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Panel 4: Strategies to Improve the Efficiency and Reliability with Which Primary Input Energy is Converted to Useful End-use Services Smart Grid Development in China and the United States: Status, Prospects and Opportunities for Bilateral Cooperation

Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

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Page 1: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Panel 4: Strategies to Improve the Efficiency

and Reliability with Which Primary Input

Energy is Converted to Useful End-use Services

Smart Grid Development in China and the United States: Status,

Prospects and Opportunities for Bilateral Cooperation

Page 2: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Panel 4: Strategies to Improve the Efficiency

and Reliability with Which Primary Input

Energy is Converted to Useful End-use Services

Remarks by:

M. Granger Morgan

Head, Department of Engineering

and Public Policy

Carnegie Mellon University

Pittsburgh, PA 15213

412-268-2672

[email protected]

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Energy use in the U.S.

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Note that... in 2010, just over 2/3 of the primary energy

that went in to

the U.S.

electric power

system ended

up being

rejected as

waste heat.

Of course, this is not because engineers are doing a bad job. Rather, it results from the basic laws of thermodynamics and the fact that most U.S. power stations are remote from places where the waste heat might be used.

Page 5: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Strategies to increase the ratio (useful service out)/(primary energy in)

• Develop the ability to operate plants at higher temperature so as to increase their thermodynamic efficiency.

• Add thermodynamic "bottoming cycles."

• Co-locate industrial facilities that can use capture waste heat.

• Move central station plants closer to population centers so that "district heating" becomes feasible.

• Promote greater use of smaller distributed generation (DG) with combine heating and cooling (CHC).

Page 6: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Ultrasupercritical coal plants

600 Mw; Cost $1.8 billion

Steam: 3675 psi @ 607 °C

(vs 2400psi @ 540 °C)

Heat rate: 8,950 BTU/KWh

(vs ~10,400)

Image sources: AEP; www.hopeprescott.com

Page 7: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Bottoming cycles & waste heat recovery

It is, of course, common to add a steam cycle to gas turbine systems (combined cycle plants). "Bottoming cycles" can also be run with coal plants.

While waste heat recovery

has been slow to take off

in the US, some like Tom

Caston (CEO of Recycled

Energy Development, Inc.)

have continued to push

the idea and have built a

number of facilities that

are now operating.

Images from Nature and www.recycled-energy.com

Page 8: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

District heating In much of the world, including some parts of China, the heat from a power plant is used for district heating. In the U.S. a number of central cities have district heat (e.g., Denver since 1880; New York since 1882). However, in the U.S. very few large power plants also provide district heating because most are located far from urban areas.

This district heating plant in

Cologne, Germany that

generates 400 MWe as well as

heat to ~45,000 households.

Photo and data from www.lahmeyer.de

Source: Nature, 2009 Mar 12

Page 9: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Distributed generation (DG) with combined heat and cooling

This technology holds the potential to roughly double

the efficiency with which input energy (typically gas)

is converted into useful services.

As my recent PhD student Kyle Siler-Evans

demonstrated, present DG technology has

significant economies of scale.

Thus, one would probably not like to run DG in

individual homes but rather in micro-grids, down

below the distribution system.

Page 10: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

DG Economies of Scale

Economies of scale for cogeneration applied to a hospital complex. Net present values are based on the average of the four pricing assumption with the full range shown as vertical bars. Results are given as function of generator size (log scale). Generators of more than several megawatts are too large for a single hospital but may be appropriate for a micro-grid, which would serve a small aggregate of end users.

Page 11: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

There are regulatory obstacles to building micro-grids in the U.S.

to legacy utilities. This means the operator of a DG or micro-grid system is not allowed to sell power to anyone (except to the legacy utility).

King and Morgan, Journal of Energy Engineering, ASCE,

pp. 150-164, 2007.

Most U.S. states have laws that grant "exclusive service territories"

Page 12: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Of course there are also technical issues of stability and protection… …but these can be solved without too much difficulty.

Marija Ilic (and I) have worked with two students (Masoud

Nazari and Siripha Junlakarn) who have addressed these

issues. Work by Masoud Nazari

Note that these issues limit free market "plug and play"

strategies, but could be handled with appropriate policy

frameworks.

