Combined Heat and Power
Engineering and Installation
In the Pacific NW
Marcia Karr, PE
U.S. DOE Northwest CHP Technical Assistance Partnership
Energy Trust of Oregon - ETO
June 15, 2016
Considerations of Presentation
1. Consider sponsoring training
2. Consider deemed calculation method
for incentive
Outline of Presentation
o
o
o
o
o
o
o
o
o
Scoring LEED Points
Financial Options
Overview of CHP & benefits, technical potential
CHP technology & equipment
Key analytical Questions
Resiliency
Electrical Consideration
Building codes – NG CHP is explicitly allowed!
Resources & Tools
Scoring LEED Points
with CHP
Courtesy of http://www.usgbc.org
USGBC Methodology for Modeling CHP
(BD+C)
Methodology for Modeling Combined Heat & Power for EAp2/c1 in LEED - 2009
http://www.usgbc.org/resources/methodology-modeling-combined-heat-amp-powereap2c1-leed-2009
o Guidance on how to account for CHP in the whole building
energy simulation
o Applies to on-site CHP systems which can either have the
same ownership as the project or different ownership
7
USGBC Methodology for Modeling CHP (BD+C)
1. Model Baseline Building
– Estimate energy loads using an energy model (Baseline Building
must meet requirements of ASHRAE 90.1).
– Determine energy cost for building by summing purchased
electricity and purchased thermal.
2. Model Design Building (includes CHP)
– Estimate energy loads using an energy model.
– Determine energy cost for building by summing cost of CHP input
fuel and any additional purchased electricity and purchased
thermal needed.
3. Determine OEP Points
– OEP points are calculated based on the percentage reduction in
energy cost of the Design Building compared to the Baseline
Building.
8
CHP’s Demonstrated Point Impact
Building
# of Apts.
CHP Type/Size
Pts. w/CHP
1
620
130 kW MT
2
8
2
340
65 kW MT
2
10
3
500
200 kW MT
2
7
4
100
65 kW MT
1
7
5
185
65 kW MT
3
9
6
250
65 kW MT
1
7
7
230
200 kW MT
0*
9
8
40
75 kW Recip
0*
4
* Would not meet Prerequisite w/out CHP
11
Pts. w/out CHP
CHP Plant “315 on A” – Boston, MA
• 225,000 square feet
apartment building
• Aegen ThermoPower 75kW
• Provides domestic hot water
heating (100%) and (80%)
building heat
• Provides 28% of building’s
electrical load
• LEED® Gold
• System earned 8 OEP points;
CHP responsible for 4 of them
12
Financial Options
Courtesy of www.Enovationpartners.com
Business Model Framework
Responsibilities in build and operational phases can be divided between in-house and external parties…
Operational
Build
Development
Financing
Engineering,
Procurement,
Construction
• Customer contracting
• Permitting
Operations
• Dispatch management
• Minor maintenance
• Equity
• Debt (bank, vendor)
Maintenance
• Major maintenance
• OEM interaction
• CHP design
• Construction management,
commissioning
Asset
Management
• Gas purchase
• Insurance, emissions
compliance
…but contractual structures must be chosen carefully to ensure alignment of capabilities and interests,
and to protect the customer’s operations and investment
Self-Financed
Overview
Development
Strengths & Weaknesses
Operations
Strengths
• Allows customer to capture all operational savings
available through CHP
Financing
Maintenance
• Leverages full capabilities of internal facilities
personnel
Engineering,
Procurement,
Construction
Asset
Management
• Potential for nonprofits (municipalities,
universities, schools, hospitals) to access low-cost
financing sources
• Equity financed through customer’s own balance
sheet, with potential for commercial debt or
bond issuance
• Common to have project designed by external
parties
• Major maintenance likely to be performed by
manufacturer or licensed dealer
Legend
Internal
Internal/
External Mix
Fully
Outsourced
Weaknesses
• Fully relies on engineering firm’s design, with no
guarantee of interest alignment
• Turns customer into a power plant operator, which
is unlikely to be a core competency
• Ties up customer capital in non-core asset
Lease or sale/leaseback
Overview
Development
Strengths & Weaknesses
Operations
Strengths
• Frees up customer capital for core activities by
turning CHP into an operating expense
