Presentation Transcript

1. ENERGY: Taking Forward The City Region’s Unique Renewable Energy Opportunities Simon Pringle, head of sustainability, BDO (chair) Mikele Brack, director, public sector at GE, on combined heat and power Richard Goodfellow, head of energy and utilities, Addleshaw Goddard and member of the LCR Green Economy Panel John Carolin, director of business development, Biogen
2. Download pt 1 contains slides from: Mikele Brack, director, public sector at GE, on combined heat and power Download pt2 contains slides from: Richard Goodfellow, head of energy and utilities, Addleshaw Goddard and member of the LCR Green Economy Panel John Carolin, director of business development, Biogen
3. Island mode Mikele Brack Director, Public Sector GE Global Operations Distributed Generation: The business case for CHP 11th September 2012
4. Active Distribution Networks Smart(er) grids & meters, energy storage Generation Variable generation Active Demand Large Generation Variable generation Time of use tariffs Demand Distributed Generation Inflexible Generation The Changing UK Energy MarketChanging Generation Mix & Demand Profiles Variable Generation
5. ~75GW The Changing UK Energy MarketWhat does this mean? Tomorrow’s Energy Market Today‘s Energy Market ~110GW Increasingly digital Increase in urban population 15% generation low carbon Regulation to support energy efficiency Carbon pricing Significant coal power plants Predictable demand Low levels of renewable generation 4 GW reserve Generation – 5% 8 GW reserve Generation – 7% 9 GW Coal Retirements 37 GW of renewables on line Residential bills will double Backup generation becoming more important & valuable
6. The Power Delivery Model is Evolving
7. CHP - Cogeneration
8. Fuel flexibility and tailor-made solutions Landfill gas Coal mine gas Sewage gas Associated petroleum gas Island mode Special gases Cogeneration (Natural gas) Greenhouseapplications Biogas
9. Business Benefits Summary - CHP Reduced CO2 Reduced Energy OPEX >85% efficiency: reduces C02 Hot water and building heating provided from waste heat, absorption chillers create cooling Assuming 1 MW: annual CO2 reduction –1k tonne Key part of Government Energy Policy for decentralised energy CCHP: coolth, heat & electricity Energy costs typically 20% Asset payback is now < 4 yrs Guy’s & St Thomas’ (6MW): £1M/pa savings Savings may increase with new government policies around CHP Increased Security Reduced Risk Exposure to rising energy prices Guy’s & Thomas’ savings increased by 30% in last 3 years Assuming energy prices rise faster than interest rates, economics continue to improve Community facilities & developments CCHP becomes primary source, grid secondary, significantly reducing risk of delays from DNO outages CCHP – Combined Cooling Heat & Power – 4 year payback GE Confidential - Distribute to authorized individuals only.
10. Optimising Distributed CHPAdditional Equipment for new or retrofit facility GAS ENGINE & CHP MODULE Virtual Power Plant - STOR Balance of Plant – Back Up Generation, Switchgear and UPS Export Electricity Grid Backup Gas Diesel Backup GE hosted Bureau for the automated management of the customer owned assets. (Communications – via wireless/ethernetetc) Heat for Building Electricity for Building Optimise CHP Design Install Factory & Site Testing Commission Maintain Optimise BOP Design Install optional Factory & Site Testing Commission Maintain Modify existing equipment for synchronisation to grid Switchgear mods Synchronisers Remote Terminal Units (RTUs) for communications Jointly Optimise Overall System Design & Service Package for Critical Plant
11. What is STOR?Harnessing existing back up assets to generate new income Short Term Operating Reserve (STOR) This is the provision of additional active power from generation provided by ‘Asset holders’ who have installed standby capacity. Asset Holders – Capacity …are paid for making their generating capacity available to the National Grid Asset Holders - Generation …are also paid when the generation is utilised by the National Grid (at times of peak load, or where traditional generation has failed). Examples are any industry with currently installed standby generation – eg – water utilities, hospitals, banks, data centres, farming… Aggregator GE Energy manages the aggregation of multiple smaller generation providers (Asset Holders) into 3MW lots which are required by NG.
12. Why is STOR required?Less Predictable Generation & Changing Demand Challenges Scenario STOR New inflexible generation, wind & solar Changing demand patterns from Electric Vehicles Changing customer behaviour Increasing demand for power Hot sunny day, air conditioning on maximum England are in the World Cup Final Emergency mtc -1 GW generation goes off line Grid reserve capacity is now critical Asset Holders spare backup generation sits available Grid sends signal to generation Generation comes on until it is not required Backup generation goes back into standby mode
13. Business Case GE provide STOR income stream GE undertakes service as a turnkey provider, maintain, operate and trade backup asset Annual health check and remedial reporting Annual asset servicing* 24 hour reactive service Electronic Management System Complete maintenance and performance history (from date entered into GE STOR) Contractual and “bid-in” services Also provide guaranteed maintained backup infrastructure