Critical Infrastructure and Resiliency Benefits of CHP and CHP Technical Assistance

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1 Session: Enabling Technologies for Energy Resiliency Critical Infrastructure and Resiliency Benefits of CHP and CHP Technical Assistance Beka Kosanovic U.S. DOE Northeast Combined Heat and Power Technical Assistance Partnership (CHP TAP) August 11, 2016 Rhode Island Convention Center Providence, Rhode Island 1

2 President s Executive Order 13624: 40GW of new CHP by 2020 DOE s AMO CHP Deployment Program assists industrial, institutional, commercial, and multifamily facilities/buildings to accelerate investment in energy efficient CHP thereby improving competitiveness, heightening energy security, and protecting our environment. The DOE CHP Technical Assistance Partnerships (CHP TAPs) provide: Regional CHP expertise Fact based, un biased information on CHP: Technologies Project development Project financing Local electric and natural gas supplier interfaces State best practice policies Vendor, fuel, and technology neutral assessments of CHP viability 2

3 DOE CHP Technical Assistance Partnerships (CHP TAPs) DOE's CHP TAPs promote and assist in transforming the market for CHP, waste heat to power, and district energy or microgrid with CHP throughout the United States. Key services include: Market Opportunity Analysis Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors Education and Outreach Providing information on the energy and nonenergy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others. Technical Assistance Providing technical assistance to end users and stakeholders to help them consider CHP, waste heat to power, and/or district energy or microgrid with CHP in their facility and to help them through the development process from initial CHP screening to installation. 3

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5 CHP: A Key Part of Our Energy Future Form of Distributed Generation (DG) An integrated system Located at or near a building / facility Provides at least a portion of the electrical load and Uses thermal energy for: Space Heating / Cooling Process Heating / Cooling Dehumidification CHP provides efficient, clean, reliable, affordable energy today and for the future. Source: 5

6 CHP Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs 94 units 56 units Fuel Fuel Power Plant 32% efficiency (Including T&D) Onsite Boiler 80% efficiency 30 units Electricity Heat CHP 75% efficiency Fuel 100 units 45 units Total Efficiency ~ 50% Total Efficiency ~ 75% 30 to 55% less greenhouse gas emissions 6

7 What Are the Benefits of CHP? CHP is more efficient than separate generation of electricity and heat Higher efficiency translates to lower operating cost, (but requires capital investment) Higher efficiency reduces emissions of all pollutants CHP can also increase energy reliability and enhance power quality On site electric generation reduces grid congestion and avoids distribution costs 7

8 Emerging Drivers for CHP o Benefits of CHP recognized by policymakers DOE / EPA CHP Report (8/2012) o President Obama signed an Executive Order to accelerate investments in industrial EE and CHP on 8/30/12 that sets national goal of 40 GW of new CHP installation over the next decade 8 o State Portfolio Standards (RPS, EEPS, Tax Incentives, Grants, standby rates, etc.) o Favorable outlook for natural gas supply and price in North America o Opportunities created by environmental drivers o Utilities finding economic value o Energy resiliency and critical infrastructure Executive Order: Report: /chp_clean_energy_solution.pdf

9 CHP Today in the United States 82.7 GW of installed CHP at over 4,400 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 9

10 Critical Infrastructure and Resiliency Benefits of CHP Critical infrastructure refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety. Patriot Act of 2001 Section 1016 (e) Applications: o Hospitals and healthcare centers o Water / wastewater treatment plants o Police, fire, and public safety o Centers of refuge (often schools or universities) o Military/National Security o Food distribution facilities CHP (if properly configured): o Offers the opportunity to improve Critical Infrastructure (CI) resiliency o Can continue to operate, providing uninterrupted supply of electricity and heating/cooling to the host facility o Telecom and data centers 10

11 Resilient University Microgrids in Super-storm Sandy The College of New Jersey (NJ) 5.2 MW CHP Combined heat and power allowed our central plant to operate in island mode without compromising our power supply. Lori Winyard, Director, Energy and Central Facilities at TCNJ Fairfield, University (CT) 4.6 MW CHP 98% of the Town of Fairfield lost power, university only lost power for a brief period at the storm s peak University buildings served as area of refuge for off campus students Stony Brook University (LI, NY) 45 MW CHP < 1 hour power interruption to campus of 24,000 students (7,000 residents) NYU Washington Square Campus (NY, NY) 13.4 MW CHP Princeton University (NJ) 15 MW CHP CHP/district energy plant supplies all heat and hot water and half of the electricity to campus of 12,000 students/faculty "We designed it so the electrical system for the campus could become its own island in an emergency. It cost more to do that. But I'm sure glad we did. Ted Borer, Energy Manager at Princeton University [see Wednesday am Ted Talk] annual campus energy conference/ 11

12 Super Storm Sandy CHP Princeton University, NJ Stony Brook Univ, NY 12 Fairfield, CT Ewing, NJ 12

13 CHP and Critical Infrastructure Critical infrastructure refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety. Patriot Act of 2001 Sec (e) Critical Infrastructure CHP Applications: o Military and national security o Hospitals and healthcare centers o Water and wastewater treatment plants o Police, fire, and public safety o Centers of refuge (often schools or universities) o Food distribution facilities o Telecom and data centers 13

