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Copyright © 2013 Diesel Technology Forum Keeping the Lights On and Critical Services Functioning: Technical Options and Policy Solutions for Maintaining Continuous Electrical Power During Loss of Grid Power Welcome to our Webinar September 18, 2014

Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

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Page 1: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Keeping the Lights On and Critical Services

Functioning:

Technical Options and Policy Solutions for Maintaining

Continuous Electrical Power During Loss of Grid

Power

Welcome to our Webinar

September 18, 2014

Page 2: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

About the Diesel Technology Forum

Education

Outreach

Research

Collaboration

Clean Diesel

EnergyEfficiencyEmissions

EnvironmentEconomics

ApplicationsUses

Legacy Products

Page 3: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

DTF members are leaders in clean diesel technology

– AGCO

– BorgWarner

– Bosch

– Caterpillar Inc.

– Chrysler Group

– CNH Industrial

– Cummins Inc.

– Daimler

– Deere & Company

– Delphi Automotive

– Ford Motor Company

– General Motors

– Honeywell

– Isuzu Manufacturing

Services of America

– Johnson Matthey

– Mazda North American Operations

– Umicore

– Volvo Group

– Volkswagen of America

– MTU

– Yanmar America

Allied Members– Association of Diesel

Specialists

– National Biodiesel Board

– Western States Petroleum Association

Page 4: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Your Speakers

• Moderator: Allen Schaeffer, Diesel Technology Forum

• Jason Kitchel, Caterpillar

• Ezra Finkin, Diesel Technology Forum

• Mike Jones, Maryland Energy Administration

Page 5: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Today’s Program

• Electricity & Grid Supply Outages – Causes, history and impacts of grid power outages

• Introduction to Back-up power options

– Fuel and technology choices

• Technologies offered in Emergency Standby

Applications

• Review of State Initiatives for Encouraging

Emergency Back up Power Capabilities

• Maryland Energy Administration – Fuel Up Program

• Questions

• Concluding remarks

• Future Programming

– Demand Response

Page 6: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Cause of Large Electrical Blackouts in the U.S. 2008

Event % Events Mean Size in MW Mean Size in Customers

Earthquake 0.8 1,408 375,900

Tornado 2.8 367 115,439

Hurricane Trop. Storm 4.2 1,309 782,695

Ice Storm 5 1,152 343,448

Lightning 11.3 270 70,944

Wind/Rain 14.8 793 185,199

Other Cold weather 5.5 542 150,255

Fire 5.2 431 111,244

Intentional attack 1.6 340 24,572

Supply Shortage 5.3 341 138,957

Other External cause 4.8 710 246,071

Equipment Failure 29.7 379 57,140

Operator Error 10.1 489 105,322

Voltage Reduction 7.7 153 212,900

Volunteer reduction 5.9 190 134,543

Page 7: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Vulnerability of the Nation’s Electrical Grid is Increasingly Documented

March 12, 2014:

The U.S. could

suffer a coast-to-

coast blackout if

saboteurs knocked

out just nine of the

country's 55,000

electric-transmission

substations on a

scorching summer

day, according to a

previously

unreported federal

analysis.

http://online.wsj.com/news/articles/SB100014240527023040201

04579433670284061220?mg=reno64-wsj

Page 8: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Frequency and Impact of Electrical Outages is

Growing

Year Total number of outages People affected

2008* 2,169 25.8 million

2009 2,840 13.5 million

2010 3,129 17.5 million

2011 3,071 41.8 million

2012 2,808 25 million

2013 3,236 14 million

58 % Increase

over 5 years

Page 9: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Consequences of Blackouts

Bla

cko

ut

Interruptions in manufacturing process; Waste

Transportation Networks Function; Traffic

Loss of data, network connectivity; downtime

Refrigeration

Food Spoilage; Waste

Loss of Communications

Banking Networks; Funds Availability

Economic Losses

Public Health and Safety

Threats

Page 10: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Economic Impacts of Loss of Electrical Power

Total $80 Billion Annually

Economic Loss

Residential

Commercial

industrial

$12,500

Median Loss per day to

small businesses for

shutdown due to power

outage

Sources: Lawrence Berkeley Lab, Symantec Corporation

Page 11: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

August 14, 2003 NE Blackout

• More than 50 million people, loss of 61,800 MW in power

• 8 States and 1 Canadian Province Impacted

• 30 hours to restore

• Manufacturing disrupted

• 531 generators tripped

• 19 nuclear generators at 10 plants

• Cost: $7 and $10 billion

Page 12: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Impacts from the 2003 Blackout

• Chrysler - lost production at 14 of 31 plants; 6 were assembly plants with paint shops. In total 10,000 vehicles had to be scrapped.

• Nova Chemicals - plant outages impacted 5 facilities, disrupting processing; reduced earnings in third quarter by $10M.

• Duane Reade, Inc. NY Drugstore- 237 stores closed -sales loss totaled $3.3M

• Airports - 1,000 Flight Cancellations (Toronto, Newark, New York, Detroit, Cleveland, Montreal, Ottawa, Islip, Syracuse, Buffalo, Rochester, Erie and Hamilton)

• NYC - Comptroller – Losses exceed $1B – including $800M gross city product

Page 13: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Page 14: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Copyright © 2013 Diesel Technology Forum

Diesel’s Role In Superstorm Sandy Recovery

Diesel: The Lifeblood of the Recovery Effort (Data Center Knowledge, October 31, 2012)

“Much of the Internet is currently running on diesel fuel and priority service contracts. Emergency backup generators powered by diesel are helping many East Coast data center providers weather Superstorm Sandy.