Financing
Maintenance
Engineering,
Procurement,
Construction
Asset
Management
• Can be built with customer or external party’s
capital, but once operating, CHP asset is owned
by third party
• Customer can take on development/operating
responsibilities if desired
• Flexible contract structures to align risk
tolerances of each party
Legend
Internal
Internal/
External Mix
Fully
Outsourced
• Taking on portions of operational responsibilities
can remove risk from external party, enabling
access to lower costs of capital, allowing customer
to keep greater percentage of savings
• Can be structured to keep CHP off of customer’s
balance sheet
Weaknesses
• CHP design firm has no risk
• Depending on contract structure, external party
may have little incentive for efficient operation
• Potential for heavy reliance on customer’s facilities
staff, which may not have the capability to run the
CHP asset with best practices
Power Purchase Agreement/Energy Sale
Agreement
Overview
Development
Financing
Strengths & Weaknesses
Operations
Maintenance
Engineering,
Procurement,
Construction
Asset
Management
• CHP designed, built, owned, financed, and
operated by external party
• Customer buys power and thermal energy from
external party per contract structure
• Potential flexibility in contract structures to align
customer and external party’s interests and
rewards (savings splits vs PPA)
Legend
Internal
Internal/
External Mix
Fully
Outsourced
Strengths
• Enables customer to reduce energy costs with little
risk and does not devote customer’s capital or staff
to non-core activities
• Incentivizes external party to optimize design and
operating protocols to maximize asset profitability
• Gives nonprofits an avenue to monetize tax credits
and accelerated depreciation
Weaknesses
• External party takes a portion of the energy cost
savings for capital recovery
• May not be an accessible source of financing for
some businesses, depending on creditworthiness
• Contract structures and commitments must be
carefully thought through to ensure customer has
reasonable worst case scenario
Overview of CHP &
Benefits
Combined Heat and Power:
A Key Part of Our Energy Future
o Form of Distributed Generation
(DG)
o An integrated system
o Located at or near a
building / facility
o Provides at least a portion of the
electrical load and
o Uses thermal energy for:
– Space Heating / Cooling
– Process Heating / Cooling
– Dehumidification
CHP provides efficient,
clean, reliable, affordable
energy – today and for
the future.
Source:
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/c
hp_clean_energy_solution.pdf
15
Over Two Thirds of the Fuel Used to Generate Power in the
United States Is Lost as Heat
Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12-08.pdf
Benefits of Combined Heat and Power
o CHP is more efficient than separate generation of
electricity and heat
o Higher efficiency translates to lower operating cost,
(but requires capital investment)
o Higher efficiency reduces emissions of all pollutants
o CHP can also increase energy reliability and enhance
power quality
o On-site electric generation reduces grid congestion and
avoids distribution costs
National Goal
Additional 40 GW of CHP
Achieving this goal would:
o Increase total CHP capacity in the U.S. by 50 percent
o Save energy users $10 billion a year compared to current energy
use
o Save one quadrillion Btus (Quad) of energy — the equivalent of 1
percent of all energy use in the U.S.
o Reduce emissions by 150 million metric tons of CO2 annually —
equivalent to the emissions from over 25 million cars
o Result in $40-$80 billion in new capital investment in
manufacturing and other U.S. facilities over the next decade
Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf
18
Emerging Drivers for CHP
o Benefits of CHP recognized by
policymakers
o
President Obama signed an Executive Order to
accelerate investments in industrial EE and CHP on
8/30/12 that sets national goal of 40 GW of new CHP
installation over the next decade
o
State Portfolio Standards (RPS, EEPS, Tax Incentives,
Grants, standby rates, etc.)
