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Client Textile Facility

Location Ontario, Canada

Sectors Manufacturing

The challenge

Class A Participant

ICI participants are charged a Global Adjustment based on an individual facility’s percentage contribution to province-wide peak demand during the top five peak demand-hours over a 12-month baseline. Class A facilities with demand exceeding 1 MW incur electricity costs primarily attributed to GA charges, accounting for 50 to 70% of their total monthly electric bill.

These high fees for peak power demand are designed to encourage businesses from excessive use of the grid during high demand. For some of these facilities with high-load profiles, curtailing production on the projected days with the five largest demand spikes of the year is not an option, such as at this textile plant. Their client base depends on timely delivery of product.

Project fact file

1.3 MW

Natural gas generators

90 %

Of NOx emissions elininated

Faster ROI

Compared to capital option

The solution    

Rental Power Generation

For the textile facility, Aggreko set up six of its 20’ x 8’ low footprint 1.3 MW natural gas generators fitted with NOx scrubbers to treat the exhaust gas, eliminating over 90% of NOx emissions. Well into its third year of operation, these mobile gas generators (total: 7.8 MW) eliminated the plant’s exposure to the grid’s five peak demand hours of the year, delivering a faster ROI compared to capital options.

From the very beginning, Aggreko engineers streamlined the interconnection process, which is unique to Ontario compared to the “standard” set of criteria and requirements (e.g., IEEE 1547) for interconnection of distributed generation resources seen with most North American power grids.

 

The Aggreko difference

Many jurisdictions are implementing high fees based on GA-related “mechanisms” for managing peak power demand on the grid.

The impact

Lower Energy Cost

This solution has resulted in net power cost savings for each of the first two years of operation, estimated at $0.062 per kwhr per kw of mitigation. Thus, the annual GA avoidance while switching to the 7.8 MW of mobile generation during Ontario’s top 5 demand peaks is $4.2 million (prior to rental, capital and operating costs). Smaller Class A facilities in the 500 kw to 1 MW range can also save thousands of dollars per month in annual GA avoidance by shifting load to clean-burning mobile power generation sources other than the utility grid.

 

"A rapid and precise solution was what the textile facility needed to eliminate 90% of NOx emissions, deliver a faster ROI and streamline the interconnection process." 

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