Challenges for fuel cells as stationary power resource in the evolving energy enterprise

The primary market challenges for fuel cells as stationary power resources in evolving energy markets are reviewed. Fuel cell power systems have significant barriers to overcome in their anticipated role as decentralized energy power systems. Market segments for fuel cells include combined heat and power; low-cost energy, premium power; peak shaving; and load management and grid support. Understanding the role and fit of fuel cell systems in evolving energy markets and the highest value applications are a major challenge for developers and government funding organizations. The most likely adopters of fuel cell systems and the challenges facing each adopter in the target market segment are reviewed. Adopters include generation companies, utility distribution companies, retail energy service providers and end-users. Key challenges include: overcoming technology risk; achieving retail competitiveness; understanding high value markets and end-user needs; distribution and service channels; regulatory policy issues; and the integration of these decentralized resources within the electrical distribution system.