Geothermal Heat Pump Industry

Transcription

1 Status Market of the Barriers Geothermal and Heat Drivers Pump for Industry the Geothermal Heat Pump Industry American Ground Water Trust Illinois Renewable Energy Conference Geothermal Exchange Organization Douglas A Dougherty Douglas A. Dougherty President and CEO 1

2 Market Barriers and Drivers for the Status of the Geothermal Heat Pump Industry Geothermal Heat Pump Industry American Ground Water Trust Illinois Renewable Energy Conference What is GEO? Market Barriers to Geothermal Heat Pumps Market Drivers for Geothermal Heat Pumps Advocacy Efforts to Grow the Industry 2

3 GEO is the Voice of the Geothermal Heat Pump Industry in the United States Advocacy Partnerships Outreach Standards OUR OBJECTIVES Sensible Public Policy Common Interests with Allies for Strength In Numbers Public Relations and Outreach Promotion of Quality in Promotion of Quality in Training, Certification and Accreditation 3

4 GHP Ground Loop Options There are several ways to connect your home to the Earth s Energy Battery Closed Loop Systems The loops reject and absorb heat to and from the ground High Density Polyethylene Pipe Guaranteed 50 Year+ Life 0.75 to 1.5 diameter in size Contains water or water and antifreeze solution for heat exchange Invisible after land is graded 4

5 The Earth is a Source of Heat in Winter Outdoor air design temperature -5 F 72 F 50 F Geothermal heat pumps transfer heat from underground d into buildings to provide heating 5

6 and a Place to Reject Heat in Summer Outdoor air design temperature 95 F 74 F 50 F Geothermal heat pumps transfer heat from buildings into the ground to provide cooling 6

7 Geothermal Heat Pumps Transfer Heat Efficiently in the Summer 7

8 Geothermal Heat Pumps Transfer Heat Efficiently in the Winter 8

9 Market Barriers to Geothermal Heat Pumps Outdated Regulatory Policies Lack of Contractor Infrastructure Fossil Fuel Competition Failure to Monetize the Heat Exchanger 9

10 Outdated Regulatory Policies Silos of Regulation Use of Outdated Tests and Measurements Underestimation of Peak Reduction 10

11 Silos of Regulation Natural Gas Electricity 11

12 Use of Outdated Tests and Measurements Total Resource Cost Test (TRC) Lack of Societal Benefits CO 2 Reduction PUCs vs. State Environmental Agencies Indoor Air Quality Schools 12

13 Underestimation of Peak Reduction Air Source vs. Geothermal Heat Pumps Rampant use of invalid comparisons of working temperatures and system life. Western Farmers Cooperative Study Geothermal Heat Pumps found superior to ASHPs for load reduction. Ongoing studies and GoGoGeo Challenge to confirm superiority of Geothermal Heat Pumps for large-scale installation program. 13

14 Air Source vs. Geothermal Efficiency Geothermal = 14 to 15 EER Ene ergy Efficiency EER Air Source 7.5 Ton 11 EER 10 Ton 11 EER 15 Ton 10.6 EER 20 Ton 10 EER Outdoor Temperature 14

15 Cost Effective for Commercial Buildings Geothermal Heat Pumps vs. Conventional HVAC Energy use of a Geothermal Heat Pump System compared to a conventional Heating, Ventilation and Air Conditioning (HVAC) system at the Garrett Office Buildings in Edmond, Oklahoma. The buildings are identical, except one relies on Geothermal, the other on conventional HVAC. 47% Site Energy Savings 35% Peak Energy Reduction 15

16 Pensacola McDonald s with a GHP 47% Less Power Consumption Compared to Conventional System KWH 13% variation in monthly Kwh for Geo Source: Gulf Power 16

17 Market Drivers for Geothermal Heat Pumps Corporate Adoption The High Cost of Pro Pain Monetizing the Heat Exchanger Climate Change GEO Advocacy 17

