Centralize vs Decentralize The Business Case Analysis

Transcription

1 Session: District Heating & Cooling: Centralize vs Decentralize Centralize vs Decentralize The Business Case Analysis Teresa S. Isenhour NAVFAC Mid Atlantic August 9, 2016 Rhode Island Convention Center Providence, Rhode Island

2 Business Case Analysis Considerations Options for Analysis Utilities Fuels Environmental Considerations Operations and Maintenance Energy Security Project Economics Energy Resiliency 2

3 Options for Analysis Central System Steam Hot Water Combined Heat and Power (CHP) Natural Gas Turbine with HRSG Decentralized System Boilers (Steam, Hot Water) Ground Source Heat Pumps Nodal Plants. Energy Modeling for Decision Making 3

4 Fuel Choices Natural Gas Fuel Oil Biomass Availability Pricing 4

5 Utilities Electric Rate schedule Demand savings Interconnect Agreement Natural Gas Rate schedule with Local Distribution Company (LDC) Commodity and Delivery Firm versus Interruptible Alternate Fuel Load Water Potable or Reuse Analysis of Future Energy Costs 5

6 Environmental Compliance NEPA Air Permitting National Emission Standards for Hazardous Air Pollutants (NESHAP) Requirements for work practice standards, demonstrated compliance, boiler tune up, energy assessments 40 CFR Part 63 Subpart DDDDD (5D), Major Source Industrial, Commercial, and Institutional Boilers & Process Heaters Subpart JJJJJJ (6J), Area Source Industrial, Commercial, and Institutional Boilers 6

7 Operations and Maintenance Equipment / Systems Complexity Required labor skills Quantity of equipment installed Minimum attendance requirements Level of automation Remote monitoring Water treatment Equipment Lay up 7

8 Energy Security Redundancy N+ 1 for Equipment Back up / Alternate Fuels Fuel Oil Storage Propane Equipment compatibility Impact on pricing 8

9 Project Economics Total Cost of Ownership Life Span of Equipment? Cost Escalation Rate? Fuel and Utilities Demolition or Abandon in Place? Lead and Asbestos Abatement Salvage Value? Source of Funding Return on Investment / Payback needed? 9

10 Energy Resiliency Available / Reliable / Quality power to improve mission continuity Microgrid Island mode Fast Load Shedding Energy Storage Multiple modes of operation Identify cost effective solutions Solutions beyond generator backup at the specific asset / critical mission Reduce cost while improving mission capability Make the Business Case Analysis broader 10

11 Example 1 Combined Heat and Power Naval Station Norfolk Installing 15 MW Combined Heat and Power (CHP) addition to existing Z 312 Steam Plant Sized to support minimum steam load Load duration curve Gas turbine with Heat Recovery Steam Generator (HRSG) and duct burner Contractor guaranteed availability of 95% Includes 10 MW of Standby Generation Two gas and two diesel standby generators Contract vehicle ESPC 11

12 Example 2 Steam Decentralization Naval Station Great Lakes Decentralize centralized CHP plant Gas Turbines with HRSG Install individual boilers in buildings Two steam nodes where available space in buildings limited Over 100 boilers installed Contract vehicle Military Construction Project 12

13 Example 3 Nodal Plants with CHP NSF Indian Head Replace centralized coal fired steam plant Construction of 11 steam nodes Includes one primary CHP node Gas turbine with HRSG and duct burner Dual fuel Reuse of portions of existing distribution Contract Vehicle Military Construction Project 13

14 Conclusion Determine must haves Prioritize Perform Business Case Analysis Energy Modeling Design / Construct / Operate / Maintain to Realize Project Goals 14