o Favorable outlook for natural gas
supply and price in North America
o Opportunities created by
environmental drivers
o Utilities finding economic value
o Energy resiliency and critical
infrastructure
Executive Order: http://www.whitehouse.gov/the-pressoffice/2012/08/30/executive-order-accelerating-investment-industrial-energyefficiency
Report:
http://energy.gov/sites/prod/files/2013/11/f4/chp_clean_energy_solution.pdf
19
CHP Is Used Nationwide
>4,400 CHP Sites
(2014)
82,700 MW – installed
capacity (2014)
Saves 1.8 quads of fuel
each year
Avoids 241 M metric tons
of CO2 each year
86% of capacity – industrial
69% of capacity – natural gas
fired
Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2014)
20
Attractive CHP Markets
Industrial
o
o
o
o
o
o
o
o
o
Chemical
manufacturing
Ethanol
Food processing
Natural gas pipelines
Petrochemicals
Pharmaceuticals
Pulp and paper
Refining
Rubber and plastics
Commercial
Institutional
Agricultural
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Data centers
Hotels and casinos
Multi-family housing
Laundries
Apartments
Office buildings
Refrigerated
warehouses
Restaurants
Supermarkets
Green buildings
Hospitals
Schools (K – 12)
Universities & colleges
Wastewater treatment
Residential confinement
o
o
Concentrated
animal feeding
operations
Dairies
Wood waste
(biomass)
Oregon and Washington CHP Technical Potential (MW)
Source: http://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
Oregon All Commercial CHP Technical Potential –
Topping Cycle, Waste Heat to Power, and District Energy
SIC
Commercial Business Type
43
52
4222
4581
4952
5411
5812
6512
6513
7011
7211
7374
7542
7832
7991
7997
8051
8062
8211
8221
8412
9100
9223
9711
Post Offices
Retail
Refrigerated Warehouses
Airports
Water Treatment
Food Stores
Restaurants
Commercial Office Buildings
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
50-500 kW
50-500 kW
Sites
(MW)
3
190
9
3
16
169
158
726
149
182
23
31
11
1
53
45
121
37
7
34
12
132
7
3
2,122
0.3
30
1
1
2
24
15
36
11
21
3
6
1
0.1
6
6
12
9
0.5
6
1
17
2
0.4
211
0.5 - 1 MW
0.5-1 MW
Sites
(MW)
1 - 5 MW
1-5 MW
Sites
(MW)
0
6
1
0
1
0
0
223
54
10
1
2
0
1
1
0
0
12
0
5
0
27
2
1
347
0
0
1
0
0
2
0
56
8
7
0
1
0
0
0
2
0
16
0
21
0
9
6
1
130
0
4
1
0
1
0
0
89
27
6
1
1
0
1
1
0
0
8
0
3
0
20
2
1
164
0
0
2
0
0
5
0
34
8
11
0
1
0
0
0
3
0
38
0
60
0
15
14
5
197
5 - 20 MW
5-20 MW
Sites
(MW)
0
0
0
1
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
7
0
0
0
0
9
Source: U.S. DOE Analysis Combined Heat and Power Technical Potential March 2016
http://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
0
0
0
6
0
0
0
0
0
6
0
0
0
0
0
0
0
0
0
55
0
0
0
0
67
> 20 MW
Total
>20 MW
Sites
Total Sites Total MW
(MW)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
23
0
0
0
0
23
3
196
11
4
17
171
158
1,005
211
200
24
34
11
2
54
47
121
65
7
68
12
168
15
5
2,609
0.3
34
3
7
3
29
15
159
47
44
4
8
1
1
7
9
12
55
0.5
148
1
52
18
6
662
Washington State All Commercial CHP Technical Potential –
Topping Cycle, Waste Heat to Power, and District Energy
50-500 kW
0.5 - 1 MW
1 - 5 MW
5 - 20 MW
> 20 MW
Total
Sites
50-500 kW
(MW)
Sites
0.5-1 MW
(MW)
Sites
1-5 MW
(MW)
Sites
5-20 MW
(MW)
Sites
>20 MW
(MW)
Total Sites
Total MW
SIC
Commercial Business Type
43
52
4222
4581
4952
5411
5812
Post Offices
Retail
Refrigerated Warehouses
Airports
Water Treatment
Food Stores
Restaurants
9
351
30
2
35
378
302
1
50
4
1
4
54
28
0
16
2
1
1
0
0
0
10
1
1
1
0
0
0
4
0
0
1
1
1
0
9
0
0
1
1
2
0
0
0
1
0
0
0
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
371
32
4
37
379
303
1
69
6
12
6
55
30
Commercial Office
Buildings
Multifamily Buildings
1,265
293
63
22
389
106
156
53
97
16
58
16
0
0
0
0
0
0
0
0
1,751
415
277
91
Hotels
Laundries
Data Centers
Car Washes
Movie Theaters
Health Clubs
Golf/Country Clubs
283
21
62
24
0
85
76
35
4
10
2
0
9
9
17
0
3
0
0
0
0
10
0
2
0
0
0
0
17
1
3
0
0
1
0
25
1
4
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
317
22
68
24
0
86
76
70
5
15
2
0
11
9
6512
6513
7011
7211
7374
7542
7832
7991
7997
8051
Nursing Homes
197
23
0
0
0
0
0
0
0
0
197
23
8062
8211
8221
8412
9100
9223
Hospitals
57
13
15
10
32
70
1
6
0
0
105
99
Schools
0
0
0
0
0
0
0
0
0
0
0
0
College/Univ.
