EMISSIONS BENEFITS OF DISTRIBUTED GENERATION IN THE TEXAS MARKET

One potential benefit of distributed generation (DG) is a net reduction in air emissions. While DG will produce emissions, most notably carbon dioxide and nitrogen oxides, the power it displaces might have produced more. This study used a system dispatch model developed at Oak Ridge National Laboratory to simulate the 2012 Texas power market with and without DG. This study compares the reduction in system emissions to the emissions from the DG to determine the net savings. Some of the major findings are that 85% of the electricity displaced by DG during peak hours will be simple cycle natural gas, either steam or combustion turbine. Even with DG running as baseload, 57% of electricity displaced will be simple cycle natural gas. Despite the retirement of some gas-fired steam units and the construction of many new gas turbine and combined cycle units, the marginal emissions from the system remain quite high (1.4 lb NO{sub x}/MWh on peak and 1.1 lb NO{sub x}/MWh baseload) compared to projected DG emissions. Consequently, additions of DG capacity will reduce emissions in Texas from power generation in 2012. Using the DG exhaust heat for combined heat and power provides an even greater benefit, since it eliminates further boiler emissions while adding none over what would be produced while generating electricity. Further studies are warranted concerning the robustness of the result with changes in fuel prices, demands, and mixes of power generating technology.