Canada's Northland Power Continues to Expand Portfolio of Clean, Reliable Gas-Fired Energy in Illinois

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Researched by Industrial Info Resources (Sugar Land, Texas)--Northland Power Incorporated (TSX:NPI) (Toronto, Ontario) plans to develop and construct two gas-fired peaking stations in Boone County, Illinois. The peaking facilities will be located near the village of Annawan, Illinois, in Henry County. When completed, each station will have a total power-generating capacity of about 100 megawatts (MW). The total estimated value of these investments is about $220 million.

The rights for this development were acquired from Burns & McDonnell (Kansas City, Missouri), which is presently working with Northland to secure agreements with various parties that are interested in purchasing power.

As of now, the technology for each proposed project will consist of about six to 13 natural gas-fired, internal combustion reciprocating engine generator sets. The purpose of these peaking power stations is to support a dependable, integrated energy mix. They are intended to operate on an as-needed basis during high-demand conditions. Peak hours typically take place in the afternoon, especially during the summer months, when the air conditioning load is high and businesses are still open and using power. Peak hours also can be in the evening, when appliances are heavily used by residents.

The stations have many benefits; they support system reliability by being able to respond quickly to changing system conditions, and support the growing local system demands. The stations can operate many hours a day, or only a few hours per year, depending on the condition of the region's electrical grid. Fortunately, these stations produce minimal environmental impacts, while offering many benefits to their communities by providing the cleanest and safest generated energy possible.

As the nation continues to be threatened by the rising demand for clean energy, Illinois is seeking better ways to meet this need, as well as update its aging electrical system. A new way of generating and distributing electricity most efficiently that is being considered is through the use of a new digital system referred to as "smart grids." This technology would allow rapid communication between energy producers, consumers and electric hardware to efficiently compensate for growing demand. However, this requires an extensive analysis of studies of benefits and possible problems for its stakeholders.

Presently, California and Texas are leading in using the smart grid system, along with 44 other states nationwide. Because of a new state law that was approved in 2011, and funds received for system upgrades from the 2009 American Recovery Reinvestment Act, Illinois is getting closer to joining those states. Construction of both stations is slated to begin sometime in the middle of 2014. The peaking stations are slated for full operations in mid- or late 2015, if all goes as planned.

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