CHP & DG METERING & MONITORING IN NEW YORK STATE

1. CHP & DG METERING & MONITORINGIN NEW YORK STATE CASE STUDIES AND IMPLEMENTATIONS Presented By: STEPHEN STONE, PE DSM ENGINEERING ASSOCIATES, PC smstone@dsmea.com

2. CHP BASICS: WHAT IS CHP? • CHP is the simultaneous production of two or more useful forms of energy, in this instance heat and electrical energy, from a single fuel consuming device. • The type of CHP systems commonly applied to smaller facilities (under 1 MW) use a device (or multiple devices) that contains an engine that drives a generator to produce electricity. The heat (thermal energy) produced by this process is recovered and used to produce hot water, steam or even cooling for the building, instead of being exhausted directly from the engine and the heat lost to the atmosphere.

3. CHP INSTALLATIONS WEST SIDE MANHATTAN THE EAST BRONX CONEY ISLAND THE NORTH BRONX CONEY ISLAND

4. PACKAGED CHP SYSTEMS • IN PACKAGED SYSTEMS THE PRIMARY COMPONENTS ARE PRE-PACKAGED AT THE FACTORY. TYPICALLY THE PACKAGES ARE COMPLETE WITH ALL THE HEAT RECOVERY EQUIPMENT AND GENERATOR CONTROLS. THIS MAKES THEM EASIER AND LESS EXPENSIVE TO INSTALL SINCE THE LABOR CAN BE PERFORMED BY PLUMBING AND ELECTRICAL CONTRACTORS. • THE BASIC COMPONENTS OF A PRE-PACKAGED CHP SYSTEM ARE THE ENGINE, GENERATOR, CONTROL SYSTEM AND HEAT RECOVERY EQUIPMENT. ANCILLARY EQUIPMENT THAT MAY BE REQUIRED ARE PUMPS, ADDITIONAL HEAT EXCHANGERS AND STORAGE TANKS.

5. TYPES OF CHP EQUIPMENT • ALL MICROTURBINES COMPRISE FULLY PACKAGED SYSTEMS BUT CAN BE SELECTED EITHER WITH OR WITHOUT HEAT RECOVERY EQUIPMENT. • SMALL RECIPROCATING ENGINE UNITS CAN BE PURCHASED AS SEPARATE COMPONENTS AND PACKAGED BY THE DESIGNER BUT IT’S FAR EASIER ANDTHE EQUIPMENT IS GENERALLY MORE RELIABLE IF PURCHASED AS A COMPLETE PACKAGE FROM A MANUFACTURER.

6. INGERSOLL-RAND 70 KW MICROTURBINE CHP UNIT

7. COAST INTELLIGEN 60 KW PISTON ENGINE CHP UNIT

8. FIRST INSTALLATIONS OF MODULAR, PARALLEL CONNECTED CHP IN NYC 1985 • INSTALLED IN 7 MULIFAMILY FACILITIES • ALL “THERMALLY CONTROLLED” BUT NOT NECESSARILY BASE LOADED • NO HEAT BALANCING EQUIPMENT TO PROVIDE CONTINUOUS RUNNING • NO REMOTE MONITORING OR CONTROL SYSTEMS. LOCAL MONITORING PERFORMED USING KWH AND SUMMING BTUH METERS

9. RESULTS FROM INITIAL ON-SITE METERING & MONITORING • FUTURE DESIGNS TO USE HEAT BALANCING EQUIPMENT OR BE THERMALLY BASE LOADED TO ALLOW CONTINUOUS RUNNING • FUTURE DESIGNS TO HAVE REMOTE MONITORING & CONTROL SYSTEMS (RMCS) • ALL INSTALLATIONS TO PURCHASE CONTRACTS WITH “CRADLE TO GRAVE” MAINTENANCE WITH ALL INCLUSIVE COSTS BASED ON KWH PRODUCED • MULTIPLE UNITS SHOULD BE UTILIZED TO INCREASE DEMAND SAVINGS

