Combined Heat & Power (CHP) Opportunities in Nevada

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1 Cmbined Heat & Pwer (CHP) Opprtunities in Nevada U.S. DOE Pacific CHP Technical Assistance Partnership Nevada Legislative Cmmittee n Energy 6/17/2016 Gene Kgan (858) Gene.Kgan@energycenter.rg Agenda Item IX A-1 (ENERGY) Meeting Date:

2 Presentatin Overview DOE CHP TAP Technical Assistance Overview f Cmbined Heat & Pwer (CHP) Cncept Benefits Market Energy Plicies Favrable fr CHP Nevada CHP Technical Ptential Why is CHP a gd fit fr the State f Nevada? Example CHP Prjects Wrking with the Pacific CHP TAP Questins 2

3 President s Executive Order 13624: 40GW f new CHP by 2020 CHP TAPs are critical cmpnents f achieving the gal: Reginal CHP experts Prvide fact-based, un-biased infrmatin n CHP Technlgies Prject Develpment Prject Financing Lcal electric and natural gas interfaces State best practice plicies Vendr, fuel, and technlgy neutral stributedenergy/chptaps.html 3

4 Pacific CHP TAP: Key Activities Market Opprtunity Analysis. Supprting analyses f CHP market pprtunities in diverse markets including industrial, federal, institutinal, and cmmercial sectrs Educatin and Outreach. Prviding infrmatin n the energy and nn-energy benefits and applicatins f CHP t state and lcal plicy makers, regulatrs, end users, trade assciatins, and thers. Technical Assistance. Prviding technical assistance t end-users and stakehlders t help them cnsider CHP, waste heat t pwer, and/r district energy with CHP in their facility and t help them thrugh the develpment prcess frm initial CHP screening t installatin. ributedenergy/chptaps.html 4

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6 CHP: A Key Part f Our Energy Future Frm f Distributed Generatin (DG) An integrated system Lcated at r near a building / facility Prvides at least a prtin f the electrical lad and Uses thermal energy fr: Space Heating / Cling Prcess Heating / Cling Dehumidificatin CHP prvides efficient, clean, reliable, affrdable energy tday and fr the future. Surce: edenergy/pdfs/chp_clean_energy_slutin.pdf 6

7 CHP Recaptures Heat f Generatin, Increasing Energy Efficiency, and Reducing GHGs 94 units 56 units Fuel Fuel Pwer Plant 32% efficiency (Including T&D) Onsite Biler 80% efficiency 30 units Electricity Heat CHP 75% efficiency Fuel 100 units 45 units Ttal Efficiency ~ 50% Ttal Efficiency ~ 75% 30 t 55% less greenhuse gas emissins 7

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9 What Are the Benefits f CHP? CHP is mre efficient than separate generatin f electricity and heating/cling Higher efficiency translates t lwer perating csts (but requires capital investment) Higher efficiency reduces emissins f all pllutants CHP can als increase energy reliability and enhance pwer quality 9

10 Emerging Natinal Drivers fr CHP Benefits f CHP recgnized by plicymakers DOE / EPA CHP Reprt (8/2012) President Obama signed an Executive Order t accelerate investments in industrial EE and CHP n 8/30/12 that sets natinal gal f 40 GW f new CHP installatin ver the next decade State Prtfli Standards (RPS, EEPS), Tax Incentives, Grants, standby rates, etc. Favrable utlk fr natural gas supply and price in Nrth America Opprtunities created by envirnmental drivers Utilities finding ecnmic value Energy resiliency and critical infrastructure Reprt: y/pdfs/chp_clean_energy_slutin.pdf 10

11 Critical Infrastructure and Resiliency Benefits f CHP Critical infrastructure refers t thse assets, systems, and netwrks that, if incapacitated, wuld have a substantial negative impact n natinal security, natinal ecnmic security, r natinal public health and safety. Patrit Act f 2001 Sectin 1016 (e) Applicatins: Hspitals and healthcare centers Water / wastewater treatment plants Plice, fire, and public safety Centers f refuge (ften schls r universities) Military/Natinal Security Fd distributin facilities Telecm and data centers CHP (if prperly cnfigured): Offers the pprtunity t imprve Critical Infrastructure (CI) resiliency Can cntinue t perate, prviding uninterrupted supply f electricity and heating/cling t the hst facility 11

