The
new economic model for electrical cogeneration that utilizes recovered and renewable resources |
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Frequently Asked Questions 1. What does RER do? RER sells electricity and thermal energy direct to industrial and large commercial customers through long-term power purchase agreements. The electricity and thermal energy is produced in small-scale combined heat and power generation plants. These plants are installed at or adjacent to the customer facilities or fuels generation point and supply all or a portion of the total electrical and thermal needs of the customer. 2. What are the advantages of an RER solution? RER brings stability to energy costs and delivery. RER also allows a customer to address waste disposal and environmental liability issues by transforming wastes to energy. 3. Aren’t electricity prices coming down? Despite some instances of spot price cuts or regional and seasonal price drops the average price for electricity has steadily climbed from <2¢/kWh in 1960 to >7¢/kWh in 2001. The price per kilowatt-hour will continue to rise as the costs for fuel and operating expenses rise. The price of natural gas has risen 13% in the past 3 years as it has become the fuel of choice for new power plant construction. Previously considered the cheap alternative to coal or oil, it now produces power at near the same rates as other fuels. 4. Are RER rate competitive with utility rates? Yes, RER can typically deliver electricity and thermal energy for less that the local utility. The first step in determining this is to contact RER for an analysis of your energy situation. 5. How can RER deliver electricity at competitive rates? RER utilizes fuels other power producers can not, and it avoids the costs of utilizing utility lines along with the associated transmission losses, it also delivers thermal energy to clients, generating a second revenue stream and offsetting plant generation costs 6. Is the cost for fuel included in the electricity? While all fuels have some processing or preparation costs, RER utilizes fuels with very low costs. These costs are included in the operations and maintenance figures used in the viability models. So yes, it is in the rate and allows RER to provide a stable power rate for its power purchase agreements 7. What is my upfront investment in an RER solution? There is no investment required in the RER plant. Modifications to a customer’s heating sytems to accept thermal energy from the plant, or changes to electrical systems downstream of the substation are the physical responsibilities. Operationally if the customer is directly providing the waste for fuel, it will be their responsibility for maintaining the necessary volumes. Otherwise it is simply promptly paying invoices for delivered electricity and energy. 8. How does RER differ from an energy services provider (ESP)? An ESP buys or produces power at the wholesale level and sells as the retail level and use the electrical grid to deliver that energy and are subject to their outages and disruptions. ESP’s often don’t provide thermal energy. RER delivers electrical energy directly from its own power plants adjacent to the customer, this avoiding the grid, and thermal energy is sent directly into the customer’s system. Similarities between RER and an ESP are delivering competitive rates and a monthly invoice. 9. What is the difference between RER and an energy services company (ESCO)? ESCOs typically just recommend methods and techniques for companies to obtain the power and energy necessary to run their facilities. This may include having the customer purchase, install and operate and maintain their own equipment. With RER the customer without the cost of ownership or operating risk realizes all the benefits of on-site distributed generation. 10. How quickly can I realize savings for an RER solution? The immediate savings from an RER plant are seen in the first monthly invoice. Additional savings from the elimination of waste disposal costs are often immediately realized. 11. Will I have to train my personnel to operate and maintain an RER solution? No, as RER owns the plant, it will staff it and perform all the maintenance. For customers purchasing the plants thermal energy there may be some training required, related to the energy coming from a new source and the customer’s equipment placed into a backup role. In some instances RER may offer to hire the customer’s employees responsible for utility systems. 12. What happens if the RER system needs service, will I be without power? RER power plants are designed to be highly reliable low maintenance plants. The plant is connected to parallel with the grid. If there is an unexpected outage the utility will pick up the difference, and the utility becomes the backup. There are two additional factors to consider. If the plants is comprised of multiple moduTRAINS it is highly unlikely that more than one modulTRAIN would be out of service at the same time. And finally, because of the modular design should a part of the system need major service, the entire module can be quickly swapped out rather than repaired in place. 13. How can I find out if my facility qualifies for an RER solution? Simple, the first step is to complete the inquiry form here on our website,
you can find it as the Inquiry page, RER will contact you to discuss further
your application. |
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