In the late 1970’s, due to increasing electric energy costs and the potential for power interruption at Solar Turbines Incorporated’s Harbor Drive manufacturing facility, management evaluated several self-generating options available at the time. With large fluctuating loads and a very limited need for thermal energy, the appropriate solution was determined to be peak shaving.
In 1980, a 2.5-MW dual fuel industrial gas turbine generator set was installed. Its intended operating cycle was during on-peak billing periods, 5 days a week throughout the year. Through August 31, 1993, the system has accumulated 22,743 hours of use and 3879 starts. Its overall start reliability has been 99.9% with an availability of 98.2%. Payback on the installation was in 4.2 years. It has continued to generate savings since installation, with net savings for 1992 alone exceeding $470,000.
This paper highlights the key aspects of the economic methodology justifying installation of the peak shaving system, operating procedures, maintenance practices and system modifications put in place over the life of the installation.