Taking Advantage of Combined Heat and Power (CHP)

Transcription

1 Taking Advantage f Cmbined Heat and Pwer (CHP) State Energy Efficiency Plicy Retreat Missuri August 19 th, 2014 Presented by: Jhn Cuttica Energy Resurces Center University f Illinis at Chicag

2 What technlgy can Increase verall energy efficiency and reduce utility bill expenditures? Reduce carbn emissins? Increase energy reliability, decrease reliance n the grid, and supprt grid T&D? Shw mre energy savings and reduce mre emissins than cmparably sized PV and wind technlgies? Supprt natin s energy gals and is cmmercially available tday? The Answer? CHP

3 Presentatin Outline Overview f Cmbined Heat and Pwer (CHP) CHP Market and Market Drivers Market Ptential Financing CHP 3

4 Fuel Utilizatin by U.S. Utility Sectr Surce: 4

5 Cnventinal Energy System 100 units fuel input 100 units fuel input Central Statin Furnace / Biler 67 units thermal rejected / lst 20 units thermal rejected / lst 33 units electric 80 units thermal Custmer purchases pwer frm grid (central statin) Pwer plant ecnmy f scale 100 units input = 33 units f pwer Remainder f energy lst (heat) On-site generatin f steam/ht water (bilers/furnaces) 100 units input = 60 t 80 units f heat Typical grid pwer + nsite heat Efficiency depends n heat/pwer rati 45% t 55% cmbined efficiency is cmmn

6 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Cnventinal CHP (als referred t as Tpping Cycle CHP r Direct Fired CHP) Separate Energy Delivery: Electric generatin 33% Thermal generatin - 80% Cmbined efficiency 45% t 55% CHP Energy Efficiency (cmbined heat and pwer) 70% t 85%

7 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Cnventinal CHP (als referred t as Tpping Cycle CHP r Direct Fired CHP) Simultaneus generatin f heat and electricity Fuel is cmbusted/burned fr the purpse f generating heat and electricity Nrmally sized fr thermal lad t max. efficiency 70% t >85% Minimum efficiency f 60% nrmally required Nrmally nn exprt f electricity Lw emissins natural gas

8 CHP Recaptures Much f that Heat, Increasing Overall Efficiency f Energy Services 75 units 150 units 94 units 56 units Fuel Fuel Pwer Plant 32% efficiency (Including T&D) Onsite Biler 80% efficiency 30 units Electricity Heat CHP 75% efficiency Fuel 100 units 100 units 45 units Ttal Efficiency ~ 50% Ttal Efficiency ~ 75%

9 Surce: L_Reprt_Dec2008.pdf CHP Rle in Our Envirnmental Future Impact n Carbn Emissins Example f the CO 2 savings ptential f CHP based n a 5 MW gas turbine CHP system with 75% verall efficiency perating at 8,500 hurs per year prviding steam and pwer n-site cmpared t separate heat and pwer cmprised f an 80% efficient n-site natural gas biler and average fssil based electricity generatin with 7% T&D lsses.

10 Defining Cmbined Heat & Pwer (CHP) The n-site simultaneus generatin f tw frms f energy (heat and electricity) frm a single fuel/energy surce Waste Heat t Pwer CHP (als referred t as Bttming Cycle CHP r Indirect Fired CHP) Fuel Steam Turbine Heat recvery steam biler Energy Intensive Industrial Prcess Electricity Heat Waste heat frm the industrial prcess Heat prduced fr the industrial prcess Fuel first applied t prduce useful thermal energy fr the prcess Waste heat is utilized t prduce electricity and pssibly additinal thermal energy fr the prcess Simultaneus generatin f heat and electricity N additinal fssil fuel cmbustin (n incremental emissins) Nrmally prduces larger amunts electric generatin (ften exprts electricity t the grid; base lad electric pwer)

11 Industrial Waste Heat Recvery Opprtunities 800ºF + = High Temp

12 Attractive CHP Markets Industrial Chemical manufacturing Ethanl Fd prcessing Natural gas pipelines Petrchemicals Pharmaceuticals Pulp and paper Refining Rubber and plastics Cmmercial Data centers Htels and casins Multi-family husing Laundries Apartments Office buildings Refrigerated warehuses Restaurants Supermarkets Green buildings Institutinal Hspitals Landfills Universities & clleges Wastewater treatment Residential cnfinement Agricultural Cncentrated animal feeding peratins Dairies Wd waste (bimass)??what are the attractive markets in Missuri??

