Decentralised electricity production is currently a hot topic. Several large energy consumers, such as industry, horticultural firms and hospitals, have been generating their own electricity for some time now. These producers have their own power units which generate electricity by burning natural gas. This is precisely the same process as that used by the large power stations, yet with almost none of the disadvantages. This is because the heat released during the combustion process can be usefully used for heating and hot water whereas the heat produced by power stations is simply released into the atmosphere. There are also no transport losses, since all the electricity is consumed on-site. This leads to cost savings. Another benefit is that less natural gas needs to be burned to generate the electricity required. This reduces CO2 output and makes a substantial saving on fossil fuels.

Decentralised electricity production which involves the efficient consumption of residual heat is known as combined heat and power (CHP). Mini-CHP units are used in apartment blocks, utility buildings and flat complexes. Micro-CHP units will probably be launched on the market in the not too distant future. In addition to producing electricity, these ‘home power plants’ also generate heat for ambient heating and hot water. This means that the unit can also be used to replace the high-efficiency boiler.

Between 350,000 and 450,000 central heating boilers are installed in the Netherlands each year. If all of these were home power plants, then their combined electricity output could almost equal that of a power station. The large-scale, remote management of home power plants (and other decentralised electricity generating systems) could help to reduce the need for fossil fuels and other sources of energy. These individual home power plants will not only respond to domestic heat and electricity requirements as they arise, but they can also be started up by an energy company to supply electricity to the national grid. If it is not needed straightaway, the heat released during this process can then be stored in a boiler until it is required.

A network of thousands of interlinked home power units is called a ‘Virtual Power Plant’. Virtual power plants can also incorporate renewable energy sources such as wind and solar power.

Alliander, ECN, Stedin, Enexis, Gasunie Engineering & Technology, GasTerra, ICT Automatisering, Kema, N.V. NOM, TietoEnator and TNO ICT are working together to realise the ‘Virtual Power Plant’ concept as part of the Energy Valley initiative. This development programme, entitled ‘Smart Power System’ (SPS), is being implemented under the chairmanship of Ed van de Beek, executive vice president of N.V. NOM, Groningen.