Advances in Central Plants: Combined Heat and Power

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1 Advances in Central Plants: Combined Heat and Power Anna Chittum Visiting Fellow WSSHE September 22, 2016

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

3 Our Energy System Today

4 Energy Flows

5 Burn fuel Power Generation 101 Vent flue gases Cool the water Spin turbine Make steam Boil water Generate and then transmit power

6 A Lot of Wasted Energy

7 Costs of Our Current System Higher emissions Less efficiency More investment in transmission due to losses/lack of efficiency Increased costs of energy due to transmission/distribution constraints Poor resiliency, reliability, power quality

8 Inferior Reliability SAIDI, including exceptional events (Minutes) SAIDI, excluding exceptional events (Minutes) SAIFI, including exceptional events SAIFI, excluding exceptional events Data year City of Eugene OR PacifiCorp OR PacifiCorp WA Idaho Power Co OR Portland General Electric Co OR Puget Sound Energy Inc WA City of Seattle WA US IEEE Denmark Germany Data sources: U.S. EIA, CEER, IEEE

9 Image Source: New York Daily News

10 Combined Heat and Power (CHP)

11 Combined Heat and Power Source: American Council for an Energy-Efficient Economy

12 Image Source: Smithsonian Institution

13 Combined Heat and Power 335 kw GE gas engine Not a single technology Suite of technologies, applied in a certain manner Fundamental idea: don t waste the heat!

14 Combined Heat and Power Capstone 30 kw microturbine Siemens gas turbine 180 MW

15 Uses of Heat from CHP: Process heat needs Sterilization Manufacturing Domestic hot water Residential/hotel Swimming pools Space heating Hydronic/radiators

16 Combined Heat and Power Heat displaces Onsite boilers Furnaces Electric- or gas-powered steam generation units Hot water heaters

17 Why CHP in Hospitals? Continuous and stable energy demands 24/7/365 Sterilization needs Backup power needs Disasters: critical area of services Anchor load for broader community energy resources

18 Benefits of CHP

19 Benefits of CHP Overall energy savings and reduced costs Reduced emissions Reduced risks for utilities Reduced transmission and distribution losses Increased resiliency and reliability Support for greater grid flexibility/re integration

20 Source: Chittum and Farley 2013

21 Efficiency and Emissions Benefits Source: US EPA

22 CHP Today

23 CHP in the U.S. Today 8% of generating capacity (85 GW) 12% of production, on per kwh basis Obama Executive Order: 40 GW goal by 2020 Existing CHP database:

24 CHP in the U.S. Today

25 CHP in the U.S. Today >4,400 CHP Sites (2014) Saves 1.8 quads of fuel each year Avoids 241 M metric tons of CO 2 each year Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2014)

26 CHP in Hospitals Today: over 200 hospitals in the U.S. use CHP for heating, cooling, and power needs Potential: earn revenue for offering other kinds of services that will be increasingly needed in Pacific Northwest

27 Costs and Performance Installed Cost ($/kw) Total Efficiency Typical Sizes Gas Turbines $1,000-$3, % 2-50MW Reciprocating Engines $1,400 - $3, % 100kW 9MW Microturbines $1,700-$2, % 30kW 1MW Data source:

28 Relationship to Electric Utility Interconnection agreement WA: tiered, fast-track under 300 kw Buy backup and standby power from your electric utility Optional: ability to island, black start Washington: PURPA QF in place, low avoided costs

29 Potential Financial Arrangements Fully own Lease arrangement Long-term PPA/energy services contract years or more Typically, energy savings reinvested into conservation or other facility improvements

30 Case Studies

31 LOTT Clean Water Alliance, WA 335 kw reciprocating engine Anaerobic digestion, gas fuels engine Total project cost: $2.48 million Savings of $150,000/year in energy costs

32 NY Presbyterian Hospital, NY o 7.5 MW gas turbine o Sited near stressed substation o Existing boiler location o $31 million project o $5-6 million saved/yr o Fully island-able o 2,400 beds o 10% more fuel, 80% less electricity Source:

33 Dell Children s Hospital, TX 4.3 MW gas turbine $18 million construction costs Owned by Austin Energy Excess power: to grid 30 year contract for energy products Image Source:

34 Gunderson Health System, WI $2 million/yr saved in efficiency alone 1.1 MW reciprocating engine Gas from nearby landfill 12 year expected payback

35 Montefiore Medical Center, NY 5 MW gas turbine $10 million project Saves $2-3 million a year in energy Accepted 27 patients from other hospitals during Sandy 6 from NYU NICU

