Cleaner Energy, Greener Profits

This 2005 report by the Rocky Mountain Institute (RMI) argues that fuel cells can be cost-effective distributed energy resources (DER) by capturing economic benefits beyond simple energy generation, such as deferring utility distribution investments and providing premium reliability for the digital economy.

• Fuel cells are high-capital-cost but low-energy-cost power sources. As of 2001, the cost per kilowatt (kW) of fuel cell capacity was approximately 7 to 10 times higher than that of combined-cycle combustion turbines used in central generating stations.
• Distributed generation (DG) provides 'option value' through small scale and modularity. This reduces financial risk and cost by allowing capacity to be added in flexible increments with shorter lead times, avoiding the 'lumpy' investments and idle capacity associated with large central plants.
• DG can provide significant cost savings by deferring investments in utility distribution capacity. Using area- and time-specific (ATS) cost analysis, utilities can identify 'hot spots' where the marginal distribution capacity cost (MDCC) is high, ranging from $0/kW to over $1,000/kW.
• Fuel cells offer critical reliability benefits for the digital economy, where businesses like data centers and semiconductor fabs face extreme costs from even brief power outages. DG can increase reliability to 'five nines' (99.999%) or higher for critical loads.
• Environmental and siting advantages make fuel cells more competitive than other DG options like reciprocating engines or turbines, especially in urban 'non-attainment areas' for oxides of nitrogen (NOx) where strict air quality permits are required.
• The report identifies a near-term commercialization path for fuel cells in grid-connected systems for commercial buildings, communication facilities, and semiconductor fabs that require both high reliability and low emissions.
• A long-term commercialization strategy involves integrating stationary fuel cells with fuel cell vehicles. Parked vehicles could act as mobile power plants, delivering electricity back to the grid during peak-demand hours (Vehicle-to-Grid or V2G).
• Fuel cells can provide electrical engineering savings by reducing system losses, providing voltage and reactive power support, and extending the life of aging distribution equipment.

APA

Swisher, J. N. (2005). Cleaner Energy, Greener Profits. RMI. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_U02-02_CleanerGreener.pdf

Chicago

Swisher, Joel N. Cleaner Energy, Greener Profits. RMI, 2005. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_U02-02_CleanerGreener.pdf.

Wikipedia

{{cite report |last1=Swisher |first1=Joel N. |title=Cleaner Energy, Greener Profits |publisher=RMI |date=2005 |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_U02-02_CleanerGreener.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{swisher2005cleaner, author = {Swisher, Joel N.}, title = {{Cleaner Energy, Greener Profits}}, institution = {RMI}, year = {2005}, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_U02-02_CleanerGreener.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }