WEBINAR SERIES. Pre-Conference Webinar: Combined Heat and Power in the Southeast. October 13th, 2016

Transcription

1 WEBINAR SERIES Pre-Conference Webinar: Combined Heat and Power in the Southeast October 13th, 2016 Southeast Energy Efficiency Alliance 1

2 SEEA Serves the Southeast The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities. Regional Energy Efficiency Organization Eleven-state footprint Non-profit, non-partisan Southeast Energy Efficiency Alliance 2

3 The SEEA & AESP SE Conference Southeast Energy Efficiency Alliance 3

4 Upcoming Webinars November 10th, 2016 Missed one? Find webinar materials at Southeast Energy Efficiency Alliance 4

5 GoTo Webinar Instructions Open And Hide Your Control Panel Join Audio Choose Mic & Speakers to use VoIP Choose Telephone and dial using the information provided Questions Submit questions and comments via the Questions panel Southeast Energy Efficiency Alliance 5

6 Speakers Anne Hampson ICF Meegan Kelly ACEEE Southeast Energy Efficiency Alliance 6

7 Combined Heat and Power in the Southeast A pre-conference webinar October 13, 2016 Anne Hampson Senior Manager ICF

8 Over Two-Thirds of the Fuel Used to Generate Electrical Power in the U.S. Is Lost as Heat SEEA Webinar - CHP in the Southeast 8

9 What is Combined Heat and Power? CHP is an integrated energy system that: Generates electrical and/or mechanical power Recovers waste heat for: Space heating Water heating Space cooling Dehumidification Is located at or near a factory or building that can use the energy output Can utilize a variety of technologies and fuels CHP is also known as cogeneration SEEA Webinar - CHP in the Southeast 9

10 Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP) Separate Energy Delivery: Electric generation 33% Thermal generation - 80% Combined efficiency 45% to 55% SEEA Webinar - CHP in the Southeast CHP Energy Efficiency (combined heat and power) 70% to 85% 10

11 Defining Combined Heat & Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source Waste Heat to Power CHP (also referred to as Bottoming Cycle CHP or Indirect Fired CHP) HRSG/Steam Turbine Organic Rankine Cycle Backpressure Turbine Steam Turbine Electricity Heat Fuel first applied to produce useful thermal energy for the process Waste heat is utilized to produce electricity and possibly additional thermal energy for the process Fuel Heat recovery steam boiler Energy Intensive Industrial Process Waste heat from the industrial process Simultaneous generation of heat and electricity No additional fossil fuel combustion (no incremental emissions) Normally produces larger amounts electric generation (often exports electricity to the grid; base load electric power) SEEA Webinar - CHP in the Southeast 11

12 CHP in the U.S. Represents a Variety of Fuels, Technologies, Sizes, and Applications Industrial Institutional Residential Utility Scale Commercial SEEA Webinar - CHP in the Southeast 12

13 CHP Today in the U.S. 81 GW of installed CHP at over 4,300 industrial and commercial facilities 8% of U.S. Electric Generating Capacity; 14% of Manufacturing Avoids more than 1.8 quadrillion Btus of fuel consumption annually Avoids 241 million metric tons of CO 2 compared to separate production DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015) SEEA Webinar - CHP in the Southeast 13

14 What Are the Benefits of CHP? CHP is more efficient than separate generation of electricity and thermal energy Higher efficiency translates to lower operating costs Higher efficiency reduces emissions of all pollutants, including CO 2, NO X, and SO 2 CHP can increase power reliability and enhance power quality On-site electric generation can help reduce grid congestion SEEA Webinar - CHP in the Southeast 14

15 CHP Is a Clean, Efficient Method of Providing Energy Services Source: EPA CHP Partnership SEEA Webinar - CHP in the Southeast 15

16 CHP s Increased Efficiency General Results in Lower Emissions Source: EPA CHP Partnership SEEA Webinar - CHP in the Southeast 16

17 CHP Is Used at the Point of Demand DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015) SEEA Webinar - CHP in the Southeast 17

18 CHP Installations Less than 100 MW Represent an Increasing Share of New Capacity SEEA Webinar - CHP in the Southeast 18

19 CHP s Higher Efficiency Results in Energy and Emissions Savings Category 10 MW CHP 10 MW PV 10 MW Wind 10 MW NGCC Annual Capacity Factor 85% 22% 34% 70% Annual Electricity 74,446 MWh 19,272 MWh 29,784 MWh 61,320 MWh Annual Useful Heat Provided 103,417 MWh t None None None Footprint Required 6,000 sq ft 1,740,000 sq ft 76,000 sq ft N/A Capital Cost $20 million $60.5 million $24.4 million $10 million Annual Energy Savings, MMBtu Annual CO 2 Savings, Tons 308, , , ,649 42,751 17,887 27,644 28,172 Annual NOx Savings Source: Combined Heat and Power: A Clean Energy Solution, August 2012, DOE and EPA SEEA Webinar - CHP in the Southeast 19

20 Drivers for CHP Growth Benefits of CHP recognized by Federal and State policymakers White House Executive Order: 40 GW by 2020 Increasing state interest (Ohio, Maryland, New Jersey, etc.) Game changing outlook for natural gas supply and price in North America Resulting growth in the industrial sector Opportunities created by environmental drivers Clean Power Plan Pressures on utility coal and oil capacity CHP offers resiliency options when faced with man-made and natural disasters SEEA Webinar - CHP in the Southeast 20

21 Federal Support for CHP Executive Order: Coordinate and strongly encourage efforts to achieve a national goal of deploying 40 gigawatts of new, cost-effective industrial CHP in the United States by the end of DOE focuses technology deployment support for CHP TAPs and SEEAction Regional meetings in support of Executive Order EPA recognizes CHP as an efficiency measure under developing greenhouse gas emission standards and promoting output-based options that recognize CHP benefits (ICI Boiler MACT and Utility MACT (MATS), and Clean Power Plan) FERC pressing to open ancillary services markets to DG and CHP SEEA Webinar - CHP in the Southeast 21

22 CHP Provides Energy Reliability and Resiliency Benefits Traditional backup generators do not always perform during emergencies A system operating on a daily basis (CHP) is more reliable CHP provides continuous benefits to hos facilities, rather than just during emergencies CHP systems that kept running during Sandy: South Oaks Hospital Amityville, NY, 1.25 MW The College of New Jersey Ewing, NJ, 5.2 MW Public Interest Data Center New York, NY, 65 kw Bergen County Wastewater Plant Little Ferry, NJ New York University New York, NY Sikorsky Aircraft Corporation Stratford, CT SEEA Webinar - CHP in the Southeast 22

23 Critical Infrastructure Facilities That Benefit from CHP Healthcare Hospitals, nursing homes Wastewater Treatment Plants Facilities of Refuge College campuses, schools, community centers Hotels with kitchens, laundries Food distribution, including cold storage and supermarkets Communications/Data Centers Public Safety Jails/prisons, fire/ems Transportation Centers (Airports) SEEA Webinar - CHP in the Southeast 23

24 The Potential for Additional CHP is Nationwide <1,000 MW 1,000-3,000 MW 3,000-5,000 MW Source: U.S. Dept. of Energy, Combined Heat and Power in the United States, prepared by ICF International, March SEEA Webinar - CHP in the Southeast >5,000 MW 24

25 Where is the Remaining Potential for CHP? Source: U.S. Dept. of Energy, Combined Heat and Power in the United States, prepared by ICF International, March SEEA Webinar - CHP in the Southeast 25

26 CHP Technical Potential - Southeast Technical Potential by State (MW) Technical Potential by Application (MW) SEEA Webinar - CHP in the Southeast 26

27 Thank you Anne Hampson ICF

28 Combined Heat and Power in the Southeast A pre-conference webinar Meegan Kelly Senior Research Analyst, Industry Program ACEEE October 13, 2016

29 The American Council for an Energy- Efficient Economy (ACEEE) ACEEE is a 501(c)(3) nonprofit that acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, & behaviors 50 staff; headquarters in Washington, D.C. Focus on end-use efficiency in industry, buildings, & transportation Other research in economic analysis; behavior; energy efficiency programs; & national, state, & local policy Funding: Foundation Grants (52%) Contract Work & Gov t. Grants (20%) Conferences & Publications (20%) Contributions & Other (8%) 29

30 Overview CHP in the 2016 State Energy Efficiency Scorecard Policies from highest ranking states Snap shot of CHP policy in the Southeast Opportunities to advance CHP in the Southeast region Utility-ownership model Trends in the Southeast

31 2016 State Energy Efficiency Scorecard 1. Utility programs and policies 2. Transportation policies 3. Building energy codes 4. Combined heat and power 5. State government-led initiatives 6. Appliance and equipment efficiency standards Source: Berg, et al 2016: 31

