New York State Energy R & D Authority Addressing Energy, Economic, and Environmental Priorities

1. Is CHP Right for Me? New York State Energy R & D Authority Addressing Energy, Economic, and Environmental Priorities

2. What is DG? What is CHP? Benefits of DG/CHP. Available technologies/equipment. Issues/hurdles for implementation. Overview

3. Electric power generation close to the load. Small-scale relative to central-plants. Can use fossil fuel – natural gas, diesel, propane…, or renewable energy – solar, wind, landfill/digester gas… What is Distributed Generation?

4. Premium Power – reliability, power quality. Backup Power – reliability. Peak Shaving – peak demand reduction. Base Load/CHP – cost reduction. DG Applications

5. Combined Heat and Power (CHP) CHP: Onsite coincident production and use of electrical or mechanical power and thermal energy.

6. DG/CHP Distributed Generation (DG) Commercial BP Steam Turbine Peak Shaving Micro-turbine Residential Fuel Cell Commercial IC Engine Boiler Power Combined Heat & Power (CHP) Heat

7. Capacity constrained, high electric demands. High thermal (steam, hot water, direct heat, cooling) demands. Coincident thermal and electric demands. Extended operating hours. Access to fuels (byproducts, natural gas). Where Does DG/CHP Make Sense?

8. Fuel “in” at one place, multiple benefits “out” yields financial savings. Diversification of energy supply sources yields greater reliability ====> Energy Security. Return on investment: DG/CHP ====> every day. Emergency generator ====> sporadically. Benefits of DG/CHP

9. Fuel “in” at one place,multiple benefits “out” HEATING: Defroster. COOLING:Air Conditioner. POWER (Electrical): Alternator Generates DC Power. POWER (Locomotion): Mechanical (Rotary) Shaft Power.

10. Fuel “in” at one place,multiple benefits “out”

11. DG-CHP Generating Options Gas Turbines Internal Combustion Engines Micro-Turbines Fuel Cells Steam Turbines

12. First: identify your electric & thermal needs. Next: match needs to a type of technology. Example: Engine - versus - Microturbine Electrical efficiency: Engine ~ 35%, Microturbine ~25% Byproduct heat: Engine high- & low-grade, Microturbine all high-grade Other considerations: familiarity of technology, dump radiator, emissions Finally: select an equipment vendor. Choice of Equipment

13. Pre-engineered skid-mounted systems. A fully-integrated car produced on an assembly line is likely to be more reliable, less expensive, and “running” sooner than buying the individual parts and having someone assemble it for you. Likewise with CHP (not quite “plug-and-play” yet). Major efforts by USDOE recently. Evolving Equipment

14. Interconnection with utility grid/tariffs. Synchronous - versus - Induction. Air permit. Footprint/available space. Financing. DG/CHP Issues/Hurdles

15. Coincident thermal and electric demands. Load Profiles Energy Demand Midnight Noon Midnight

16. Seasonal variations. Load Profiles Energy Demand January June July December

17. Load shaping via absorption cooling. Load Profiles Energy Demand January June July December

18. Capacity Factor CF = 1 100% output for 100% of time CF = 0.75 100% output for 50% of time Plus 50% output for 50% of time CF = 0.5 100% output for 50% of time CF = 0.5 50% output for 100% of time CF = 0.3 100% output for 10 hours/day (8am – 6pm) for 5 days/week (M-F) for 52 weeks/year DG Electric Power Generation Costs Generation Cost ($/kWh) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Capacity Factor Capital Cost Fuel Cost O&M Cost Total Cost

19. Electric Load Profile Midnight Noon Midnight

20. Electric Load Profile Midnight Noon Midnight 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

21. Electric Load Profile 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

22. Electric Load Profile There are 8,760 hours per year Electric Demand 4,800 8,760 500 2,000

23. CHP Energy Star Appliances Programmable Controls & Thermostats Energy Efficient Lighting Weatherization Do the Easy Things First

24. Energy Audits which include ‘quick screen’ for CHP. Site-specific CHP feasibility studies. CHP hardware installation. NYSERDA Funding Programs

25. There are various quick screening tools in development or use by NYSERDA, local gas utilities, & UMASS Amherst. The NYSERDA tools are typically incorporated into a more comprehensive energy efficient scope of work. Generally they analyze the cost-effectiveness of CHP to determine whether a building should pursue a detailed feasibility study. Quick Screening for CHP

