Potential applications of dispersed fuel cell power plants on electric utility systems

This paper reports on a study whose objectives were to foster a better understanding of fuel cell power plants (FCPP) by electric utilities, to provide a forum for a two-way information exchange between EPRI and utilities on the special credits applicable to FCPPs, and to gain information on the potential application of FCPPs on electric utility systems in terms of economic viability, capacity need, and operating mode. The phosphoric acid FCPP, as exemplified by the DOE-sponsored 4.5-MW demonstration project on the Consolidated Edison system in Manhattan, is examined. The EPRI obtained the participation of 25 utilities in a utility-specific generation expansion study. The results show that the potential application of FCPPs is highly dependent on its total capital requirement (TCR) and any credits a utility might determine as applicable. It is determined that the utility characteristic favorable to FCPP application include the absence of a predominant amount of oil- or gas-fired generation capacity, the absence of abundant potential of new and inexpensive peaking capacity, and a small annual increment of new capacity requirement.