In addition to potentially reducing criteria pollutant emissions, greenhouse gas emissions, and petroleum use from motor vehicles, fuel cell vehicles (FCVs) could also act as distributed electricity generating resources when parked at homes, offices, and shopping malls. FCVs could help to meet local power needs, reducing demand for grid power along with transmission and distribution losses, as well as supplying power to the grid during times of peak demand. Moreover, FCVs could potentially offer ancillary services such as emergency back-up power, spinning reserves, and power quality support. In principle, use of FCVs in this way could both reduce the need to construct new stationary “peak power” plants to supply peak electricity demands, as well as helping to pay down the costs of FCV ownership. This analysis uses an integrated Excel/MATLAB/Simulink model named CETEEM that we have developed to examine the economics of stationary fuel cell and FCV-based power from a customer perspective. For purposes of this analysis, we assume that FCVs are fueled by off-board natural gas reformers when in distributed power mode, and we analyze the economics of FCV-based power in comparison with the alternatives of purchasing power from the grid and installing stationary fuel cell systems. The analysis examines the economic implications of an expanded net metering scheme in California, that allows fuel cell systems to be net metered in addition to the solar PV and wind power systems that currently can be net-metered under California law. The analysis focuses on two settings: a large, single-family California residence and a medium-sized California office building. The analysis shows that the economics of both stationary fuel cell and FCV-based power vary significantly with variations in key input variables such as the price of natural gas, electricity prices, fuel cell and reformer system costs, and fuel cell system durability levels. In general, the “central case” analysis results show that stationary PEM fuel cell systems can supply electricity for offices and homes in California at a net savings when fuel cell system costs reach about $6,000 for a 5 kW home system ($1,200/kW) and $175,000 for a 250 kW commercial system ($700/kW) and assuming somewhat favorable natural gas costs of $6/MMBTU at residences and $4/MMBTU at commercial buildings. Grid-connected FCVs in commercial settings can also potentially supply electricity at competitive rates, in some cases producing significant annual benefits. Particularly attractive is the combination of net metering along with time-of-use electricity rates that allow power to be supplied to the utility grid at the avoided cost of central power plant generation. FCV-based power at individual residences does not appear to be as attractive, at least where FCV power can only be used directly or banked with the utility for net metering and not sold in greater quantity, due to the low load levels at these locations that provide a poor match to automotive fuel cell operation, higher natural gas prices than are available at commercial settings, and other factors.

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