Mesa, Ariz., uses grants to investigate distributed, renewable energy
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The City of Mesa Utilities receives some of its power from this 200-kW, PC 25 C model phosphoric acid fuel cell. The city used a Department of Defense grant to fund the installation. (photo courtesy of City of Mesa)
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Figuring out how to fit distributed and renewable energy technologies into a utility's generation portfolio can be puzzling, not to mention expensive, unless the utility takes a lesson from the City of Mesa (Ariz.) Utilities and seeks out grants to fund demonstration projects.
The gas, water and electric municipal utility recently applied for a grant from the Department of Defense to install a residential sized 5-kW proton exchange membrane fuel cell at the local Arizona National Guard armory. The project is the latest in a line of hands-on demonstrations that has helped Mesa learn about alternative generation systems and what part they may play in the utility's future.
As Gas Division Director Gerald Paulus sees it, getting to know about different power sources is not a choice for Mesa. "Every utility needs to understand these technologies to offer its customers a full range of energy solutions," he asserted. "If we ignore an option because it doesn't fit with the familiar model of centralized power, we could be missing a chance to shape the future."
Rebate program funds first fuel cell installation
Experience doesn't come cheap, however. "It's the chicken-and-egg story. Systems are expensive because there isn't a demand for them, and there isn't a demand for them because they are expensive," noted Paulus. "Incentives and grants make the units cost-effective, which increases the demand for the technology and eventually brings down the price."
Funding from the DOD's Climate Change Fuel Cell rebate program first put the technology within Mesa's reach in 1997 when the city built a new facility to house the Utilities department. "We had been following fuel cell development since the 1980s and were waiting for the right project to showcase the technology," Paulus recalled.
Paulus contacted a fuel cell manufacturer, and the company told him about the rebate. The city applied for the incentive and received $1,000 per kW on a 200-kW, PC 25 C model phosphoric acid unit. "The fact that it was a new building made it easy to integrate the technology, but the grant made it truly cost-effective," he admitted.
By adding a thermal chiller to cool the building with heat and electricity recovered from the fuel cell, the operating cost of the system is approximately $.07 per kWh. "That's more than wholesale, but less than retail," Paulus said. "It also reduces CO2 emissions by 1,300 tons per year."
Partnerships foot bill for more hands-on learning
Not long after the dedication of the new system, the Arizona National Guard approached Mesa with an opportunity to build on its initial fuel cell experience—at no expense to the utility. The Western Army National Guard Aviation Training Site in Marana, Ariz., wanted to replace the expensive and unreliable radial feed power supply to its flight simulator with fuel cells, and they wanted Mesa to install the system.
The project was less a demonstration than a necessity, Paulus observed, because the radial feed was prone to frequent interruptions. The old flight simulator computer could take up to six hours to reboot and pilots who had come from around the world to train would lose their place in line. "They needed a primary power source they could count on," he said. "The fuel cell was a good match of technology to purpose."
Mesa procured two used 200-kW units from a military base and a research facility, both donated for the cost of shipping the fuel cells. The system incorporated sub-cycle switching to detect interruptions in electric service and provide for seamless switches from the fuel cell to conventional power without causing the computer to crash.
Paulus believes that Mesa's collaboration with the Arizona National Guard may provide a clue to utility's role in supplying power if generation becomes increasingly decentralized. "We can become a resource, a commodity to our customers, by designing, installing and maintaining systems," he insisted.
That relationship seems to suit the National Guard, which contracted with Mesa recently to build a $70,000 wind turbine at Camp Navajo Army Depot. A joint project with Arizona Public Service to construct a 7-MW biogas generator at a shared wastewater treatment plant will give the utility still more valuable experience with alternative energy sources.
"The technology is moving forward whether utilities get involved or not," said Paulus. "We've found that if you are willing to do the legwork, the funding issue doesn't have to hold you back."
Maybe experience is cheap after all.