A FUTURE WITH DISTRICT ENERGY: How to Make it Work

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1 A FUTURE WITH DISTRICT ENERGY: How to Make it Work ANDERS RYDAKER Executive VP, Sustainable Energy Solutions Ever-Green Energy, LLC Twitter hashtag: #ps10

2 OUTLINE British Columbia Targets for Conservation and GHG Reduction How Can District Energy Help? District Energy St. Paul s Success Story

3 BRITISH COLUMBIA TARGETS FOR CONSERVATION 66% of new electricity demand has to be achieved by conservation GHG reduction 30% by 2016

4 WHAT IS DISTRICT ENERGY?

5 THE CHANGING SYSTEM CHALLENGES OPPORTUNITIES Isolated Energy Production Fossil Fuel Use Carbon/GHG Emissions Energy Losses Conservation & Efficiency Expanding Renewables System Integration Economic Incentives

6 INTEGRATED COMMUNITY ENERGY SYSTEM

7 BENEFITS OF INTEGRATED ENERGY SYSTEMS Increase energy efficiency, reduce primary energy consumption and associated GHG emissions Enable beneficial use of surplus thermal energy from dispersed sources Ease transition to use of renewable energy Enables energy storage and smoothing of energy peaks Achieve significant energy conservation and GHG emissions reductions using currently available technology

8 THERMAL STORAGE

9 SOLAR THERMAL INTEGRATION 2010: Design & Installation of the Midwest s Largest Solar System

10 INTEGRATE A DIVERSITY OF RENEWABLE SOURCES

11 INTEGRATED SOLUTIONS: SWEDEN 100% Energy Input for District Heating (Sweden) 80% 60% 40% Waste Heat Heat Pumps Electric Boilers Biomass Coal Natural Gas Oil 20% 0%

12 DISTRICT ENERGY ST. PAUL MISSION Be the preferred provider of community energy services that benefit our customers, the community and the environment.

13 CITY OF SAINT PAUL

14 HEATING & COOLING SAINT PAUL

15 COMPANY STRUCTURE Renewable Energy Innovations St. Paul Cogeneration Environmental Wood Supply

16 BROAD CUSTOMER BASE 31.7 Million Sq Ft 187 Customers Residential* 19.3 Million Sq Ft 98 Customers

17 DISTRICT ENERGY RESULTS TODAY Serves more than 80 percent of the downtown area - over 31 million sq. ft. Eliminated more than 150 smokestacks Reduced sulfur dioxide and particulate emissions by more than 60 percent Twenty-seven years of outstanding reliability and rate stability

18 DISTRICT ENERGY FY-10 CUSTOMER RATES Combined Rate Summary, FY-1998 to 2010 $0.080 $ Per kwh $0.060 $0.040 $0.020 $ Demand Charges Fiscal Energy Year Charges

19 DISTRICT COOLING ST. PAUL

20 DISTRICT COOLING RESULTS TODAY Chilled-water demand started at 2,900 tons and has increased to 29,000 tons Serving more than 60% of the downtown area approximately 19 million sq. ft. Chilled water system includes 6.5 million gallons of storage capacity Thermal storage reduced peak-electric demand by as much as 9,000 kilowatts

21 DISTRICT COOLING FY-10 CUSTOMER RATES Combined Rate Summary, FY-1998 to 2010 $0.40 $ Per Ton-Hour at 1200 Utilization Hours $0.30 $0.20 $0.10 $ Fiscal Year Demand Charges Energy Charges

22 BIOMASS-FIRED CHP Saint Paul uses up to 300,000 tons per year of clean, renewable, urban wood residue.

23 ST. PAUL COGENERATION 25 MW of electricity Renewable, clean, urban wood residue Double the efficiency of conventional electricityonly power plants Greenhouse gas CO reduced by 280,000 tons Greenhouse gas CO 2 reduced by 280,000 tons per year

24 FUEL DIVERSIFICATION: BEFORE & AFTER CHP

25 CUSTOMER & PLANT ENERGY 60,000 50,000 40,000 30,000 20,000 10, BTU per sq ft CONSERVATION Switching Saint Paul from steam to hot water in 1983, decreased energy consumption >20% Additional reduction of 29% from 1988 to 2008 Combined customer and plant improvements >50% savings

26 2010 CUSTOMER SURVEY: IMPORTANCE OF RENEWABLE FUELS USAGE 2% Very Importa nt 22% Somewhat Important Not Importa nt 76%

27 2010 CUSTOMER SURVEY: RENEWABLE ENERGY RATE OPTION 5% Yes 48% 47% Maybe, but it depends on many factors Not Interested

28 IMMEDIATE INTEGRATION OPPORTUNITY: INTEGRATED ENERGY CORRIDOR District Energy St. Paul Integrated Energy Corridor Opportunity Rock-Tenn Recycling Biomass Fired CHP Plant

29 CONCLUSION Achieving long-term efficiency and GHG reduction goals requires an integrated energy strategy District energy is an excellent tool in the toolbox to attain the goal

30 THANK YOU! ANDERS RYDAKER Twitter hashtag: #ps10