10. VIEWS OF INSTALLATIONS STEVENSON COMMONS SEA RISE II HAZEL TOWERS 10 WEST 66TH STREET

11. CHP INSTALLATIONS IN “PAUSE” MODE FROM LATE 1980’S TO 2000 • ELECTRICAL UTILITIES OPPOSE INSTALLATION OF CHP AS A “COMPETITOR” WHILE FUNDING OTHER FORMS OF DEMAND SIDE MANAGEMENT • UTILITY RATES IN NY SHIFT TO LOW ENERGY COST, HIGH DEMAND CHARGES • LITTLE GOVERNMENT FUNDING TO ENCOURAGE INTEREST. FACILITIES SPEND INVESTMENT DOLLARS ON “FAST PAYBACK” ENERGY CONSERVATION ITEMS SUCH AS HIGH EFFICIENCY LIGHTING

12. CHP INSTALLATIONS BEGIN TO PROLIFERATE IN YEAR 2000 • ELECTRICAL UTILITIES GO OUT OF “PRODUCTION OF ELECTRICTY” BUSINESS AND TRANSFER PROFIT MARGINS TO TRANSPORT OF ELECTRICITY SO NO LONGER OPPOSE CHP • UTILITY RATES IN NY SHIFT TO HIGHER ENERGY COST, MORE MODERATE DEMAND CHARGES • NYSERDA (NY STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY BEGINS TO PROVIDE 50% MATCHING GRANTS TO FUNDING TO ENCOURAGE CHP. • “FAST PAYBACK” ENERGY CONSERVATION ITEMS SUCH AS HIGH EFFICIENCY LIGHTING HAVE ALREADY BEEN INSTALLED BY MANY FACILITIES

13. NYSERDA GRANT PROGRAM MONITORING REQUIREMENTS • REAL TIME MONITORING OF CHP FUEL, USUALLY NATURAL GAS (UTILITY METER W/PULSE OUTPUT) • REAL TIME MONITORING OF ELECTRICAL ENERGY PRODUCED (kW and kWh) • REAL TIME MONITORING OF OVERALL THERMAL OUTPUT OF EQUIPMENT (BTUH) • REAL TIME MONITORING OF RECOVERED HEAT “DUMPED” AND NOT UTILIZED BY THE FACILITY • DSMEA ADDS REAL TIME MONITORING OF THE FACILITY TOTAL kW SO DEMAND SAVINGS CAN BE CALCULATED

14. HOURLY SAVINGS WITH THERMAL BASE LOADED 70 KW CHP • IF THE CHP IS CAPABLE OF UTILIZING 100% OF IT’S WASTE HEAT IN THE FACILITY AND RUNS SUFFICIENTLY WELL TO SAVE DEMAND CHARGES. Without Cogeneration $15/hour Building Electrical and Thermal Requirement 70 kWh @ $10 5 Therms @ $5 $7.00 Energy $3.00 Demand With Cogeneration $8/hour 8 Therms @ $6 Maint. @ $2 0 kWh @ $0 0 Therms @ $0 CHP System 70 kW & 4 Therms/hr Building Electrical and Thermal Requirement

15. HOURLY SAVINGS WITH THERMAL BASE LOADED 70 KW CHP • IF THE CHP IS CAPABLE OF UTILIZING 100% OF IT’S WASTE HEAT IN THE FACILITY AND CANNOT RUN SUFFICIENTLY WELL TO SAVE ANY DEMAND CHARGES. Without Cogeneration $15/hour Building Electrical and Thermal Requirement 70 kWh @ $10 5 Therms @ $5 $7.00 Energy $3.00 Demand With Cogeneration $11/hour 8 Therms @ $6 Maint. @ $2 70 kWh @ $3.00 0 Therms @ $0 CHP System 70 kW & 4 Therms/hr Building Electrical and Thermal Requirement

16. HOURLY SAVINGS WITH THERMAL BASE LOADED 70 KW CHP • IF THE CHP CANNOT UTILIZE ANY OF IT’S WASTE HEAT IN THE FACILITY AND RUNS SUFFICIENTLY WELL TO SAVE DEMAND CHARGES. • . Without Cogeneration $15/hour Building Electrical and Thermal Requirement 70 kWh @ $10 5 Therms @ $5 $7.00 Energy $3.00 Demand With Cogeneration $13/hour 8 Therms @ $6 Maint. @ $2 0 kWh @ $0 5 Therms @ $5 CHP System 70 kW & 4 Therms/hr Building Electrical and Thermal Requirement