12 CHP Tday in the United States Other Industrial 6% Other Manufacturing 6% Metals 5% Existing CHP Capacity (MW) Cmmercial/ Institutinal 14% Fd 8% Paper 14% Chemicals 28% Refining 19% Surces: DOE/ICF CHP Installatin Database (U.S. installatins as f December 31, 2014); EIA Energetics, US Manufacturing Energy Use and Greenhuse Gas Emissins Analysis, Nvember GW f installed CHP at ver 4,400 industrial and cmmercial facilities 8% f U.S. Electric Generating Capacity; 14% f Manufacturing Avids mre than 1.8 quadrillin Btus f fuel cnsumptin annually Avids 241 millin metric tns f CO 2 cmpared t separate prductin 12

13 CHP Is Used Natinwide >4,400 CHP Sites (2014) 82,700 MW installed capacity (2014) Saves 1.8 quads f fuel each year Avids 241 M metric tns f CO 2 each year 86% f capacity industrial 69% f capacity natural gas fired Surce: DOE CHP Installatin Database (U.S. installatins as f Dec. 31, 2014) 13

14 Nevada Energy Plicies Favrable fr CHP NRS (NV Energy Prtfli Standard) includes CHP/Cgeneratin as eligible energy efficiency resurce where CHP can ffset cnsumptin (kwh) and demand (kw) and reduce csts NV Senate Bill 123 (2013) requires NV Energy t retire 800 MW frm cal-fired plants by 2019 with 900 MW f capacity frm cleaner facilities t replace it: 350 MW frm renewable energy plants and 550 MW frm ther electric generating plants, including natural gas NV Senate Bill 358 (2009) directed the Directr f the NV GOE t develp and maintain a state energy reductin plan requiring state agencies t reduce gridbased energy purchases fr state-wned buildings by 20% by CHP is included as ne f the methds available t the state t meet this gal. Surce: Surce: Surce: 14

15 CHP Opprtunities in Nevada CHP Technical Ptential (nsite) = 1,370 Megawatts Htels Chemicals District Energy Lps withut CHP Schls Cmmercial Office Buildings Cllege/Univ. Multifamily Buildings Hspitals Surce: ICF Internal Estimates CHP Technical Ptential (Megawatts) 15

16 CHP Installatins Summary in Nevada Market Sectr Sites kw Chemicals 1 105,000 Pulp and Paper 1 85,000 Stne/Clay/Glass 1 85,000 Agriculture (greenhuse) 1 61,300 Slid Waste Facility 1 11,000 Htels/Resrts 2 9,209 Petrleum Refining 1 7,500 Printing/Publishing 1 3,000 Hspitals 1 1,000 Amusement/Recreatin Cllege/University 1 30 Multifamily Buildings 2 25 Fuel Type Sites kw Natural Gas ,714 Bimass 1 11,000 Waste Heat 1 7,500 Ttal ,214 Ttal ,214 Surce: U.S. DOE CHP Installatin Database (as f December 2015) 16

17 CHP Prject Snapsht: Sustainability (Htels/Casins) Surce: MGM Internatinal MGM Internatinal (CityCenter) Las Vegas, NV Applicatin/Industry: Htels/Casins Capacity (MW): 8 MW Prime Mver: Gas Turbine Fuel Type: Natural Gas Thermal Use: Dmestic ht water Installatin Year: 2009 Testimnial: MGM Resrts develped the CityCenter prject with an eye n sustainability and functinal design. Resrt peratins require cnsistent and reliable access t electricity and ht water fr guest services and htel security functins s CHP was an integral cmpnent t the campus develpment. The installed CHP plant prvides mre than 25 percent f the annual electricity used at the CityCenter campus and gives MGM Resrts a measure f resiliency frm the lcal electricity grid nt available at ther resrts. In the event f a grid failure, CityCenter has the ability t maintain peratins f critical functins. In 2009, CityCenter was awarded six Gld LEED certificatin frm the U.S. Green Building Cuncil, in part due t its superir energy perfrmance. Surce: MGM Internatinal Surce: MGM Resrts Deplys Clean Energy CHP System at CityCenter 17

