . W e shoul d recognize tha

t thos e system

s tha t operat e littl e hav

e littl e ai r qualit y effect . Regulation s should provid e adde d incentive s fo r

improvemen

t fo r equipmen

t tha t run s mor e an d shoul d continue to promot e improvemen

t i n existin g systems . Th e proposed rule s fai l t o provid e prope r incentive s to accomplis h these tasks . Iwil l provide further

detaile d discussio n o f

a n alternat e marke t base d method , whic h I believ e wil l provide th e prope r incentives .

### Pag e 1 o f 1 Donaldson , Rober t (DEP ) From : Thoma s Hylan d [thomashyland@clarityconnect.com ] Sent : Wednesday , Jun e 30 , 200 4 3:5 1 P M To : Donaldson , Rober t (DEP ) Subject : D G regulations: comment s o f Pentt i J . Aalt o 6/30/0 4 Dea r Mr . Donaldson : Thi s i s aresponse t o th

e proposed distribute d generation rules . I wil l submi t furthe r discussion on a

n alternat e syste mo f regulatio n tha

t ma y provide bette

r results . Than k you . Pentt i J . Aalt o



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