36 Princeton University, NJ 15 MW gas turbine 422,000 lbs/hr heating 180 buildings Saves $3-5 million/year Place of refuge during Sandy Integrates 5MW solar PV Chilled water storage

37 Princeton University, NJ Source:

38

39 Where Are the Opportunities?

40 CHP in Washington Washington: 35 CHP sites Total CHP: 1.1 GW installed (about same as Rocky Reach); ODOE/WSU: 6 GW potential regionwide

41 CHP in Washington Source: U.S. DOE Analysis Combined Heat and Power Technical Potential March

42 Washington State All Commercial CHP Technical Potential Topping Cycle, Waste Heat to Power, and District Energy kw MW 1-5 MW 5-20 MW > 20 MW Total SIC Business Type Sites MW Sites MW Sites MW Sites MW Sites MW Total Sites Total MW 4222 Refrigerated Warehouses Airports Water Treatment Food Stores Restaurants Commercial Office Buildings 1, , Multifamily Buildings Hotels Laundries Data Centers Car Washes Movie Theaters Health Clubs Golf/Country Clubs Nursing Homes Hospitals Schools College/Univ Museums Government Buildings Prisons Military Total 3, ,612 1,220 Source: U.S. DOE Analysis Combined Heat and Power Technical Potential March

43 Considerations o Is there a use for the CHP waste/recycled heat? o Is there a major rehab or thermal equipment change planned? o Is there sufficient spark spread? o Identify size and type prime mover to meet thermal requirements (high efficiency). o Will the selected configuration provide adequate waste heat levels for heating and/or cooling? o Are there potential installation issues estimate installation costs? o What do basic economics look like? Is the application worth pursuing with a formal analysis?

44 Resiliency Considerations Diesel backup generators Fuel storage/maintenance issues When not running: does not contribute to hospital s profit What do you do when you run out of fuel? Recent decision from City of Portland: need not have diesel as backup for critical facilities if you have natural gas

45 A Feasibility Analysis Typically Involves: Screening and Preliminary Analysis Feasibility Analysis Investment Grade Analysis Procurement, Operations, Maintenance o o o o o o o Electrical load profiling Thermal load profiling Unit sizing Thermal use determination (what to do with the heat) Installation cost estimations Financial calculations (simple payback, ROI, etc.) Cost/savings information compared to what your facility would pay if the CHP system were not installed

46

47 Opportunities in Washington Washington: above-average ranking in CHP policies High efficiency CHP qualifies as conservation Biomass CHP qualifies as renewable 2015: legislature passed H.B

48 Beyond the Fence

49 District Heating/Cooling Source: International District Energy Assoc

50 District Heating

51 Microgrids Many definitions Can island from larger grid Can support connected loads for multiple days Can integrate CHP + solar + storage + load shedding Military bases leading microgrid development

52 Read More! Installed CHP in Washington: CHP Technology Catalog: CHP Potential (DOE Analysis): Technical%20Potential%20Study% %20Final.pdf

53 Read More! U.S. Department of Energy guidebook for CHP in hospitals: al_guidebook.pdf U.S. Environmental Protection Agency s CHP Partnership:

54 Thank you! Anna Chittum Visiting Fellow Portland, OR Join us for the 2017 ACEEE Summer Study on Energy Efficiency in Industry Denver Marriott City Center Denver, CO August 15-18,

55 Extra Slides

56 Prime Mover: Reciprocating Engines o Size range: 10 kw to 18 MW o Characteristics: o Thermal can produce hot water, lowpressure steam, and chilled water (through absorption chiller) o High part-load operation efficiency o Fast start-up o Minimal auxiliary power requirements for black start Example applications: Food Processing, Office Buildings, Multifamily Housing, Nursing Homes, Hospitals, Schools, Universities, Wastewater Treatment, Correctional Facilities Source: DOE/EPA Catalog of CHP Technologies

57 Prime Mover: Gas Turbine o Size range: 500 kw to 300 MW o Characteristics: o Produces high-quality, hightemperature thermal that can include high-pressure steam for industrial processes; and chilled water (with absorption chiller) o Efficiency at part load can be substantially less than at full load Example applications: Hospitals, universities, chemical plants, refineries, food processing, paper manufacturing, military bases Source: DOE/EPA Catalog of CHP Technologies

58 Prime Mover: Microturbines o Size range: 30 kw to 1,000 kw o Characteristics: o Thermal can produce hot water, steam, and chilled water o Compact size and light weight, brought on line quickly o Inverter-based generation can improve power quality o Usually below 200 kw unless multiple units utilized o Example applications: Multifamily housing, hotels, nursing homes, wastewater treatment, gas and oil production Source: DOE/EPA Catalog of CHP Technologies

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