chp in hospitals – improving resilience and lowering ... in hospitals...chp and other distributed...
TRANSCRIPT
CHP in Hospitals –Improving Resilience and
Lowering Energy Costs
Shawn Jones – Pacific CHP TAPGavin Dillingham, PhD –Southwest CHP TAP
December 7, 2016
Agenda CHP Overview – Pacific CHP TAP
CHP is a Great Fit for Hospitals – Pacific CHP TAP
CHP in Hospitals Examples – Pacific CHP TAP
CHP Deployment - Industry Perspective – Solar Turbines
CHP Project Services from DOE CHP TAPs- SW CHP TAP
Q&A
Thank You
U.S. DOE CHP Deployment Program Market Analysis and Tracking – Supporting analyses of CHP market
opportunities in diverse markets including industrial, federal, institutional, and commercial sectors.
Technical Assistance through DOE's CHP Technical Assistance Partnerships (CHP TAPs) – Promote and assist in transforming the market for CHP, waste heat to power, and district energy with CHP throughout the United States
Just Launched Combined Heat and Power (CHP) for Resiliency Accelerator - Collaborating with Partners to support consideration of CHP and other distributed generation solutions for critical infrastructure resiliency planning at the state, local, and utility levels
Packaged CHP System eMarket Initiative (under development) -
Increase CHP deployment in underdeveloped markets with standardized, and warrantied packaged CHP systems driven by strong end-user engagement via Market Mover Partners, such as cities, states, and utilities
www.energy.gov/chp
CHP Technical Assistance Partnerships
Education and OutreachProviding information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.
Technical AssistanceProviding technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.
Market Opportunity AnalysisSupporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors
CHP Overview
CHP: A Key Part of Our Energy Future Form of Distributed Generation
(DG)
An integrated system
Located at or near a building / facility
Provides at least a portion of the electrical load and
Uses thermal energy for:
o Space Heating / Cooling
o Process Heating / Cooling
o Dehumidification
CHP provides efficient, clean, reliable, affordable energy –
today and for the future.
Source: www.energy.gov/chp
Fuel 100 units
CHP75% efficiency
Total Efficiency~ 75%
Fuel
Fuel
30 units
Power Plant32% efficiency(Including T&D)
Onsite Boiler80% efficiency
45 units
Electricity
Heat
Total Efficiency~ 50%
94 units
56 units
30 to 55% less greenhouse gas emissions
CHP Recaptures Heat of Generation, Increasing Energy Efficiency, and Reducing GHGs
Common CHP Technologies
50 kW 100 kW 1 MW 10 MW 20 MW
Fuel Cells
Gas TurbinesMicroturbines
Reciprocating Engines
Steam Turbines
CHP System Schematic
Prime MoverReciprocating EnginesCombustion Turbines
MicroturbinesSteam Turbines
Fuel CellsORC turbine
ElectricityOn-Site Consumption
Sold to Utility
FuelNatural Gas
PropaneBiogas
Landfill GasCoal
SteamWaste Products
Others
Generator
Heat Exchanger
ThermalSteam
Hot WaterSpace Heating
Process HeatingSpace Cooling
Process CoolingRefrigeration
Dehumidification
What Are the Benefits of CHP? CHP is more efficient than separate generation
of electricity and heating/cooling
Higher efficiency translates to lower operating costs (but requires capital investment)
Higher efficiency reduces emissions of pollutants
CHP can also increase energy reliability and enhance power quality
Critical Infrastructure and Resiliency Benefits of CHP
“Critical infrastructure” refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety.”Patriot Act of 2001 Section 1016 (e)
Applications: Hospitals and healthcare centers Water / wastewater treatment plants Police, fire, and public safety Centers of refuge (often schools or
universities) Military/National Security Food distribution facilities Telecom and data centers
CHP (if properly configured):
Offers the opportunity to improve Critical Infrastructure (CI) resiliency
Can continue to operate, providing uninterrupted supply of electricity and heating/cooling to the host facility
Emerging National Drivers for CHP Benefits of CHP recognized by
policymakerso State Portfolio Standards (RPS, EEPS), Tax Incentives,
Grants, standby rates, etc.