26. The Assisted Multifamily Program provides whole-building energy efficiency to low- to moderate-income properties of > 4 units. AMP provides a complete energy assessment, financial packaging including a NYSERDA grant, & construction oversight, in addition to 3-year monitoring & consumption analysis. R&D to Implementation - AMP

27. CHP must be considered by the auditor as a program requirement using the quick screening tool. If the analysis warrants it, the cost for a feasibility study AND an installed CHP system are packaged into the overall deal. R&D to Implementation - AMP

28. If a viable financial package cannot be reached, AMP will consider additional funding from the CHP PON administered by R&D, otherwise the costs are borne by the owner and AMP. AMP typically packages deals at a 4:1 ratio of owner investment to NYSERDA funds. R&D to Implementation - AMP

29. Chart does not include Co-op City CHP project at a cost of $7.5 million with an SIR = 5.5. Current Projects

30. Systems are sized to maximize needs & restrictions related to the electric peak & baseload as well as the daily peak DHW load using additional DHW storage if necessary. Estimated savings range from 9,232 to 52,002,000 kWh annually. Majority of systems are 30-60kW systems. Current Projects

31. Auditor enters consumption & utility data into the tool. AMP Screening Tool

32. Cost-effectiveness of the project based on electric load, DHW load, & selected CHP equipment. AMP Screening Tool

33. The current AMP quick screening tool is being applied retroactively to some of our multifamily CHP projects to test its accuracy. A continuing analysis will be conducted in each AMP project to compare the tool’s projections to those of the eventual feasibility study and ultimately to actual performance of installed projects. Testing & Verification

34. Northeast Regional Combined Cooling, Heating and Power Applications Center Mission: Facilitate the technology transfer and deployment of advanced CHP. Region: 7 state region of Northeast USA. Services: Education, outreach, and technical assistance. Constituency: CHP for both buildings and industrial settings. Guidance: State Advisory Board, NECHPI. DOE Funding $300,000 Center Co-Directorships Pace Energy Project UMass Center for Energy Efficiency and Renewable Energy $300,000 DOE Funding for NERAC Special Projects in New York - FY 2003 www.northeastchp.org

35. www.eere.energy.gov/de/technologies/euii_chp_app_rac.shtml

36. Energy Audits which include ‘quick screen’ for CHP. Site-specific CHP feasibility studies. CHP hardware installation. NYSERDA Funding Programs

37. Competitive Solicitation $250,000 in available funding 50% cost share up to $50,000 December 1, 2004 Deadline PON 831 CHP & Renewable Generation Technical Assistance

38. Study must include heat recovery At minimum, 75% of electricity generated would be used on-site 20 MW capacity for CHP applications Limitations

39. Load profile analysis Determination of CHP efficiency Site information Economic evaluation Tariff impacts and interconnection issues Permitting Reliability Study Components

40. Detailed analysis of load profiles What are the thermal demands of the heat sinks? When is the heat used? Are the thermal and electrical loads coincidental? Load Profile

41. Seasonal variations. Load Profiles Energy Demand January June July December

42. Coincident thermal and electric demands. Load Profiles Energy Demand Midnight Noon Midnight

43. Annual Thermal utilization Annual fuel conversion efficiency Heat recovered + Electricity generated Fuel input NYSERDA target is 60% System Efficiency

44. Floor Plan Fuel requirements/ availability Construction schedule Existing air permit Site Information

45. Life Cycle Cost analysis Operational costs Maintenance Tariff impacts Detailed capital cost breakdown Economic Evaluation

46. Impact of CHP on existing tariffs For example CHP exemption in ConEd territory Detailed discussion of any new applicable tariff impacts Grid interconnection issues Standard interconnection under 300kVa Tariff Impacts & Interconnection

47. Environmental permits EPA DEP DEC Detailed emission inventory Building permits Special fuel line requirements Permitting

48. Estimated downtime Scheduled Unplanned Affect on customer’s core business Reliability & Availability

49. Large NYC hospital 7.5 MW gas turbine $4,000,000 annual savings $20,000,000 estimated installation cost 75% Annual Fuel Conversion Efficiency 37,500 pound reduction of NOx Example

50. Energy Audits which include ‘quick screen’ for CHP. Site-specific CHP feasibility studies. CHP hardware installation. NYSERDA Funding Programs