Combined Heat and Power

Transcription

1 Combined Heat and Power

2 Member Services OMA Member Services Assistance on energy-efficiency projects Have a burning question technical or otherwise Need help filling out rebate applications Need help filing a mercantile application for rider exemption Need another eye to check the utilities analysis Would like an opinion prior to submitting an application 15 min a few hours we re yours to use >> a few hours we ll help find you resources

3 Efficiency News PJM efficiency market get money for your projects If you haven t taken a rebate If you are in muni or cooperative territory, especially Rider exemption from efficiency program Or, for the next few months AEP Projects in 2011/12 FE Projects in 2011/12/13 DP&L/Duke Projects in 2011/12/13/14 (June to May) Added benefit of pushing prices down

4 Efficiency News First Energy New website OMA administrator code New energy audit program 50% of audit cost no cap for larger customers New retro-commissioning program Low-cost/no-cost measures Can include mfg equipment (ex. Compressed air leaks) $0.03 /kwh capped at 50% of implementation, including internal labor

5 Efficiency News AEP Bid-to-Win We have $500,000 of reserved higher than custom/prescriptive levels Need at least 3,000,000 kwh savings Can cover 1-2 large projects Green Motor Rewind pilot Have your rewind shop enrolled motors lose 0.5% efficiency each rewind DP&L New energy audit program for businesses 50% cost share with a cap The other 50% paid if projects implemented, cost of projects > cost share

6 In the News Global energy politics Russia & Ukraine Europe 32% of oil imports from Russia; 39% of gas imports Much flows through Ukraine US offering Ukraine $1 billion loan guarantee US Treasury statement US is ready to provide assistance and financing to enhance energy efficiency, helping to reduce dependence on imported gas. Kerry on exporting LNG to Ukraine, We re all for it

7 The Potential of CHP Courtesy Midwest CHP TAP

8 The Potential of CHP ~ 33% ~ 40 to 50% Courtesy Midwest CHP TAP

9 United States CHP Potential

10 Existing Ohio CHP As of 2011 Total CHP generation capacity of MW 50 total CHP sites in Ohio Ohio was 43 rd in installed CHP io_chp2_ps.pdf

11 Potential Ohio CHP Ohio is ranked 5 th in CHP/WER potential power U.S. DOE estimated technical potential at 9,800 MW

12 Why Regulatory Changes? CHP Similar in cost to typical efficiency programs Cheaper than other types of generation Better use of natural gas resource If CHP is so good Mfg have a 1-3 year payback threshold Utilities have a much longer payback, typically guaranteed through the rate-base Regulation changes create a more even playing field

13 Analysis Screening versus Investment Grade Screening Is your facility a good candidate? What is the approximate simple payback How will capacity prices, incentives, net-metering, standby-rates effect your simple payback Investment grade Thorough analysis based on measured data

14 Capacity Charges Plant demand (kw) relates to capacity charges Peak load contribution (PLC) set by kw of your plant during 5 coincident peaks Capacity charges are volatile, increasing over next few years

15 $357 First Energy $114

16 Capacity Charges What s this mean? Your electricity prices will increase Will these high prices occur again? If new generation is to be built YES Even higher Prices must go up to justify new generation $357 First Energy $114

17 Utility Incentives Could take ½-cent off of CHP power-purchase agreements If incented at custom levels, could take 2-3 years off of payback

18 Net-Metering Allows for over-generation to be credited to account kwh or $ is credited within billing period (part of the debate) Consider shift differences for manufacturers Definition of micro-turbine specifically included Net metering used to be solar and wind focused Applies to systems under 20 MW

19 Cost of Power Power is extraordinarily expensive when it s not there Electric Power Research Institute (EPRI, 2001) estimates between $104 and $164 BILLION per year A 1-hour outage costs $7,795 /business As high as $1.5 million, with industry bearing brunt Lawrence Berkeley National Lab (LBNL, 2004) $30 - $130 billion Ohio Manufacturer s Association $1.08 billion to Ohio manufacturers from the 2003 blackout

20 Cost of Power Steel company lost ability to cool furnaces; molten iron burned through side of furnace; company filed Chapter 11 in 2 months Steel mill manually refilling cooling jackets Auto manufacturer had molten metal cool and solidify inside furnace, requiring clean-out and rebuild Loss of refineries threatened gasoline shortage

21 Stand-by Rates If your CHP system meets or exceeds your electrical load (meaning, you could potentially export electricity)

22 Carbon Reduction Goals Companies with carbon reduction goals or sustainability indexes may find revenue-neutral CHP to be attractive Companies with reduction goals: Coca-cola McDonalds Honda Omnova Solutions

23 Thanks for Listening! John Seryak, PE x302