Advances in Central Plants: Combined Heat and...

Advances in Central Plants:

Combined Heat and Power

Anna Chittum Visiting Fellow

WSSHE

September 22, 2016

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%)

www.aceee.org

Our Energy System

Today

Energy Flows

Power Generation 101

Burn fuel

Boil water

Make steam

Spin turbine

Generate and

then transmit

power

Vent flue gases Cool the water

A Lot of Wasted Energy

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

Inferior Reliability

SAIDI, including exceptional events

SAIDI, excluding exceptional events

SAIFI, including exceptional events

SAIFI, excluding exceptional events

Data year

(Minutes) (Minutes)

City of Eugene OR 336.90 59.39 0.67 0.41 2014

PacifiCorp OR 259.45 132.44 1.62 1.19 2014

PacifiCorp WA 148.57 124.59 0.87 0.81 2014

Idaho Power Co OR 205.90 203.26 1.63 1.59 2014

Portland General Electric Co OR 245.00 93.00 1.20 0.69 2014

Puget Sound Energy Inc WA 540.00 153.00 1.84 0.96 2014

City of Seattle WA 147.60 69.10 1.48 0.89 2014

US – IEEE 30 143.00 1.29 2011

Denmark 15.86 11.25 0.37 0.32 2013

Germany 32.75 15.32 0.50 0.47 2013 Data sources: U.S. EIA, CEER, IEEE

Image Source: New York Daily News

Combined Heat and

Power (CHP)

Combined Heat and Power

Source: American Council for an

Energy-Efficient Economy

Image Source: Smithsonian Institution

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!

Combined Heat and Power

Capstone 30 kW

microturbine

Siemens gas turbine – 180 MW

Uses of Heat from CHP:

• Process heat needs

• Sterilization

• Manufacturing

• Domestic hot water

• Residential/hotel

• Swimming pools

• Space heating

• Hydronic/radiators

Combined Heat and Power

Heat displaces…

• Onsite boilers

• Furnaces

• Electric- or gas-powered steam generation

units

• Hot water heaters

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

Benefits of CHP

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

Source: Chittum and Farley 2013

Efficiency and Emissions Benefits

Source: US EPA

CHP Today

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:

https://doe.icfwebservices.com/chpdb/

CHP in the U.S. Today

http://energyoutlook.naseo.org/Data/Sites/6/media/presentations/Hedman.pdf#

>4,400 CHP Sites

(2014)

Saves 1.8 quads of

fuel each year

Avoids 241 M metric

tons of CO2 each year

Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2014)

CHP in the U.S. Today

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

Costs and Performance

Installed Cost

($/kW)

Total Efficiency Typical Sizes

Gas Turbines $1,000-$3,000 65-70% 2-50MW

Reciprocating

Engines

$1,400 - $3,000 76-80% 100kW – 9MW

Microturbines $1,700-$2,700 69-78% 30kW – 1MW

Data source: https://www.epa.gov/chp/chp-technologies

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

Potential Financial Arrangements

• Fully own

• Lease arrangement

• Long-term PPA/energy services contract

• 10-20 years or more

• Typically, energy savings reinvested into

conservation or other facility

improvements

Case Studies

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

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: https://www.nyserda.ny.gov/-/media/Files/EERP/Combined-Heat-

and-Power/2012-CHP-Conference/2012-CHP-Grube-Presentation.pdf#

Dell Children’s Hospital, TX

Image Source:

http://apps1.eere.energy.gov/buildings/publications/pdfs/alliances/hea_dell_business_case.pdf#

4.3 MW gas turbine

$18 million construction

costs

Owned by Austin Energy

Excess power: to grid

30 year contract for energy

products

Gunderson Health System, WI

• $2 million/yr saved in

efficiency alone

• 1.1 MW reciprocating

engine

• Gas from nearby landfill

• 12 year expected

payback

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

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

Princeton University, NJ

Source: https://tiger-energy.appspot.com/home

Where Are the

Opportunities?

