Energy IQ : Three common use cases and deployments of distributed energy resources

""

Distributed energy resources (DERs) are electricity-producing resources connected to the local electric distribution system. As the deployment of DERs continues growing worldwide, three common use cases of DERs are being employed globally.

Effectively in all three use cases, distributed generation introduces our electricity infrastructure and interconnected ecosystem of smaller power generation systems at or close to the point of consumption. The result of this proximity to consumption allows distributed generation systems to reduce the cost, complexity and inefficiency associated with transmission and distribution. For electricity customers, their emerging needs around sustainability and economics are also making distributed generation an important component of electricity infrastructure. In terms of sustainability, distributed generation offers the benefit of reduced emissions through integration of renewable sources with existing energy assets.

Below are three common distributed generation use cases with summarized benefits of each use case for electricity customers and energy market participants. 

Use Case No. 1: Grid Firming

Grid firming is a front-of-the-meter application where the utility meter is located between the customer load and distributed energy resources (DER).

power market today in story image

Direct energy market participants leverage grid firming to monetize their on-site power assets, including gas and diesel fueled generator sets. Energy market participants decide whether to utilize these on-site power assets by monitoring electricity demand and price in wholesale markets. For customers, grid firming provides the lowest levelized cost of electricity (LCOE) to support an inadequate grid.

Read about the role of Cummins-powered generator sets in efforts to add more renewable energy to the UK grid  

Use case No. 2: Energy Management

Energy management is a behind-the-meter application where both the customer load and DERs are on the same side of, behind, the meter.

Energy management, like grid firming, offers the opportunity to monetize on-site power assets but extends this opportunity to electricity customers in addition to direct energy market participants. Customers of energy management applications can mitigate time of use charges and experience the monetization in the form of bill savings. Some customers also enjoy the self-sufficiency offered by energy management applications.

Use case No. 3: Off-Grid

Let’s focus on two benefits of off-grid use case. First, it enables the electricity customers to operate in areas where there is weak or no grid. In this case customers benefit from consistent, reliable electricity at lower operating cost. Second, customers seeking to add renewables deploy this use to build a hybrid system consisting of renewables and diesel or gas fueled generators. In this case, the key benefits for the customers are sustainability and in some cases avoidance of high electricity prices offered by the utility.

In this use case, a customer could be self-metering the electricity usage or sign a power purchase agreement with the electricity producer. 

Read how Hawaii's largest craft brewery pursues grid independence for sustainability and to build a competitive edge

These three distributed generation use cases; grid firming, energy management and off-grid, all aim to fulfill the market’s increased expectations around reliability, sustainability and economics when it comes to purchasing electricity.

Aytek Yuksel - Cummins Inc

Aytek Yuksel

Aytek Yuksel is the Content Marketing Leader for Cummins Inc., with a focus on Power Systems markets. Aytek joined the Company in 2008. Since then, he has worked in several marketing roles and now brings you the learnings from our key markets ranging from industrial to residential markets. Aytek lives in Minneapolis, Minnesota with his wife and two kids.

Cummins Custompaks are being used for water management as Thailand struggles with its water crisis

CustomPak on site

Water crisis

Sixty Cummins Inc. CustomPaks are in service in Thailand as part of a critical water management plan aimed at easing the country’s water crisis – a crisis that has caused enormous economic and social damage and stirred conflict among communities.

Over the past several decades, Thailand has continually faced water problems caused by severe drought. Water reserves in dams and reservoirs are insufficient while water resources are often contaminated with toxins caused by urban communities and the industrial and agricultural sectors.

Severe flooding is a threat, too, at a time when the realities of climate change are hanging over the country.

As a result, the allocation of precious water resources, which must be shared among various stakeholders including new and existing industry, large and small agriculture, and cities and villages has become a flashpoint.

Kittithanapat Engineering Co. (KTP), has been involved in the water management system since 1996, working closely with authorities such as the Royal Irrigation Department, Department of Water Resources, Bangkok Metropolitan Authority and others.