14 Resilient Critical Infrastructure in Super-storm Sandy Danbury Hospital (Danbury, CT) 4.5 MW CHP supplies 371 bed hospital with power and steam to heat buildings, sterilize hospital instruments & produce chilled water for AC $17.5 million investment, 3 4 year payback, cut AC costs 30% Nassau Energy Corp. (Long Island, NY) 57 MW CHP Supplies thermal energy to 530 bed Nassau University Medical Center, Nassau Community College, evacuation center for County No services lost to any major customers during Sandy The Long Island Home (Long Island, NY) 1.3 MW CHP Serves 197 bed South Oaks Hospital and 320 resident Broadlawn Manor Stayed operational and isolated from LIPA grid for 15 days Hartford Hospital/Hartford Steam (CT) 14.9 MW CHP Bergen County Utilities Wastewater (Little Ferry, NJ) 2.8 MW CHP Process sewage for 47 communities) 14

15 Combined Heat and Power: Enabling Resilient Energy Infrastructure for Critical Facilities Read More: Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings Oak Ridge National Laboratory March denergy/pdfs/chp_critical_facilities.pdf DOE and EPA September ons/chp_for_reliability_guidance.pdf 15

16 CHP Project Resources DOE/EPA Catalog of CHP Technologies (updated 2014) Good Primer Report energy.gov/chp 16

17 CHP Project Resources DOE Project Profile Database (150+ case studies) DOE Database of Incentives & Policies (DSIRE) energy.gov/chp-projects 17

18 CHP Project Resources DOE CHP Installation Database (List of all known CHP systems in U.S.) Low-Cost CHP Screening and Other Technical Assistance from the CHP TAP energy.gov/chp-installs energy.gov/chp-contacts 18

19 CHP Technical Assistance Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance, Commissioning Quick screening questions with spreadsheet payback calculator. Uses available site information. Estimates savings, Installation costs, simple paybacks, equipment sizing and type. 3rd Party review of engineering analysis. Review equipment sizing and choices. Review specifications and bids, limited operational analysis. 19

20 Favorable Characteristics for CHP Applications Important Concern about energy costs Concern about power reliability Concern about sustainability and environmental impacts Long hours of operation Concurrent thermal loads or Storage Central heating and cooling distribution system Helpful Future central plant replacement and/or upgrades Future facility expansion or new construction projects EE measures already implemented Access to nearby renewable fuels Facility energy champion 20

21 Screening Questions What makes a good CHP project? Do you pay more than $.06/kWh on average for electricity (including generation, transmission and distribution)? Are you concerned about the impact of current or future energy costs on your business? Are you concerned about power reliability? Is there a substantial financial impact to your business if the power goes out for 1 hour? For 5 minutes? Does your facility operate for more than 6000 hours per year? Do you have thermal loads throughout the year (including steam, hot water, chilled water, hot air, etc.)? 21

22 Screening Questions What makes a good CHP project? Does your facility have an existing central plant? Do you expect to replace, upgrade, or retrofit central plant equipment within the next 3 5 years? Do you anticipate a facility expansion or new construction project within the next 3 5 years? Have you already implemented energy efficiency measures and still have high energy costs? Are you interested in reducing your facility's impact on the environment? Do you have access to on site or nearby biomass resources (i.e. landfill gas, farm manure, food processing waste, etc.? 22

23 DOE TAP CHP Screening Analysis High level assessment to determine if site shows potential for a CHP project Qualitative Analysis Energy Consumption & Costs Estimated Energy Savings & Payback CHP System Sizing Quantitative Analysis Understanding project drivers Understanding site peculiarities 23

24 CHP TAP Feasibility Analysis (Technical and Financial) Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance, Commissioning Feasibility Analysis typically involves: Electrical load profiling (minimum of 12 month prior electric usage hourly/daily) Thermal load profiling(minimum of 12 month prior fuel usage hourly/daily) Thermal use determination (opportunities to use the heat) Unit sizing Installation cost estimations (including available incentives) Financial calculations (simple payback, ROI, etc.) Other CHP system benefits (environmental, resiliency, etc.) 24

25 CHP TAP 3 rd Review: Investment Grade Audit Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance, Commissioning Independent Review of an Engineering Firm s Analysis encompassing: Feasibility Analysis results Design specifications Equipment sizing and selection Facility design for balance of plant (items needed to install CHP but not part of CHP unit e.g. piping, switchgears, pumps, etc.) Utility interconnection studies, if appropriate 25

26 CHP TAP Procurement, O&M and Commissioning Support Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance, Commissioning Services include: Support preparation of an RFP for engineering and CHP equipment Review of specifications and bids Review of O & M procedures Assess as-built to ensure design specifications met and facility operating as expected 26

27 Factors For Successful CHP Development CHP Champion on staff Include CHP in the initial design or master plan Interaction and Relationship with local Utility System design Collaborate with DOE CHP TAPs Experienced project developer preferred Visit DOE CHP Deployment website for project profiles Operation and Maintenance Requires trained personnel or 3rd party with appropriate CHP O&M training 27

28 Proposed Packaged CHP Accelerator Purpose: to increase the penetration of CHP in the commercial building and manufacturing sectors estimated at ~ 85GW of technical potential: Targeted at packaged system requirements of 10 MW or below Designed to reduce perceived risks to both end users and CHP system vendors and speed install time Builds off of the NYSERDA packaged CHP program CHP Accelerator has two primary parts: National electronic Catalog (ecatalog) of approved packaged CHP systems by pre qualified CHP system vendors Market Mover Partners providing market engagement for CHP programs at the state, local and utility level, from outreach efforts to incentive programs 28

29 We invite you to: Next Steps Work with us to perform CHP Qualification Screening/Feasibility Analyses for your facilities Call us with questions on Federal and State policies and incentives for CHP Let us know about CHP projects under development Stay in touch to learn about upcoming events, including site tours, workshops/webinars and publications 29

30 Thank You Beka Kosanovic, NE CHP TAP Co-Director (413) , A program sponsored by Claudia Tighe, CHP Deployment Program Manager , 30