32 CHP Scorecard Methodology Metric Points Interconnection standards Encouraging CHP as a resource 0.5 pts 2.0 pts EERS treatment (0.5 pts) CHP resource acquisition programs (0.5 pts) Production goal (0.5 pts) Revenue streams (0.5 pts) Deployment incentives 0.5 pts Other supportive policies 1.0 pt Total 4 pts

33 Highest ranking states on CHP CA, MD, MA earned full 4 points All allow CHP within EERS, offer deployment incentives, and have supportive policies EERS treatment (0.5) Encouraging CHP as a resource CHP Programs (0.5) Revenue streams (0.5) Deployment Incentives (0.5) Supportive Policies (1) Score (4) State Interconne ction (0.5) Production Goal (0.5) California Maryland Massachusetts New York Rhode Island Maine Connecticut Minnesota Oregon Pennsylvania Washington Source: Berg, et al 2016: 33

34 Southeast state scores for CHP FL, NC, and TN earn high scores in region Most states have supportive policies CHP is not currently prioritized as an energy resource in Southeast State Interconnec tion (0.5) EERS treatment (0.5) Encouraging CHP as a resource CHP Programs (0.5) Production Goal (0.5) Revenue streams (0.5) Deployment Incentives (0.5) Supportive Policies (1) Score (4) Florida North Carolina Tennessee Georgia Kentucky Louisiana Mississippi Alabama Arkansas South Carolina Source: Berg, et al 2016: 34

35 MW Installed Capacity Number of Installations Recent CHP installations in Southeast AL AR FL GA KY LA MS NC SC TN Total new capacity installed in 2014 and 2015 (MW) Total number of new CHP installations in 2014 and Source: US DOE CHP Installation Database (as of December 31, 2015)

36 Recent CHP policy action in Southeast North Carolina: Expiration of tax credit for CHP systems at the end of 2015; NCUC ruling that only waste heat component of topping cycle CHP meets definition of EE measure. Mississippi: Combined Heat and Power: Opportunities and Barriers study completed and findings released in Tennessee: In 2015, TVA issued a request for proposals to industrial customers to provide up to $7 Million for at least 5 MW of customer-owned generation from CHP.

37 Learn about CHP policies in your state ACEEE State and Local Policy Database g/

38 Opportunities to encourage CHP in states Define CHP as an eligible technology for meeting state EE or RE goals Develop complementary programs designed to acquire CHP resources *Engage utilities as dedicated partners*

39 Two ways to plan and deploy CHP to maximize system benefits Customer-ownership Model CHP installed by customers for onsite benefits at their facilities State policy encourages utilities to incentivize CHP systems for energy savings and additional benefits Customer invests in CHP with financial support from utility Utility-Ownership Model CHP installed by utilities at customer sites for overall system benefits Investments are regulated assets and included in utility resources planning activities Utility invests in CHP and customer takes useful thermal energy 39

40 What are the benefits of utility-owned CHP? Cheaper than other supply alternatives Alleviates grid constraints Avoid investments in transmission and distribution infrastructure Less risky investment overall More reliable and resilient power for customer Better service and value for customers Air quality improvements and carbon reductions Encourages economic development 40

41 Utility ownership trends in Florida Florida Public Utilities built, owns, and operates a 20 MW CHP system at a large customer site providing: electricity to Amelia Island residents steam to Rayonier pulp mill PSC Chair praises utilityowned CHP business model Source:

42 Utility ownership trends in Carolinas Duke Energy added 40 MW of CHP to its 2015 Integrated Resource Plans (IRP) Duke Energy, Duke University partner to propose 21 MW campus CHP system

43 Utility ownership trends in Alabama Alabama Power already owns 500 MW of CHP in its service territory, primarily at large industrial facilities PSC approval of utility request for need to procure 500 MW of RE/CHP Sources: NACAA 2015, SEE Action 2013,

44 Overview of Key Points States are pursuing CHP to achieve system-wide benefits; SE has potential to do more Examples show that well-designed policies effectively encourage CHP More than one policy approach can maximize the benefits of CHP Exploring utility ownership of CHP in the Southeast is a path to achieve policy goals and encourage smart deployment. 44

45 Thank you! Meegan Kelly Senior Research Analyst, Industry

46 Questions? Southeast Energy Efficiency Alliance 46

47 Southeast Energy Efficiency Alliance 47