40
7
3
2
45
117
6
74
1
26
95
227
Museums
Government Buildings
Prisons
21
200
11
3
31
2
0
25
2
0
17
2
0
23
7
0
43
15
0
2
0
0
15
0
0
0
0
0
0
0
21
250
20
3
107
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://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Potential%20Study%203-31-2016%20Final.pdf
CHP Systems and
Technology
Types of Prime Movers
o CHP technology & equipment
o
o
o
o
o
o
Reciprocating Engines
Gas Turbines
Steam Turbines
Micro Turbines
Fuel Cell
ORC
Prime Mover: Reciprocating Engines
o Size range: 10 kW to 18 MW
o Characteristics:
o
o
o
o
Thermal can produce hot water, lowpressure steam, and chilled water
(through absorption chiller)
High part-load operation efficiency
Fast start-up
Minimal auxiliary power requirements
for black start
Example applications:
Food Processing, Office Buildings, Multifamily
Housing, Nursing Homes, Hospitals, Schools,
Universities, Wastewater Treatment, Correctional
Facilities
27
Source: DOE/EPA Catalog of CHP Technologies
Reciprocating Engine Characteristics
Compiled by ICF by vendor-supplied data
Prime Mover: Combustion Gas Turbine
o Size range: 500 kW to 300 MW
o Characteristics:
o
o
Produces high-quality, hightemperature thermal that can
include high-pressure steam for
industrial processes; and chilled
water (with absorption chiller)
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
29
Source: DOE/EPA Catalog of CHP Technologies
Gas Turbine Characteristics
Prime Mover: Microturbines
o Size range: 30 kW to 1,000 kW
o Characteristics:
o
o
o
o
o
Thermal can produce hot water, steam, and
chilled water
Compact size and light weight, brought on line
quickly
Inverter-based generation can improve power
quality
Usually below 200 kW unless multiple units
utilized
Recuperator typical
Example applications:
Multifamily housing, hotels, nursing homes,
wastewater treatment, gas and oil production
31
Source: DOE/EPA Catalog of CHP Technologies
Micro-Turbine Characteristics
Compiled by ICF by vendor-supplied data
Heat Recovery Steam Generator (HRSG)
o Reduces cost of electricity
o
Up to 50% output without
additional fuel consumption
o Reduces environmental footprint
o
Emissions reduced by at least 30%
per MWh produced
o Increases flexibility and reliability
o
33
Hospitals, universities, chemical
plants, refineries, food processing,
paper manufacturing, military
bases
Source: DOE/EPA Catalog of CHP Technologies
Steam Turbines:
One of the oldest prime mover technologies still in use
o Size Range: 100 kW to over 250 MW
o Characteristics
o
o
o
o
Requires a boiler or other steam source
Can be mated to boilers firing a variety of gaseous,
liquid or solid fuels (such as coal, wood, and waste
products).
Steam extracted or exhausted from steam turbine for
thermal applications.
Operates over a wide range of steam pressures.
Example Applications:
Industrial applications, district heating and cooling systems;
forest products, paper mills, chemicals, food processing,
backpressure turbines in lieu of steam system pressure
reducing valves
34
Source: DOE/EPA Catalog of CHP
Technologies
Steam Turbines - Continued
o Condensing Turbines:
•
•
Industrial waste heat streams
can be used to produce steam
Excess steam can be used to
produce electrical energy
Sub-atmospheric
pressure
o Backpressure Turbine:
•
Produces electrical energy at
locations where steam pressure
is reduced with a PRV
Lower pressure
applications
Prime Mover: Fuel Cells
o Size range: 3 kW to 2 MW
o Characteristics:
o
o
o
o
o
Relatively high electrical efficiencies due to electrochemical process
Uses hydrogen as the input fuel
Relatively low emissions without controls due to absence of combustion process
Inverter-based generation can improve power quality
Relatively high installed cost, ~$5k/kW
Example applications:
Data centers, hotels, office buildings,
wastewater treatment (WWT needs
gas scrubbing)
Source: DOE/EPA Catalog of CHP Technologies
36
Fuel Cell Characteristics
Fuel Cell Characteristics - Continued
Approximating System Costs
Installed and O&M Cost Estimates CHP Prime Movers with Heat Recovery for Standard Installations
Installed Costs
O & M Costs
Reciprocating Engines
$1,000 to $1,800 per kW
$0.010 to .015 per kWH
Gas Turbines
$800 to $1,500 per kW
$0.005 to $.008 per kWh
Micro-turbines
$1,000 to $2,000 per kW
$0.010 to $0.15 per kWh
Absorption Chillers -- $500 to $1,000/RT (dependent on size)
Chillers
Absorption or adsorption chillers can be incorporated into the
existing central mechanical plant operations in many ways:
o
o
o
o
Waste heat application
Part of a combined cooling, heat, and power (CCHP or tri-generation)
application
As a stand-alone gas-fired absorption chiller application
Using renewable solar as the heat source for the refrigeration cycle
Chillers – Example
o As much as $100,000/mo in demand
charges
o Summer months due to DX chillers
o Demand charge reduction possible
with absorption chillers
Benefits of Chillers
o Reduce energy costs
o Stabilize risks associated with fluctuating energy costs
o Improve equipment reliability
o Reduce greenhouse gas emissions by up to 50% for the power generated
o Reduce grid congestion
o Reduce electrical demand charges
o Provide reliable power supply
o Chillers use low-global warming and ozone-safe natural Refrigerants (existing in
nature) like R717 (NH3) and R744 (CO2), water and air, which are promoted
through the LEED certification program, ASHRAE, EPA, DOE and GSA. (CHP can be
shown to offer 5-9 LEED points
http://www.epa.gov/chp/treatment-chp-leedr-building-design-and-construction-new-construction-and-major-renovations
Considerations of Example Problem
o What is this solution telling me?
