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“Selling” the concept of CHP and advanced metering – garnering stakeholder buy-in

Nag Patibandla New York State Energy Research and Development Authority Albany, New York. “Selling” the concept of CHP and advanced metering – garnering stakeholder buy-in. METCOGEN, 6-8 October 2004, New York. New York’s DG (/CHP) Incentives. $15 Million SBC Funds through NYSERDA

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“Selling” the concept of CHP and advanced metering – garnering stakeholder buy-in

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  1. Nag Patibandla New York State Energy Research and Development Authority Albany, New York “Selling” the concept of CHP and advanced metering – garnering stakeholder buy-in METCOGEN, 6-8 October 2004, New York

  2. New York’s DG (/CHP) Incentives • $15 Million SBC Funds through NYSERDA • Standby Service Rates: CHP Exemptions and Phase-ins • Std. Interconnection Requirements (in Update) • Electric Utility DG Pilot Program (Grid Upgrade vs. DG) • DG Gas Distribution Prices + Gas Utility DG Programs • State Education Dept Funding for K-12 Schools • NYC EDC – Energy Cost Savings Program • Elimination of flex-rate deterrent (in development) • Air Emissions Standards (in development) • Emissions Reduction Credits (in development)

  3. NYSERDA’s DG-CHP Program • Develop & Demonstrate Innovative DG Technologies & CHP Applications • Support site-specific and sector wide feasibility studies and replication • Monitor Performance and Reduce Hurdles through Shared Knowledge • Install Megawatts of Generation Capacity • Funding: Cost share of 30 – 60% of Project cost subject to a cap of $1 million per project

  4. Capacity constrained-High electric demands High thermal (steam, hot water, or direct heat) demands Coincident thermal and electric demands Extended operating hours Access to fuels (byproducts, natural gas) 30% CHP – On Peak Only Operation Grid Capacity Utilized at 60% Where Does DG/CHP Make Sense On Customer Side On Utility Side

  5. Cumulative CHP Market Penetration Projection by 2012 (MW)

  6. CHP Benefits At Full Market Penetration

  7. NYSERDA’s DG-CHP Demonstration Program Installations (kW)

  8. Two 60 kW Capstones Peak Reduction: 300 kW Application: Swimming Pool Power to water pumps Heat to electric water heaters Funding: NYSERDA: $310000 + SUNY & Grester Trane: $310,000 Status: Currently Operational Savings: 2000 MWh/yr, $73,000 per year SUNY Buffalo/Grester Trane

  9. Two 750 kW Natural gas Recip. engines Heat recovered for space and DHW heating and a 300 ton absorber NYSERDA: $500,000; GRIA $2,000,000 Status: Fully Operational. Greater Rochester International Airport

  10. Utilize one Capstone 60 kW Microturbine. Integrated with Munters DryCool Desiccant. Annual energy savings of over $50,000 with a six-year payback Good opportunity for technology transfer. Lessons in Interconnection. Waldbaums Supermarket

  11. Building has been converted from the headquarters of Bulova Watch Co. to a state of the art office building. Utilizing (2) 350-ton gas engine driven chillers. Peak Demand Reduction of 526 kW Excellent thermal efficiency. Bulova @ LaGuardia Airport

  12. Eight UTC PAFC Fuel Cells at Four Municipal Waste Water Treatment Facilities in New York City (NYCDEP) Heat Recovered to Support Anearobic Digester Reduced On-site Emissions by Eliminating Flare NYSERDA: $1,000,000; NYPA: $12,000,000 Four currently Operational. Fuel Cells at WWTP in NYC

  13. Regional CHP Activity - Lack of similar CHP (/DG) interest among various states Standby Rates - NYS PSC developed standby tariffs with CHP exemptions and phase-ins, other states like MA are in the process of developing tariffs Emissions Standard - NYS DEC is in the process of developing air emissions standards. Others ? Interconnection – NYS is in the process of updating its SIR to 1 MW and to networks Utility Buy-In - Grid support, congestion mitigation, alternative to grid expansion/upgrade, utility ownership or access to excess capacity DG-CHP Challenges

  14. Net Metering • Net metering turns the electric meter backwards when the DG is producing energy in excess of the demand. • Enables the use DG to offset consumption over a billing period. • Customers receive retail prices for the electricity produced and used onsite. • Without net metering, a separate meter measures electricity that flows back to the utility typically at a wholesale price that is much lower than the retail rate.

  15. Net Metering • In 2002, Governor Pataki signed a farm net metering law that required utilities to provide net metering to farms that generate electricity from methane wastes. • 400 kVA or smaller, 80% methane waste, on farm-uses • typical farmer can save about $6,000 a year in energy costs • Residential PV systems smaller than 10 kW enjoy net metering benefits also.

  16. New York’s CHP Program Summary • Supporting 96 demo projects, 50+ feasibility/Tech Trans. studies • NYSERDA funding of $47 million (in ~$220 M) • 27 Projects with a total installed capacity of 12 MW in operation • Expect to reach 20 MW of capacity the end of 2004 (peak demand reduction of 26 MW) • Additional capacities of 40 MW and 48 MW in ’05 and ’06, respectively • CHP applications in industrial, agricultural, municipal, institutional, commercial, and residential sectors • Field-Performance: Monitoring and Data Collection is Underway

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