CustomPaks on site

600 hp CustomPaks

To help KTP meet its often urgent requirements, Cummins DKSH (Thailand) has recently supplied 60 Australian-built CustomPaks – 45 powered by Cummins’ X15 engine rated at 600 hp, and 15 powered by the QSL9 rated at 325 hp. These fully self-contained powerpacks are emissions certified to Tier 3.

The CustomPaks are coupled to hydraulically-driven, large-volume submersible water pumps sourced by KTP from US company Moving Water Industries (MWI); KTP is the exclusive distributor in Thailand for these MWI Hydroflo pumps.

Prior to Cummins’ involvement, KTP was using another diesel engine brand but service support wasn’t up to the standard required.

Long-serving KTP engineer Kittisak Thanasoot says Cummins DKSH’s reputation for technical and aftersales support along with the reliability of the Cummins product were a key reason behind KTP’s decision to specify the CustomPaks for the Royal Irrigation Department.

The ability of Cummins DKSH to respond to short delivery times was also important.

“Supplying large quantities of high horsepower diesel engines for emergency situations such as flash flooding can be a challenge for KTP,” says Kittisak Thanasoot.

“Responding to the needs of the government agencies to manage such problems in a timely manner and with least impact on communities, KTP has found the answer in our partnership with Cummins DKSH.”

Power, pride and passion

Parked semi truck

The switch back to Cummins power has been beneficial for iconic New Zealand company Uhlenberg Haulage. It's all about whole-of-life costs.

Uhlenberg Haulage is closing in on 60 years in business, having been founded in 1966 by Mike and Carol Uhlenberg.

Based in Eltham, Taranaki, in New Zealand’s North Island, the operation is today owned and operated by their sons Chris, Daryl and Tony Uhlenberg.

Describing the Uhlenbergs as “old school family truckies”, Daryl talks about the company’s time-honored journey with a definite tone of pride, especially the work of his parents in laying the foundations for what is today an iconic fleet in its own right.

Cummins Inc. made its debut in the Uhlenberg fleet in 1971 with an NH250 powering a second-hand Kenworth K923 used in logging. A second Kenworth, a new W924 with a Cummins NTC335, followed soon after hauling an LPG tanker.

The Uhlenberg operation today comprises 40 prime movers and a variety of trailing gear to cater for the myriad of a jobs the fleet is involved in.

A number of Peterbilts feature in the fleet although Kenworth is now the brand of choice with six new units to be delivered over the next 12 months to cater for business growth.

Cummins’ X15 Euro 5 engine rated at 550 or 600 hp is the preferred power specification, with 18 red engines currently in the fleet.

Uhlenberg family in front of truck

Whole-of-life support

“The switch to Cummins has been a very good experience for us. We have nothing but praise for the Cummins organization,” says Daryl.

“The whole-of-life picture is the key thing for us and we’ve got that nailed with the support we get from Cummins – parts availability, scheduled maintenance, life expectancy and in-frame rebuilds.

“So the red engines turn up, we run them to life, which is 900,000 to 1.2 million kilometers, and then Cummins does an in-frame overhaul in a timely manner. If there’s an issue, parts and support are close by.

“The support we get from Cummins Palmerston North is fantastic, second to none.”

Daryl recently looked under a Kenworth that was in the workshop for a service and was surprised to see no oil leaking from the one-million-kilometer X15. “I remember when I was a fitter we had to wear a raincoat when working under a truck,” he jokes.

Fuel agnostic

Acknowledging that the push to decarbonize is now “very real”, Daryl likes the idea of Cummins’ fuel agnostic concept where one base internal combustion engine, optimized to run on diesel, can also be customized to run on ultra-low and zero-carbon fuels like renewable natural gas and hydrogen.

“My father was a pioneer of linehaul trucking in New Zealand and he always embraced new technology. He was never scared of it,” he says.

“I tend to be a little more cautious but I can see where a 500 hp natural gas or hydrogen engine would work for us in short haul applications,” he admits. “We’re certainly willing to look closely at these alternative fuel technologies when suitable infrastructure is in place.”

Redirecting to
cummins.com

The information you are looking for is on
cummins.com

We are launching that site for you now.

Thank you.