Conventional Generation | Peak Demand | Renewables & UPS

Conventionally, it has not been practical to store electricity. Unlike oil, natural gas, and water, electricity must be consumed as it is generated. As a result, electricity supply has long been subject to great fluctuations in reliability, availability, and price. Moreover, the world's electricity infrastructure has grown increasingly complex, combining large-scale, steady-state, "base-load" power stations with expensive peak-load generators to handle surges in demand.

Modern base-load generation can be more efficient (up to 60 percent for combined-cycle generation and up to 80 percent for combined heat and power generation) than distributed peak-load generation. This reality will increasingly challenge generator and transmission network operators to balance efficiency with reliability during periods of peak demand. Unfortunately, the need to meet surges in demand has increased our reliance on distributed rather than expensive, emissions-producing “peakers."

In addition, the growing physical separation of base-load generation from peak demand and increased reliance on peak-load generation often creates situations in which a net decrease in overall generating efficiency is likely. To maintain adequate spinning reserves, more and more “islands of power” must be constructed using inefficient but fast-responding peak generators to ensure enough capacity.