The defining characteristics of BTM applications include:
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The generating unit is located with the load. |
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No utility-owned transmission or distribution facilities are used to deliver the energy from the generating unit to the load, unless under mutual agreement. |
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The generation interconnection is located behind a retail customer meter. |
BTM installations improve fuel diversity, promote energy independence, displace purchased retail energy (including peak energy capacity charges), generate good will with customers and visibly demonstrate a commitment to environmental conservation.
The principal drivers behind an organization’s decision to develop on-site wind generation often include:
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Environmental stewardship Generating clean wind energy on-site is an effective and visible way of demonstrating commitment to a more sustainable environment. |
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Hedge against financial risks On-site wind energy generation can reduce facility energy costs by displacing purchased retail energy, minimizing peak energy capacity charges, and reducing reliance on fossil fuels with volatile pricing. This allows better planning and more predictable energy expenditures. |
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Lowered green house gas (GHG) emissions and other pollutantsSubstituting clean, renewable energy for fossil fuel-based energy can substantially reduce the emissions of GHGs and other pollutants that result from company-wide activities. |
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Economic benefits through job creation and market developmentInvesting in on-site renewable energy generation creates jobs and helps to stimulate local, state, and regional economies. |
In many states, on-site wind generation offers “net metering”–an approach that feeds excess energy back into the grid, making a project more economically viable.
Net metering enables customers to use their own energy generation to offset their consumption over a billing period. With their electric meters spinning backwards, customers can receive retail prices for the excess electricity they generate.
When available, net metering can provide an on-site generator with more flexibility to meet the on-site electricity demand when sizing the wind project. Because wind is a variable resource, the need for energy may not align exactly with its availability. As a result, net metering may allow the wind project to be sized to cover a greater amount of the load.
Net metering is an easily administered method of encouraging customer investment in renewable energy technologies. It enables customers to "bank" their renewable energy, increasing flexibility and maximizing production value. Providers benefit from net metering because the system load factor is improved, particularly during peak periods.
Currently, net metering is offered in more than 35 states (see summary table to the right). For more information on this and other state and federal renewable energy incentives for wind energy developers, see the Database of State Incentives for Renewables and Efficiency at www.dsireusa.org.
Without net metering, the on-site project can simply be sized appropriately, with all electricity generated consumed by the load in real-time. An alternative involves installing a second meter to measure the electricity flow back to the provider, who purchases the excess power at a negotiated rate, typically lower than retail.
Although many wind turbine manufacturers focus exclusively on large-scale projects, Nordic Windpower looks forward to helping smaller developers adopt clean and cost-effective wind energy easily and rapidly.