18 Corporate Geo Adoption - Walgreens Walgreens Net Zero Store at Evanston, Illinois 18

19 Corporate Geo Adoption - IKEA IKEA s Super Store in Centennial, Colorado uses Geothermal Heat Pumps for ALL of its thermal needs. 19

20 Corporate Geo Adoption McDonald s Select McDonalds Franchises are Installing Geo Systems 20

21 It s Time to Rethink Combustion in Buildings Oil, natural gas and propane replaced coal fired furnaces in buildings decades ago. The next evolution is to replace combustibles in buildings with a sensible option Geothermal (ground source) Heat Pumps. 21

22 Monetizing the Heat Exchanger Peak Smart Geothermal Loop Program Coop installs loop and retains ownership, including maintenance. Homeowner incurs a low monthly thermal charge of $15-25/month. Homeowners get cash rebate of $450 to $650/per ton (w/hot water). Geo homeowners get best available electric rate, saving about 10%. Cdd hi h ffi i i h t 25 30% l Caddo says high efficiency air source heat pumps are 25 30% less efficient than the geothermal. Why would you want to do that? 22

23 Monetizing the Heat Exchanger a personal experience 23

24 Setting the PACE A BIG problem for adopting clean and efficient energy technologies is covering higher upfront costs that installations present to home and building owners. Upfront cost is a big barrier to more widespread GHP use! Property Assessed Clean E lean Energy programs offer government financing of renewable and energy efficiency upgrades year loans are covered by investment bonds, assessed on owner s annual property tax bill. PACE loans are attached to property, not the individual. Owners start saving on energy immediately, while paying off cost over time. PACE Programs are in place for residential property in 14 states. Several more are considering them. Source: Wikipedia 24

25 Climate Change 25

26 Clean Air Act Section 111d Rule Power plants are responsible for 1/3 of U.S. carbon emissions. Climate Change EPA proposed rule (June 2) would slash carbon emissions from existing power plants 30% nationwide by EPA to finalize rule by June States will have another year to craft their plans. GEO is working with EPA to include Geothermal Heat Pumps as a compliance option for utilities 26

27 Levelized Cost of Energy LCEO Data Source: GHP Data Source: ClimateMaster Average price for U.S. Grid Electricity - $114 / MWh 27

28 Current GEO Initiatives Retention of Residential and Commercial Tax Credits Passage of Tax Extenders Et Bill for Bonus Depreciation, and Energy Efficient Homes and Buildings GHPs as Utility Compliance Option under EPA Carbon Dioxide Reduction Rules for Coal Fired Power Plants Thermal (GHP) Technologies in Energy Efficiency Legislation Support of State Level GHP Association Activities and Initiatives Support for Revived GHP Industry Data Compilation by the Energy Information Administration (DOE) Support for a U.S. Department of Energy GHP Office and Continuing Geothermal Heat Pump Research Partnering with Allied Organizations to Improve GHP Installation Training and Certification 28

29 Why Add GHPs to State RPS Laws? Provide more technology options for utilities to meet mandates Reduce GHP First Cost to home and business building owners Benefit economy with sales, drilling and installation Reduce use of conventional energy fuels and sources Coal (electricity) Nuclear (electricity) Natural Gas (electricity) Home Heating Fuels (natural gas, fuel oil, propane) GEO is Working to Include GHPs in Renewable and Clean Energy Standard Legislation at the Federal and State Levels 29

30 GEO Definition of GHPs as Renewable The term Renewable Energy means electric or thermal energy, generated from or avoided by solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal (including ground source, reclaimed water, or ground water), municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project. And for the purposes of determining compliance with renewable portfolio and/or efficiency standard requirements, Renewable Energy is deemed any energy consumption that is avoided through the use of renewable energy, and shall be considered as renewable energy produced. 30

31 GEO State Geothermal Initiatives Arizona California Colorado Illinois Iowa Maryland Massachusetts Michigan Missouri New Hampshire New York North Carolina Ohio Washington Wisconsin s and the number is growing! GEO is Helping with Local Initiatives and Urges Formation of State Geothermal Associations 31

32 Questions? Douglas A. Dougherty 32