FuelCell Energy Inc (FCEL)

[Jack_Bolander]

I DID THE MATH, and in this case 2+2= 0.

And here’s why…

As the author points out, power grid frequency fluctuations are mainly caused by changes in renewable generation (a change in wind-speed, a solar eclipse, etc.) or from power trading, and that these phenomena usually occur within a 15 minute span, and can last for hours. In order to balance this fluctuation quick-start generation is required (under 15 minutes for full power), such as large battery arrays or Power Site gas-fired peakers.

Fuel cells, and especially high-temperature carbonate fuel cells systems cannot be dispatched quickly enough to remedy frequency fluctuations on a grid, so high-temp carbonate fuel cells are not a viable solution (they can take hours). And I add viable, because on a per kilowatt basis Fuel Cells are 4 times more expensive than a Power Site unit, for instance.

So fuel cells might work with micro-grids in the future, if they can become economic, but in the meantime as the author points out:

“That finding suggests better ways of managing frequency fluctuations will be needed before a distributed grid composed of many microgrids can become a reality. “

Batteries and quick-start gas fired peakers are the answer for now.