Is diesel generators cheaper to run than ordinary electricity supply? | Electricity Bills Information

Is diesel generators cheaper to run than ordinary electricity supply?


yes if utility power is not available
like in remote area…

otherwise, utility power is much more economical

Guru

5 Responses

  1. monophoto Says:

    In general, the cost of electricity produced using diesel generators is greater than the cost of commercial power, especially when the capital cost of the generation is taken into consideration.

    However, there is one instance where the economics can be skewed in favor of operating with generation.

    In most commercial situations, the rate structure imposed by the utility supplier includes a ‘demand charge’. That is a factor that is based on the highest level of consumption recorded over a short interval of time (typically 15 to 30 minutes). Once that demand level has been established, the commercial venue will be charged for that demand for a period of time, often a year or more. The rationale for this is that the utility must construct the infrastructure needed to support that interval of peak consumption, and regardless of whether that level of consumption is maintained, the utility needs to charge for that peak for an extended period to recover the cost of that infrastructure.

    So this results in the situation where a performance venue, that might be empty and unused for 29 days out of a month, might decide that it is less expensive to rent diesel generation to support a single performance on the thirtieth day rather than risk establishing a high peak demand during the performance that it would end up paying for for a year or more. And if fact it is relatively common for performance venues or recording studios to take this approach, and there are businesses that have been built up around the model of supplying rental generation equipment specifically for those applications.
    References :

  2. guru Says:

    yes if utility power is not available
    like in remote area…

    otherwise, utility power is much more economical

    Guru
    References :

  3. Acka Says:

    If you can run it off chip fat (gratis) then it will be much cheaper!

    A good dollop of paraffin also helps with the running costs of a diesel.
    References :

  4. oil field trash Says:

    In general it is very difficult for a diesel generator to compete with commercial power simply because of economy of scale. Only in locations where regulations skew utility costs upward based on factors other than capital and operating costs can a relatively small generator compete.
    References :

  5. whycantigetagoodnickname Says:

    It depends on the situation.

    If you are a normal user of electricity with a steady demand all day or all of the wroking day then no.

    It is cheaper if:
    You are remote from the electricity grid and have to pay £££££ for a connection
    You have a steady power requirement apart from the occasional huge demand
    (You can get free diesel)
    and a couple of other occasions but generally not cheaper – the electricity companies can make money from having huge generators and so economies of scale come into force. For a small user it isn’t that viable
    References :

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