CHP in Washington

• Washington: 35 CHP sites

• Total CHP: 1.1 GW installed (about

same as Rocky Reach);

• ODOE/WSU: 6 GW potential region-

wide

CHP in Washington

Source: U.S. DOE Analysis Combined Heat and Power Technical

Potential March 2016. http://bit.ly/1qF0pce

50-500 kW 0.5 - 1 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 30 4 2 1 0 0 0 0 0 0 32 6

4581 Airports 2 1 1 1 0 0 1 10 0 0 4 12

4952 Water Treatment 35 4 1 1 1 1 0 0 0 0 37 6

5411 Food Stores 378 54 0 0 1 1 0 0 0 0 379 55

5812 Restaurants 302 28 0 0 1 2 0 0 0 0 303 30

6512

Commercial Office

Buildings 1,265 63 389 156 97 58 0 0 0 0 1,751 277

6513 Multifamily Buildings 293 22 106 53 16 16 0 0 0 0 415 91

7011 Hotels 283 35 17 10 17 25 0 0 0 0 317 70

7211 Laundries 21 4 0 0 1 1 0 0 0 0 22 5

7374 Data Centers 62 10 3 2 3 4 0 0 0 0 68 15

7542 Car Washes 24 2 0 0 0 0 0 0 0 0 24 2

7832 Movie Theaters 0 0 0 0 0 0 0 0 0 0 0 0

7991 Health Clubs 85 9 0 0 1 1 0 0 0 0 86 11

7997 Golf/Country Clubs 76 9 0 0 0 0 0 0 0 0 76 9

8051 Nursing Homes 197 23 0 0 0 0 0 0 0 0 197 23

8062 Hospitals 57 13 15 10 32 70 1 6 0 0 105 99

8211 Schools 0 0 0 0 0 0 0 0 0 0 0 0

8221 College/Univ. 40 7 3 2 45 117 6 74 1 26 95 227

8412 Museums 21 3 0 0 0 0 0 0 0 0 21 3

9100 Government Buildings 200 31 25 17 23 43 2 15 0 0 250 107

9223 Prisons 11 2 2 2 7 15 0 0 0 0 20 19

9711 Military 17 3 1 1 8 20 3 20 1 40 30 84

Total 3,759 379 581 265 257 384 13 126 2 66 4,612 1,220

Source: U.S. DOE Analysis Combined Heat

and Power Technical Potential March 2016.

http://bit.ly/1qF0pce

Washington State All Commercial CHP Technical Potential –

Topping Cycle, Waste Heat to Power, and District Energy

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?

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).

Is the application worth pursuing with a formal analysis?

Considerations

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

A Feasibility Analysis Typically Involves:

o Electrical load profiling

o Thermal load profiling

o Unit sizing

o Thermal use determination (what to do with the heat)

o Installation cost estimations

o Financial calculations (simple payback, ROI, etc.)

o Cost/savings information compared to what your facility would pay if the CHP system were not installed

Screening and

Preliminary Analysis

Feasibility Analysis

Investment Grade

Analysis

Procurement, Operations,

Maintenance

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. 1095 • http://lawfilesext.leg.wa.gov/biennium/2015-

16/Pdf/Bills/Session%20Laws/House/1095-S2.SL.pdf

Beyond the Fence

District Heating/Cooling

Source: International District Energy Association

District Heating

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

Read More!

• Installed CHP in Washington:

https://doe.icfwebservices.com/chpdb/state/WA

• CHP Technology Catalog:

https://www.epa.gov/chp/chp-technologies

• CHP Potential (DOE Analysis):

http://energy.gov/sites/prod/files/2016/04/f30/CHP%20

Technical%20Potential%20Study%203-31-

2016%20Final.pdf

Read More!

• U.S. Department of Energy guidebook for CHP in

hospitals:

https://www.wbdg.org/ccb/VA/VASUSTAIN/chp_hospit

al_guidebook.pdf

• U.S. Environmental Protection Agency’s CHP

Partnership: https://www.epa.gov/chp

Thank you!

Anna Chittum

Visiting Fellow

Portland, OR

503-232-0902

achittum@aceee.org

Join us for the 2017 ACEEE Summer Study on Energy Efficiency in Industry

Denver Marriott City Center

Denver, CO

August 15-18, 2017

http://aceee.org/conferences/2017/ssi

Extra Slides

o Size range: 10 kW to 18 MW

o Characteristics: o Thermal can produce hot water, low-

pressure 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

Prime Mover: Reciprocating Engines

Source: DOE/EPA Catalog of CHP Technologies

o Size range: 500 kW to 300 MW

o Characteristics: o Produces high-quality, high-

temperature 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

Prime Mover: Gas Turbine

Source: DOE/EPA Catalog of CHP Technologies

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

Prime Mover: Microturbines

Source: DOE/EPA Catalog of CHP

Technologies