Page 13: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Beyond the energy efficiency benefits … … wide adoption of DG, together with distribution automation and smart meters, holds the potential to make it possible to secure critical social services when the bulk power system goes down.

In 2003, a group of us at

Carnegie Mellon began to

argue that, while we should do

everything within reason to

secure the reliability of the

power system, some blackouts

are inevitable and we should

be devoting greater attention

to moderating their impact

when they occur. Figure from Hines, Apt and Talukdar,

Energy Policy, 37,5249–5259, 2009. Data

for U.S. from 1984-2006.

Page 14: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Some examples of "critical social services"

Emergency Services

911, emergency operations

centers, and other dispatch

Police services

Fire protection services

EMS

Medical Services

Transport ambulance services

Life-critical in-hospital care

(life support systems,

operating rooms, etc.)

Non-critical in-hospital care

(refrigeration, heating and

cooling, sanitation, etc.

Clinics and refrigerated

pharmacies

Nursing homes and other

non-hospital care

Non-electric Public Utilities

Water

Sewer

Natural gas

Lighting

Building evacuation and

stairwell lighting

Domestic lighting

Lighting in commercial

establishments

Security lighting

Street lighting

Food

Cash registers

Lighting

Refrigeration

Restock operations

Financial

Cash machines

Banking services

Credit card systems

Fuel Infrastructure

Pump operations

Pipeline systems

Local fuel storage capacity

Transport and distribution

capac ity and operations

(including river locks)

Whole sale and retail operations

Communication and cyber services

Radio transmission and recep tion

Television transmission and

recep tion

Wire-line telephone

Cable systems

Wireless telephone

Wired data services

Wireless data services

Computer services on customer's

premises

Computer services off customer's

premises

Non-emergency government

services

Government information and

service offi ces

Prisons

Transportation and mobility

Building elevators

Traffi c signals

Tunnels

Light rail systems and subways

Conventional rail systems

including railroad crossings

Air traffi c control

Airport operations including

landing and related lighting

River lock and dam operations

Drawbridge operations

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Page 15: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Several studies have … …looked at options to build on DG smart meters, and distribution automation to create islanded systems that could sustain critical social services.

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Work by Siripha Junlakarn

Narayanan and Morgan, "Sustaining Critical

Social Services During Extended Regional

Power Blackouts," Risk Analysis, 32, 1183-

1193, 2012. NRC, 2012

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Sustaining critical social services

Figure source: Narayanan and Morgan, "Sustaining Critical Social Services During

Extended Regional Power Blackouts," Risk Analysis, 32, 1183-1193, 2012.

Page 17: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

Modest incremental cost Our analysis suggests that the incremental cost, above the cost of the upgrades that many power companies and customers are making, are modest.

However, no profit-maximizing utility can be expected to make such an investment on its own.

DoE or DHS should fund a few demonstrations. That could give PUCs or local governments the confidence to move forward in more vulnerable regions.

Not all critical services should be

addressed this way. Hospitals, water and

sewer systems, etc. should have their

own back up. Traffic lights should use

LEDs with PV trickle charge back up, etc.

Image sources: www.kaybeeelectric.com; www.indiamart.com 17

Page 18: Smart Grid Development in China and the United States ... · cycle plants). "Bottoming cycles" can also be run with coal plants. While waste heat recovery has been slow to take off

End

In developing the ideas discussed in this talk, I have been fortunate to have generous support from the

National Science Foundation (SES-9209783, BCS-9218045; SES-034578; SES-0949710 and others),

the Department of Energy (DE-FG02-93ER61712, DE FG02-93ER61711, DE-FG02-94ER61916), the

Electric Power Research Institute, Alfred P. Sloan Foundation, the Gordon and Betty Moore Foundation,

the Scaife Family Fund, the Doris Duke Charitable Foundation, the MacArthur Foundation, the IRGC,

DHS via the NRC, Carnegie Mellon University and a number of others. Thanks also to my many

colleagues and students including Jay Apt, Marija Ilic, Lester Lave, Anu Narayanan, Sarosh Talukdar

and members of the NRC study panel on Terrorism and the Electric Power Delivery System.

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