Future power delivery trends

Traditionally, electrical and thermal energy users purchased all required electrical energy from local electric power utility companies and fuel for heating from regulated distribution companies, brokers, or fuel suppliers. Today, some large end users, such as owners and operators of industrial plants, universities, hotels, government buildings, offices, apartment buildings, and hospitals, developed alternatives to these conventional purchases and now secure their power and energy requirements from onsite generation and heat recovery systems. This independent power production has several advantages which include: higher energy conversion efficiency resulting in lower energy cost; isolation from utility rate increases; and environmental benefits. Independent power production was made possible as a result of recent government actions which resulted in the utility industry deregulation and effective restructuring. Manufacturers of power generating equipment responded and, with the help of government research, are now producing cost effective and highly efficient generating plants in ratings as low as 1 MW and below. This development could encourage even smaller end users to generate their own electrical and thermal energy requirements. For example, traction power substation demand of AC and DC electrification systems falls into the rating range where independent energy generation by the system owner might be economical. This paper reviews the status of the electric power industry and discusses future possible means of power supply to end users.