17. HOURLY SAVINGS WITH THERMAL BASE LOADED 70 KW CHP • IF THE CHP CANNOT UTILIZE ANY OF IT’S WASTE HEAT IN THE FACILITY AND CANNOT RUN SUFFICIENTLY WELL TO SAVE ANY DEMAND CHARGES. Without Cogeneration $15/hour Building Electrical and Thermal Requirement 70 kWh @ $10 5 Therms @ $5 $7.00 Energy $3.00 Demand With Cogeneration $16/hour!!!! 8 Therms @ $6 Maint. @ $2 70 kWh @ $3.00 5 Therms @ $5 CHP System 70 kW & 4 Therms/hr Building Electrical and Thermal Requirement

18. NEW UTILITY STANDBY CHARGES INSTITUTED BY NEW YORK STATE UTILITIES IN 2003 • TO BE EXEMPT FROM STANDBY CHARGES A FACILITY MUST MEET CERTAIN CAPACITY, POLLUTION AND EFFICIENCY LEVELS. THE EXEMPTION CAN BE REQUESTED IF THE CHP SYSTEM SIZE DOES NOT EXCEED 1 MEGAWATT AND THE OVERALL EFFICIENCY IS AT LEAST 60%. • TO MAINTAIN THE EXEMPTION THE UTILITY REQUIRES MONITORING OF ELECTRICAL ENERGY PRODUCED (kW and kWh); OVERALL THERMAL OUTPUT OF EQUIPMENT (BTUH); AND MONITORING OF RECOVERED HEAT “DUMPED” (BTUH) AND NOT UTILIZED BY THE FACILITY; BE CONTINUALLY RECORDED AND PROVIDED TO THE UTILITY AFTER 3 YEARS OF OPERATION FOR VERIFICATION THAT THE EXEMPTION SHOULD BE CONTINUED.

19. THESE NEW MONITORING AND METERING STANDARDS DICTATED THAT ALL OF OUR CHP DESIGNS NOW BEING INSTALLED WOULD HAVE THE NECESSARY MONITORING EQUIPMENT. • THE FIRST FOUR SYSTEMS WERE ACTIVATED IN 2004 AND THREE OF THEM BEGAN TO PROVIDE IMMEDIATE BENEFITS AS A RESULT OF THE MONITORING.

20. SURPRISINGLY, THE FIRST BENEFICIAL RESULTS WERE NOT FROM BEING ABLE TO ANALYZEEFFICIENCIES BUT RATHER FROM DISCOVERING THAT HEAT EXCHANGERS SUPPLIED WITH THE CHP EQUIPMENT WERE NOT PROPERLY DESIGNED TO MEET THE THERMAL LOADS GENERATED WHEN INTERFACED WITH THE FACILITY LOADS. • IN TWO CASES THIS WAS CAUSING THE CHP EQUIPMENT TO GO OFF-LINE WHEN BUILDING LOADS WOULD HAVE SUPPORTED CONTINUOUS OPERATION. IN ANOTHER CASE IT WAS RUNNING CONTINUOUSLY BUT CAUSING THE SYSTEM TO “DUMP’ HEAT WHEN IT COULD HAVE BEEN UTILIZED BY THE FACILITY. • BOTH INSTANCES REDUCED THE COST SAVING EFFECT OF THE CHP SYSTEMS.

21. BENEFICIAL RESULTS OF THE METERING AND MONITORING • THE INFORMATION PROVIDED BY THE NEW METERING AND MONITORING EQUIPMENT RESULTED IN AN UPGRADED HEAT EXCHANGER DESIGN. • THE INSTALLATION OF THE NEW HEAT EXCHANGERS HAS ENABLED MAXIMIZING THE ENERGY SAVINGS AND ENERGY COST SAVINGS AT THREE SITES.