o What other factors need to be considered?
•
•
•
•
•
Credit for backup generation
Carbon Credits
Government grants
Tax credits (federal / state)
Utility Incentives
o Energy Price Sensitivity Analysis
•
•
•
•
•
10% electric increase = 4.6 year payback
20% electric increase = 3.6 year payback
10% natural gas increase = 7.8 year payback
20% natural gas increase = 10.4 year payback
10% electric AND 10% natural gas increase = 5.4 year payback
Considerations of Example Problem
Electricity at $0.06 / kWh, Propane at $21.834 / MMBtu, Wood Chips-Gasified at $0 / MMBtu, Plant Cost=
$6700 / kW, Variable O&M = $0.001 / kWh
Average operation is 50% of derated capacity for 8760 hours at 100% availability (100% in Year 1)
Installed Capital
Costs
20%
14.0
-40%
12.0
10.0
8.0
6.0
Electricity
Purchase Price
4.0
-20%
2.0
0%
Natural Gas:
CHP Fuel Price
-
Variation in Parameter
40%
Private Grant
Federal ITC as
Grant
-60%
-80%
-100%
-120%
Before-Tax Simple Payback
(years)
Questions: When Looking at your Facility
o Is there a use for the CHP
waste/recycled heat?
o Is there a major rehab or
thermal equipment change
planned?
o Is there sufficient “spark
spread”?
o Identify size and type prime
mover to meet thermal
requirements (high efficiency).
o Will the selected
configuration provide
adequate waste heat levels for
heating and/or cooling?
o Are there potential
installation issues – estimate
installation costs?
o What do basic economics
look like?
Is the application worth pursuing with a formal analysis?
Combined Heat and Power Candidates
Finding the Best
o
o
o
o
o
o
o
High and constant thermal load
Favorable spark spread
Need for high reliability
Concern over future electricity prices
Interest in reducing environmental impact
Existing central plant
Planned facility expansion or new construction; or equipment
replacement within the next 3-5 years
o Need for a generator on site
Spark Spread
Steps to Determining Spark Spread:
o Utilize prior 12 months electric and gas utility bills
o Determine average annual electric cost ($/MMBtu)
o Determine average gas cost ($/MMBtu)
o Calculating the gas/electric price difference = Spark Spread
CHP has more potential for favorable payback when the spark spread is greater than $12/MMBtu
Screening Questions
Screening
and
Preliminary
Analysis
Feasibility
Feasibility
Analysis
Analysis
Investment
Grade
Analysis
Procurement,
Procurement,
Operations,
Operations,
Maintenance,
Maintenance,
o Do you pay more than $.06/kWh on average for
electricity (including generation, transmission and distribution)?
o Are you concerned about the impact of current or future energy
costs on your operations?
o Are you concerned about power reliability?
What if the power goes out for 5 minutes… for 1 hour?
o Does your facility operate for more than 3,000 hours per year?
o Do you have thermal loads throughout the year?
(including steam, hot water, chilled water, hot air, etc.)
Screening Questions (cont.)
o Does your facility have an existing central plant?
o Do you expect to replace, upgrade, or retrofit central plant
equipment within the next 3-5 years?
o Do you anticipate a facility expansion or new construction
project within the next 3-5 years?
o Have you already implemented energy efficiency measures and
still have high energy costs?
o Are you interested in reducing your facility's impact on the
environment?
o Do you have access to on-site or nearby biomass resources?
(i.e., landfill gas, farm manure, food processing waste, etc.)
