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FEMP ADD CHP Accelerated Development and Deployment of Federal CHP Update

FEMP ADD CHP Accelerated Development and Deployment of Federal CHP Update. Arun Jhaveri Regional Technology Manager Federal Energy Management Program US Department of Energy, Seattle Regional Office CHP in the Pacific Northwest Workshop October 15, 2002. Presentation Outline. Background:

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FEMP ADD CHP Accelerated Development and Deployment of Federal CHP Update

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  1. FEMP ADD CHPAccelerated Development and Deployment of Federal CHPUpdate Arun Jhaveri Regional Technology Manager Federal Energy Management Program US Department of Energy, Seattle Regional Office CHP in the Pacific Northwest Workshop October 15, 2002

  2. Presentation Outline • Background: • Federal Market Assessment for CHP • FEMP Services– ADD CHP • Update: • CHP Screenings at federal sites • Conclusions/Discussion

  3. Why DG in Federal Sector? • Support Multiple Federal Goals • Increase Efficiency and Reliability • Reduce Costs & Emissions • Energy Security • “Leadership by Example” • Establish Physical Infrastructure for Clean Technologies of Tomorrow (Hydrogen, Fuel Cells) • Increase Knowledge, Experience and Institutional Capability to manage on-site power systems

  4. What is CHP? Producing electricity on-site and using waste heat for productive purposes.

  5. Why CHP? • More efficient form of DER • Commercially available today-- • Proven but underutilized technology • Increased energy security • Agencies interested— but process is not easy

  6. What is Federal CHP Potential? • Market Assessment of CHP at Federal sites (2002) • Reports on FEMP & ORNL web sites • Full analysis online at www.ornl.gov/femp/pdfs/chp_market_assess.pdf • Base Case: Sites with simple payback in less than 10 years = 1500-1600 MW (gas Recip-ICE or Gas Combustion Turbine)

  7. Distribution of CHP Potential at Federal Sites: >1500 MW

  8. CHP Potential--DOE Regions

  9. Assessment: 1570 MW of Federal CHP Offers: • $170 million/year in energy cost savings • Avg. simple payback <8 years • 50 trillion Btu/yr of source energy savings • 4 million metric tons/yr of avoided CO2 • Increase reliability/security representing 13% of total federal electricity purchased (2000) - e.g. this is significant!

  10. Federal CHP Potential: large, energy intensive facilities dominate

  11. Factors Favoring CHP • High electric rates • Energy security upgrades planned • Gas/alternate fuel available • Thermal demand on site, follows electric load • Compatible infrastructure (central heat and cooling systems) • Large, steady thermal and electric loads

  12. Rules of thumb and Market Assessments –versus- How the market really works…. • CHP project potential and development process is very site-specific • Agencies need financing – and private partner role is vital

  13. Hurdles to DER-CHP: • Costs and complications = large lead time • Custom, site-specific designs • Energy (natural gas) price volatility • Future electric price uncertainty • Constrained capital markets--funding • Air quality/emissions issues • Siting, permitting, local regulations • Utility stand-by, exit, and interconnection fees

  14. Federal Hurdles to DER-CHP • Lack of reliable information on performance and costs • Low utility electric rates • Cross-cutting sectors, difficult to assess options and potential • Staff turnover and budgets limit large, long-term projects • Prefer to avoid responsibilities of power business; concerns about O&M

  15. FEMP – “ADD CHP” • Accelerated Development and Deployment of Combined Heat and Power (CHP) • Goal: Make proven CHP technology more accessible to the federal sector

  16. FEMP CHP Strategy • Integral part of FEMP services • Target assistance to address hurdles in federal sector • Focus on markets with highest potential for success • Help interested agencies make informed DER-CHP decisions • Move good projects to deployment

  17. ADD CHP is Integrated in Ongoing FEMP Services DA on UESC, Other ESPC, Appropriations Building Retrofits Support Project Facilitators on Super ESPC Projects CHP Procurement Challenge Recommendations OUTREACHWorkshops, tech papers, CHP NTDP Documents Design Assistance on New Construction FEMP CHP Core Team

  18. Example:FEMP DER Workshops • Distributed Energy Workshops • Detailed technical information • Case studies from federal sites • Link federal energy managers with resources • Upcoming FEMP Workshops: -Boston, October 23-25 with USCHPA -Los Angeles, Spring 2003 -Orlando, Aug 17-20: Energy Security, DG & CHP Track at Energy 2003

  19. FEMP ADD CHP Offers Support to Federal Sites • Need estimate of CHP potential? • Quick Screening Service available • Need information on options and performance? • TA to agencies and project facilitators • Need financing? • Assistance to identify potential partners

  20. Free CHP Screening for Federal Sites • Site completes short excel data form • Basic information on energy costs, use and existing equipment • FEMP sends report to site summarizing results of screening analysis • CHP metrics, favorable and unfavorable • If/when is further study merited?

  21. CHP Screening Update:60% Merit Further Study 50% 45% 40% 35% 30% Percent of Screening Sample (96) 25% 20% 15% 10% 5% 0% High Medium Low CHP Potential

  22. CHP Screening Simple payback for 96 Projects (assuming use of 100% of recoverable waste heat) 40% 35% Reported Gas Rates Assumed Rate ($4-$6) 30% 25% Percent of Projects (96) 20% 15% 10% 5% 0% <5 5-10 10-15 15-20 20-25 >25 Simple Payback Period

  23. CHP Economics: Sensitive to Waste Heat Use

  24. Screening Results: • Need to maximize use of waste heat with CHP • Best opportunities are in large, energy intensive sites, hospitals, military bases • Energy security/other upgrades improve economics • Low electric rates and uncertainty over future gas/fuel prices present obstacles

  25. Who Does What? • Private partners are essential--promote, market, sell, finance, implement • ESCOs and Utilities • CHP industry & associations (USCHPA, AGCC, IDEA, etc.) • FEMP offers federal agencies unbiased technical assistance on equipment, design and financing to help agencies secure best-value projects • ADD CHP team passes info on interested sites to DOE ROs, RO’s verify that sites want to interact with partners, RO’s make sure ESCOs have fair opportunity

  26. Federal Agencies Are Embracing CHP As Never Before • Secure, reliable power for mission support • Mitigate electric rate increases • Achieve energy/emission reduction mandates • 90 federal sites are studying, requesting assistance for, or actively developing CHP projects…

  27. Federal Agencies Where TheCHP Action Is

  28. Summary: Call FEMP for Assistance with CHP Projects FEMP’s Team can help agency sites • Determine if they have CHP potential • Understand options with commercial technology • Ensure best-value configurations go into their projects • Help avoid surprises

  29. CHP on the Web: • Funding opportunities, Workshops, Case studies: http://www.eren.doe.gov/femp/techassist/der_resources.html • CHP Screening form, “Analysis of CHP Potential at Federal Sites” (Market Assessment), etc at www.ornl.gov/femp/ or • DOE Websites-FEMP http://www.eren.doe.gov/femp/ Integrated Power Technologies and links: http://www.eren.doe.gov/power/

  30. FEMP CHP Contacts • Contact the Seattle Regional DOE Office: arun.jhaveri@ee.doe.gov or (206) 553-2152 • http://www.eren.doe.gov/femp/financing/femp_services_who.html • DER/CHP Programs at FEMP HQ: Shawn.Herrera@ee.doe.gov (202) 586-1511 • Keith Kline, ORNL FEMP ADD CHP coordinator Klinekl@ornl.gov (865) 574-4230

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