The importance of diesel in the post-Sandy economy is hard to overstate. In the wake of Sandy, diesel is the lifeblood of lower Manhattan, where

generators are currently providing virtually all the area’s electricity.

New Jersey gets diesel waiver to avoid shortfall after Sandy (Reuters, October 31, 2012)

The Environmental Protection Agency on Wednesday granted New Jersey a temporary waiver on Ultra Low Sulfur Diesel (ULSD) requirements to help counter a shortfall in fuel supplies in parts of the state following Hurricane Sandy.

The EPA determined that an "extreme and unusual fuel supply circumstance“ that would limit supplies of ULSD that can be used in mobile nonroad generators

and pumps used for emergencies.

Page 15: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

www.dieselforum.org

What are the Technology Options for

Backup Electrical Power?

Page 16: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Technology Choices for Emergency Backup Power

Stored Energy Systems

Solar with storage,

Flywheels

Uninterruptible Power Supplies (UPS)

Battery Based

Turbines

Combined heat and power

Fuel Cell Systems

Generator Sets (Internal combustion engine + electrical power generator + electrical controls/switchgear)

• Diesel

• Gasoline

• Natural Gas

• Propane

Page 17: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Electrical generators come in many shapes and sizes can be stationary or portable and use different fuels

Homeowners

Portable -- Typically Gasoline

Stationary -- Natural Gas or Propane

Contractor, light-industrial

Typically portable job-site,

short-term use

(Diesel)/gasoline

Business

Mobile, Stationary –

Diesel, Natural Gas, Propane

Page 18: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

What are the types of Electrical Power Generators?

Gen Set Application Purpose

Stationary Emergency Emergency power for buildings, data centers, cell towers, manufacturing. (Can include <100 hrs. demand response use. Includes testing hrs.)

Nonroad Mobile –Emergency

Rental power, portables owned by utilities, municipalities, contractors

Peaking Municipalities, utilities, manufacturing owned power source. Turned on when grid power price is high.

Demand Response Utility or industry owned power production for a facility or feed to the grid based on grid operator request.

Combined Heat and Power Hospitals, industry providing facility heat and electricity on a continuous basis

Continuous or Prime Asphalt Plants, Rock Crushers, island power

TodaysFocus

Page 19: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

BATTERIES

ADVANTAGES

• Scalable for specific use

• Easy replacement and maintenance costs

• Assists in temporary or short power outage durations

DISADVANTAGES

• Increased maintenance and

“down time”

• Not suitable for lengthy power

outages lasting more than 60

seconds

Page 20: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Technology Choices for Generator Sets

• Rapid Response - For use in 10-second start

conditions:Liquid Fuels: Gasoline & DieselGaseous Fuels: Natural Gas & Propane

• Portable MarketGasoline: smaller output with limited commercial use

Diesel: larger powerband, most common rental choice

• Stationary MarketNatural Gas/Propane: 10 kW through 1.8 MW output

Diesel: 10 kW through 3000 kW output

Page 21: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

GASOLINE CONSIDERATIONS

ADVANTAGES

• Fuel availability

• Independent of the Utility network

• Cold Start Capabilities

• Reliability

• Portability

DISADVANTAGES

• Fuel Energy density and Output Limitations, heat limit size

• Durability compared to diesel

• Shelf life and Storage limitations of fuel

• Fuel Cost

• Fuel Safety

• Emissions – carbon monoxide poisoning

Page 22: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Diesel Considerations

ADVANTAGES• Highest BTU content for the

volume- power density

• Combustible, but not volatile.

• Safer than flammable liquid

• Independent of the Utility Grid

– Important for earthquake prone areas

• Start Time

• Durability

• Reliability

• Portability

DISADVANTAGES

• Shelf life & storage limitations of fuel

• Fuel Cost

• Permitting Requirements

Page 23: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Gaseous Fuels: Natural Gas & Propane

ADVANTAGES

• Steady national fuel supply

• Generally Lower fuel cost (NG) than diesel

• No fuel storage costs (NG)

DISADVANTAGES• Power density is much less than

Diesel, requiring larger engines to supply similar output (kW).

• Less durable compared to gasoline and diesel counterpart

• Seasonal supply shortages and Cold weather start concerns for propane

• Reliance on utility for natural gas, and limited storage capability for propane

• Some concerns during natural disasters affecting fuel supply, earthquakes and severe storms or fires.

Page 24: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

Concluding Thoughts

• Being prepared for power outages is good business,

economic and health and safety sense.

• Many fuels and options are available and selection is

based on electrical supply needs, budget, other

considerations. Not a one-size fits all.

• Government Incentives have proven valuable to

business owners to make back-up power investments.

Page 25: Keeping the Lights On and Critical Services Functioning · 9/18/2014  · Emissions Environment Economics Applications Uses Legacy Products. ... Commercial industrial $12,500 Median

For More Information, Visit the Leaders in Power

Generation

• Caterpillar

• Cummins

• John Deere

• Volvo Penta

• CNH Industrial

AGCO/Massey Ferguson, Isuzu, MTU Onsite Energy, Yanmar