13 What Are the Benefits f CHP? CHP is mre efficient than separate generatin f electricity and heat Higher efficiency translates t lwer perating cst, (but requires capital investment) Higher efficiency reduces emissins f all pllutants CHP can als increase energy reliability and enhance pwer quality On-site electric generatin reduces grid cngestin and avids distributin csts

14 Status f Technlgy Adptin 4,200 CHP Sites (2012) 82,400 MW installed capacity Saves 1.8 quads f fuel each year Avids 241 M metric tns f CO 2 each year 87% f capacity industrial 70% f capacity natural gas fired CHP represents 7% f US generating capacity. Surce: ICF Internatinal

15 Capacity (MW) Market Drivers Benefits recgnized by plicymakers at the federal and state levels Favrable utlk fr natural gas supply in Nrth America enhances ecnmics Opprtunities created by envirnmental pressures n the pwer sectr and industrial/institutinal users Grwing interest in pwer reliability and critical infrastructure supprt Presidential rder (2012) established a natinal gal f 40 GW f new, cst effective CHP installatins by ,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Over 4,500 MW annunced/under cnstructin

16 Technical Ptential f 140,000 MW Existing CHP vs Technical Ptential Ptential CHP Existing CHP Surce: ICF Internatinal

17 Electric Generating Capacity versus Existing CHP Generating Capacity State Status Ttal State Electric Generatin 1 (MW) CHP Generating Capacity 2 (MW) CHP as % f Ttal Elec Generatin (MW) Illinis Deregulated 50,092 1, % Iwa Regulated 15, % Indiana Regulated 30,928 2, % Kansas Regulated 13, % Michigan Deregulated 32,992 3, % Minnesta Regulated 16, % Missuri Regulated 23, % Nebraska Regulated 8, % Nrth Dakta Regulated 6, % Ohi Deregulated 36, % Suth Dakta Regulated 3, % Wiscnsin Regulated 19,050 1, %

18 Generatin Capacity (MW) Existing CHP Generatin Capacity 1 versus Technical Ptential 2 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 IL IA IN KS MI MN MO NE ND OH SD WI Existing Generatin Capacity Technical Ptential ICF Internatinal

19 CHP Generating Capacity (GW) CHP Generating Capacity Installed vs Ttal Technical Ptential 250, , ,000 MW 150, ,000 82,000 MW 50, ,000 MW 10,800 MW Midwest Installed Tech Ptential U.S. * Technical Ptential als includes existing CHP

20 ??Ecnmic Ptential?? What Defines Ecnmic Ptential 2 year paybacks, 4 year paybacks, 8 year paybacks?? Financial analysis can t be dne with average utility rates. Average site data is unacceptable (perating hurs, cst f system, level f heat recvery, etc) Hw d yu accunt fr such benefits as reliability, pwer quality, resiliency, envirnment, etc The ecnmic ptential lies smewhere between the tw bars * Technical Ptential als includes existing CHP

21 What s Stpping Us frm Getting There? Technlgy.. Minimal Barriers & Slutins: R&D fcus shuld be n reducing first cst Financial Mderate (Reginal Specific) Expensive, cmpetes with ther capital investments Spark Spreads payback and cash flw Financing gd prjects - becming mre available Plicy.Substantial (State Specific)

22 Financing CHP Larger initial csts Lnger simple payback perids Cmpete fr capital with mre familiar business related pprtunities Lw capital budgets fr investments Unwilling t brrw, dn t want t see mre debt n balance sheet 22

23 Financing Optins (private sectr) Third party wnership (ESA): CHP develper wns & perates the system Custmer treats as an ff-balance sheet expense Custmer has n direct wnership r cntrl ver the equipment during cntract perid Custmer n up-frnt capital t implement a prject Leasing Financial lease appears as leased asset n balance sheet rather than debt Operating lease custmer perates system but des nt claim wnership, appears as perating expense. 23

24 Financing Optins (public sectr) Revlving lan funds Grant/rebate prgrams Lan guarantees State bnds PACE financing 24

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26 CHP TAP Technical Develpment Assistance Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Prcurement, Operatins, Maintenance, Cmmissining Quick screening questins with spreadsheet payback calculatr. Uses available site infrmatin. Estimate: savings, Installatin csts, simple paybacks, equipment sizing and type. 3 rd Party review f Engineering Analysis. Review equipment sizing and chices. Review specificatins and bids, Limited peratinal analysis

27 Summary Slide Gd state plicy is a must fr extensive CHP installatin main subject f this retreat Dn t frget: Identifying gd applicatins in Missuri (industrial, cmmercial, and institutinal) Identifying gd financing ptins 27

28 Thank Yu fr Yur Attentin Cntact Infrmatin: Jhn Cuttica 312/