Electrical Considerations
o
o
o
o
o
CHP Electric Equipment Requirements
Electric Power Delivery Methods and Configurations
Technical Issues and Safety Considerations
Project Killers and Challenges from the Electrical Perspective
Qualification Screening Questions – Electrical
CHP Electric Equipment Requirements
For CHP systems to generate and deliver power, the developer will
need to install a combination of the following:
o
o
o
o
o
o
Transfer switches
Relays
Circuit breakers
Fuses
Transformers
Capacitor Banks
o
o
o
o
o
o
Metering
Load Tap Changers
Conductors
Conduit
Electrical Rooms
Com and Controls
•
•
•
•
Utility
In-Plant (SCADA)
PLC
Load Shedding
o Reclosers
o Sectionalizers
o Fault Detection
Systems
o Anti-Islanding
Equipment
o Voltage Regulators
CHP Electric Power Delivery Methods
CHP systems can generate and deliver power in three different ways:
o Consuming all power within the facility or plant
•
•
“Stand-Alone” (Isolated-Feed) configuration
“Stand-Alone” (Isolated-Feed) configuration with Utility Backup
o Exporting all power to the utility through an interconnection
•
“Buy All, Sell All” configuration
o Parallel operations consisting of in-plant use and export
•
•
Parallel configuration without Utility Standby
Parallel configuration with Utility Standby
Parallel – With Utility Standby
This configuration allows
electricity generated to be
consumed on-site - excess energy
generated flows to the utility
grid. Utility supplies additional
energy needed but not met by
the generator(s).
During a grid outage, service disconnects, but the generator continues to operate.
During a generator outage, it will trip offline, but power will still be supplied by the grid.
Technical Issues and
Safety Considerations
When a CHP connects to a utility grid there are many concerns:
o Safety
•
o Equipment Protection
o Utility System Protection
Islanding
o Power Quality
•
•
•
•
Harmonics
Voltage
Frequency
Nuisance Tripping
•
IEEE 1547
•
•
•
Short-circuited phase faults
Open-circuit phase faults
Winding faults
• Fault Control
The primary factors/solutions that address the concerns include:
•
•
•
•
Utility Interconnection
Grounding
Protective Relaying and Devices
System Isolation
Two Types of Generators
Induction
Synchronous
o Requires External Power Source
to Operate (Grid)
o Self Excited
(Does Not Need Grid to Operate)
o Contributes to Poor PF
o Can Assist in PF Correction
o When Grid Goes Down,
CHP System Goes Down
o CHP System can Continue to
Operate thru Grid Outages
o Less Complicated & Less Costly to
Interconnect
o More Complicated & Costly to
Interconnect (Safety)
o Preferred by Utilities
o Preferred by CHP Customers
Operation Requirements and Highlighted CHP
Examples Maintaining Facility Operations
Uninterrupted Operation Requirements
o Black start capability
• Allows system start up
independently from the grid
o Generators capable of
grid-independent operation
• The system must be able to operate
without the grid power signal
o Ample carrying capacity
• System size must match critical loads
o Parallel utility interconnection and
switchgear controls
• System must be able to disconnect
from the grid, support critical loads,
and reconnect after an event
CHP System Highlights
Superstorm
Sandy
Princeton University
Princeton, NJ
5 MW gas turbine
Hurricane
Katrina
Mississippi Baptist
Medical Center
Jackson, MS
4.2 MW gas turbine
Midwest
Snow
Storm
Presbyterian Homes
Evanston, IL
2.4 MW recip engines
Operating
CHP Since
1969
Brandonview Building
St. Louis, MO
4.3 MW recip engines
Building Codes
Codes to Using Natural Gas as a Fuel Source
What they Actually Say
o International Building Code (IBC) Chapter 27
o National Fire Protection Association (NFPA) 99 & 110
o National Electrical Code (NEC) Articles 700 & 701
o Center for Medicare and Medicaid Services (CMS) Define
“Low probability of Failure”
60
International Building Code Ch. 27
Related Definitions
o Emergency
o Voice communication
o Exit signs
o Egress illumination
o Doors on I-3
o Elevator car lighting
o Fire detection and alarm
o Fire pumps
o Standby
o Smoke control
o Egress -elevators/platforms
o Sliding doors
o Inflation for membrane
structures
o Power & lighting for fire
command
NFPA 99
6.4.1.1.7 Uses for Essential Electrical System
6.4.1.1.7.1 - The generating equipment used shall be
either reserved exclusively for such service or normally
used for other purposes of peak demand control,
internal voltage control, load relief for the external
utility, or cogeneration.