18 CHP Prject Snapsht: Pwer Reliability (Chemical Industry) Evnik Industries Garyville, LA Applicatin/Industry: Chemical Capacity (MW): Prime Mver: Fuel Type: Thermal Use: 5 MW Gas Turbine Natural Gas Prcess Steam Installatin Year: 2012 Testimnial: Evnik decided t invest in a CHP system t imprve bth their electric pwer and steam reliability. The system prvides 100% f the facility s electric needs fr mst f the year and eliminated Evnik s dependency n their previus steam supplier, minimizing disruptins that were ut f their cntrl. Surce: Evnik, Garyville, LA 18

19 CHP Prject Snapsht: District Energy (Hspitals/Healthcare) Texas Medical Center (TMC) Hustn, TX Applicatin/Industry: Hspital Capacity (MW): Prime Mver: Fuel Type: Thermal Use: 48 MW Gas Turbine Natural Gas Prcess Steam Installatin Year: 2010 Testimnial: TECO perates the largest chilled water district energy system in the U.S. at the largest medical center in the wrld, the Texas Medical Center. The CHP system can perate as a baselad system t serve 100% f the TECO plant peak electrical lad and 100% f TECO custmers peak prcess and space heating lads. Surce: U.S. DOE Suthwest CHP TAP Prject Prfile _Medical_Center-Prject_Prfile.pdf 19

20 CHP Prject Snapsht: Micrgrid Cnfiguratin (University) University f Califrnia at San Dieg San Dieg, CA Applicatin/Industry: Cllege/University Capacity (MW): Prime Mvers: Fuel Type: Thermal Use: 42 MW Gas Turbine / Fuel Cell Natural Gas / Bigas Dmestic ht water Installatin Year: 2001 Testimnial: With a daily ppulatin f ver 45,000 and a number f energy intensive research and medical facilities perating 7/24, UC San Dieg is the size and cmplexity f a small city. In 2001, UCSD decided t pursue CHP as a way t prvide reliable, cst effective pwer t the entire campus. UCSD self generates ver 70% f its electric demand frm tw surces: a 27MW natural gas CHP pwer plant and a 2.8MW bigas pwered fuel cell. An additinal 22% f its electric demand is cvered by slar PV and electric batteries. Only 8% f electric demand is purchased frm the grid. The micrgrid includes a thermal energy strage system that cvers 95% f heating and cling fr the campus. Surce: UCSD ( Energy-Prductin) 20

21 Attractive CHP Markets Industrial Chemical manufacturing Fd prcessing Natural gas pipelines Petrchemicals Pharmaceuticals Rubber and plastics Cmmercial Htels and Casins Restaurants Cmmercial ffice buildings Data centers Multifamily buildings Supermarkets Gvernment buildings Institutinal Hspitals Crrectinal Facilities Clleges & Universities Wastewater treatment Schls (K 12) Agricultural Wd waste (bimass) Cncentrated animal feeding peratins Dairies 21

22 CHP Technical Assistance Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Prcurement, Operatins, Maintenance, Cmmissining US DOE CHP TAP Services: Quick screening questins with spreadsheet payback calculatr. Uses available site infrmatin. Estimate: savings, Installatin csts, simple paybacks, equipment sizing and type. 3 rd Party review f Engineering Analysis. Review equipment sizing and chices. Review specificatins and bids, Limited peratinal analysis 22

23 CHP Prject Resurces DOE/EPA Catalg f CHP Technlgies (updated 2014) DOE CHP Installatin Database (List f all knwn CHP systems in U.S.) energy.gv/chp-installs 23

24 CHP Prject Resurces DOE Prject Prfile Database (150+ case studies) DOE Database f Incentives & Plicies (DSIRE) energy.gv/chp-prjects 24

25 Next Steps Prvide educatinal and technical assistance by: Wrking with NV GOE and SW GAS t identify end user interest Identificatin f ptential new CHP market sectrs and prjects Offering available resurces fr CHP site screenings, feasibility studies, and ther advanced technical assistance Educating state lawmakers and affiliated gvernmental grups n the benefits f CHP in the state and CHP technical ptential in cmmercial & industrial applicatins 25

26 Thank Yu Questins? Gene Kgan (858)