62
NFPA 110.5.1 Energy Sources
5.1.1* The following sources shall be permitted to be used
for the emergency power supply (EPS):
•
•
•
* Liquid petroleum products at atmospheric pressure as
specified in the appropriate ASTM standards and as
recommended by the engine manufacturer
* Liquefied petroleum gas (liquid or vapor withdrawal) as
specified in the appropriate ASTM standards and as
recommended by the engine manufacturer
*Natural or synthetic gas
* Explanatory material can be found in Annex A of the NFPA codes
63
NEC Article 700 & 701
Emergency and Standby Fuel
Article 700-12 (b)(3) Dual Supplies. Prime movers shall not be solely
dependent on a public utility gas system for their fuel supply or
municipal water supply for their cooling systems. Means shall be
provided for automatically transferring from one fuel supply to
another where dual fuel supplies are used.
Exception: Where acceptable to the authority having jurisdiction, the use of other
than on-site fuels shall be permitted where there is a low probability of a
simultaneous failure of both the off-site fuel delivery system and power from the
outside electrical utility company.
64
Center for Medicare & Medicaid Services (CMS) Define Low Probability of Failure
Natural Gas Generator Reliability Letter Requirements:
o
A statement of reasonable reliability of the natural gas delivery.
o
A brief description that supports the statement regarding the reliability.
o
A statement that there is a low probability of interruption of the natural gas.
o
o
A brief description that supports the statement regarding the low probability of
interruption.
The signature of technical personnel from the natural gas vendor.
Additional motivator for CMS involves pollution reduction (emissions)
Source: CMS 2009 http://chfs.ky.gov/NR/rdonlyres/4C745EDB-C9D8-4AA9-B111-38092C60EFB4/0/NaturalGasGenerators.pdf
65
Fuel Emissions
Project Snapshot:
Reliability
Lake Forest Hospital
Lake Forest, IL
Application/Industry: Hospital
Capacity (MW): 3.2 MW
Prime Mover: Reciprocating Engine
Fuel Type: Natural Gas
Thermal Use: Space Heating, Cooling and
Hot Water
Installation Year: 1997
Energy Savings: $640,000/year
Testimonial: Before Lake Forest Hospital
installed their CHP system, they suffered
high energy costs and typically experienced
50-60 power interruptions each year. Their
CHP system now provides 90% of the
hospital’s electricity needs and 30% of its
steam needs, and has reduced annual
power interruptions from 50 to two.
Source: http://www.midwestchptap.org/profiles/ProjectProfiles/LakeForestHospital.pdf
Project Snapshot:
Cooley Dickinson
Health Care
Northampton, MA
Application/Industry: Hospitals
Capacity (kW): 500 KW
Prime Mover: Steam Turbine(s)
Fuel Type: Wood Chips
Thermal Use: Heat / Hot Water
Installation Year: 2006
Testimonial: This SECOND biomass
boiler eliminated the need to burn oil
during annual maintenance
downtime, reduces peak load by
17.5%, and produces approx.
2 million KWH electricity per year.
The plant also has full utility company
interconnectivity and operates in
parallel with the electrical grid.
Source: http://www.northeastchptap.org/Data/Sites/5/documents/profiles/CooleyDickinsonCaseStudy.pdf
Project Snapshot:
Increased ENERGY STAR Building Score
ProMedica Health System
Wildwood
Toledo, OH
Application/Industry: Hospital
Capacity (kW): 130 kW
Prime Mover: Microturbine
Fuel Type: Natural Gas
Thermal Use: Heating
Installation Year: 2013
Energy Savings: Unknown
Testimonial: The microturbine CHP system
at ProMedica Wildwood is equipped with a
FlexSet control system. The control system
is web-based, allowing the facility mangers
to monitor the system on computers or
cell phones.
Source:
http://www.gemenergy.com/wpcontent/uploads/2014/03/optimizechp-flexset-ProMedicaWildwood-030414.pdf
Project Snapshot:
Addressing Coal Emissions
Kent State University
Kent, OH
Application/Industry: University
Capacity (MW): 12 MW
Prime Mover: Gas Turbine
Fuel Type: Natural Gas
Thermal Use: Heating and cooling
Installation Year: 2003, 2005
Emissions Savings: Reduces CO2 emissions
by 37,000 tons/year
Testimonial: The CHP system at Kent State
won an EPA Energy Star Award in 2007.
The system, which can run on natural gas
or diesel if necessary, has been able to
achieve nearly 75% efficiency, and it uses
19% less fuel than a traditional separate
heat and power system.
Source: https://mysolar.cat.com/cda/files/2111485/7/dschp-ksu.pdf
Project Snapshot:
Multiple Waste Heat Recovery Streams
Vestil Manufacturing
Angola, IN
Application/Industry: Materials
Handling Equipment Manufacturing
Capacity (kW): 140 kW
Prime Mover: Microturbine
Fuel Type: Natural Gas
Thermal Use: Process heating and
drying
Installation Year: 2005
Testimonial: Vestil Manufacturing
received a $30,000 grant from the
Indiana Dept. of Commerce to offset
equipment costs of their CHP system.
The project also received an additional
$100,000 from a DOE program focused
on distributed generation
demonstration projects. The project
received the 2005 EPA CHP Certificate of
Recognition.
Source: http://www.midwestchptap.org/profiles/ProjectProfiles/VestilManufacturing.pdf
Project Snapshot:
Dairy Farm Cogeneration
Sievers Family Farm
Stockton, IA
Application/Industry: Dairy Farm
Capacity (MW): 1 MW
Prime Mover: Reciprocating Engine
Fuel Type: Biomass
Thermal Use: Heating the Digesters
Installation Year: 2013
Energy Savings: Unknown
Testimonial: The 1 MW engine at
Sievers Family Farm was awarded a
$500,000 USDA REAP grant, a
$250,000 NRCS EQIP grant, and a
$200,000 Alliant Energy grant. After
the farm’s electric needs are met, the
remainder of the power is sold to
Interstate Light and Power (Alliant
Energy).
(L to R) Bryan Sievers, Paul Owen (CAT Financial), Jon Sievers, David Harris (Altorfer)
Source: http://www.americanbiogascouncil.org/projectProfiles/stocktonIA.pdf
Resources and Tools
U.S. DOE CHP Technical
Assistance Partnership Mission
o Provide stakeholders with the resources necessary to
identify and pursue CHP market opportunities.
o Support implementation of CHP systems in both stand-alone
and district energy and/or microgrid with CHP settings.
President’s Executive Order 13624:
40GW of new CHP by 2020
CHP TAPs, as regional CHP experts, are critical
components of achieving the goal:
o Provide fact-based, un-biased information on CHP
o
o
o
o
o
Technologies
Project development
Project financing
Local electric and natural gas interfaces
State best practice policies
o Vendor, fuel, and technology neutral
CHP Technical Assistance
Partnerships
 Education and Outreach
Providing information on the energy and nonenergy benefits and applications of CHP to state
and local policy makers, regulators, end users,
trade associations, and others.
 Technical Assistance
Providing technical assistance to end-users and
stakeholders to help them consider CHP, waste
heat to power, and/or district energy with CHP in
their facility and to help them through the
development process from initial CHP screening
to installation.
 Market Opportunity Analysis
Supporting analyses of CHP market opportunities
in diverse markets including industrial, federal,
institutional, and commercial sectors
CHP TAP Technical Assistance
Screening and
Preliminary
Analysis
Quick screening
questions with
spreadsheet
payback calculator.
Feasibility
Analysis
Investment
Grade Analysis
Uses available site
information.
Estimate: savings,
Installation costs,
simple paybacks,
equipment sizing and
type.
Procurement,
Operations,
Maintenance,
Commissioning
3rd Party review of
Engineering Analysis.
Review equipment
sizing and selection.
Review
specifications and
bids. Limited
operational analysis
A Feasibility Analysis Typically Involves:
Screening
and
Preliminary
Analysis
o
o
o
o
o
o
o
Feasibility
Analysis
Investment
Grade
Analysis
Procurement,
Operations,
Maintenance
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
Resources and Tools
DOE/EPA Catalog
of CHP Technologies
(updated 2015)
https://www.epa.gov/sites/production/files/201507/documents/catalog_of_chp_technologies.pdf
2. Good Primer Report
http://energy.gov/sites/prod/files/2013/11/f4/
chp_clean_energy_solution.pdf
Resources and Tools
Project Profile Database
(150+ case studies)
DOE Database of Incentives &
Policies (DSIRE)
http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_datab
ase/
www.dsireusa.org
Resources and Tools
DOE CHP Installation Database
(List of all known
CHP systems in U.S.)
https://doe.icfwebservices.com/chpdb/
No-Cost CHP Screening and
Other Technical Assistance from
the CHP TAP
http://www.energy.gov/sites/prod/files/2015/11/f27/C
HP%20TAP_informative%20handout_10.30.15.pdf
Summary
o CHP gets the most out of a fuel source enabling:
•
•
•
Reduced operating costs
Reduced environmental footprint
More efficient power and thermal generation
o Proven technologies commercially available cover full
range of sizes and applications
83
Thank You !
Contact information:
Marcia Karr, PE; (360) 956-2144 [email protected]
David Sjoding, Director; (360) 956-2004 [email protected]