Favorable outlook for natural gas supply and price in North America
Opportunities created by environmental drivers
Utilities finding economic value Energy resiliency and critical
infrastructure
DOE / EPA CHP Report (8/2012)
http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf
CHP Today in the United States
Source: DOE CHP Installation Database (U.S. installations as of December 31, 2015)
82.7 GW of installed CHP at over 4,400 industrial and commercial facilities
8% of U.S. Electric Generating Capacity; 14% of Manufacturing
Avoids more than 1.8 quadrillion Btus of fuel consumption annually
Avoids 241 million metric tons of CO2 compared to separate production
Finding the Best Candidates:Some or All of These Characteristics
High and constant thermal load Favorable spark spread Need for high reliability Concern over future electricity prices Interest in reducing environmental impact Existing central plant Planned facility expansion or new construction; or
equipment replacement within the next 3-5 years
CHP in Hospitals
Practical◦ Hospitals with installed CHP systems experience reduced operating costs and higher reliability of
continued service
Proven◦ Over 200 hospitals and medical campuses nationwide currently operate CHP systems
Economical◦ Efficient CHP systems can lead to attractive investments with electric and thermal energy savings,
especially in areas with high electric rates and lower natural gas costs
Reliable◦ In contrast to emergency generators that may not able to operate as expected over the full duration
of an outage, several facilities with CHP were able to maintain both power and heat during storms and other climate events, providing a “dynamic asset” with an economic return running every day
Clean◦ High efficiency, low emissions CHP systems have been recognized as the centerpiece of sustainability
strategies at premier hospital and university campuses.◦ A hospital can reduce its greenhouse gas impacts by almost 20% with a single investment in high
efficiency CHP
Hospitals are Ideal Candidates for CHP
CHP is PRACTICAL for Hospitals 24/7 operations Significant and coincidental needs for electric
power, heating, and cooling Requirement for high power quality and
reliability of continued service Hospitals with installed CHP systems
experience reduced operating costs
Existing CHP in U.S. Hospitals201 facilities generating 847 MW
Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2015)
CHP in Hospitals
Source: DOE CHP Installation Database (December 2015) and US DOE CHP Technical Potential (March 2016)
0
100
200
300
400
500
600
700
800
900
Capa
city
(MW
)
Year
CHP Capacity in US Hospitals
Capacity(MW)
201 hospitals have CHP, totaling 846.5 MW of capacity.
Further technical potential totaling 6,240 MW of generating capacity
CHP is PROVEN for Hospitals201 CHP Sites with 846.5 MW Generating Capacity
Fuel Type Sites MWBiomass 10 13.4Coal 2 10.0Natural Gas 164 725.3Oil 13 37.1Waste 8 57.5Wood 3 1.8Other 1 1.5Total 201 846.5
Size Range Sites MW< 1 MW 91 32.61 – 4.9 MW 75 193.95 – 19.9 MW 27 239.520 – 49.9 MW 5 157.750 – 99.9 MW 3 222.8Total 201 846.5
Technology Sites MWBackpressure Steam Turbine 6 2.4Boiler/Steam Turbine 21 205.8Combined Cycle 9 208.5Combustion Turbine 39 272.0Reciprocating Engine 110 148.9Fuel Cell 5 3.2Microturbine 10 4.2Other 1 1.5Total 201 846.5
22
Table: Size RangeTable: Prime Mover Technology
Table: Fuel Type
Source: DOE/ICF CHP Installation Database (December 2015)
CHP is PROVEN for Hospitals44 CHP Sites and 177 MW of Capacity in CA Alone
Source: DOE/ICF CHP Installation Database (December 2015)
0
20
40
60
80
100
120
140
160
180
200
CA NY MA PA TX RI MN CT FL IL MD NJ
Site
s/Ca
paci
ty
State
CHP Application in US Hospitals by State
# of Sites
Capacity(MW)
Technical Potential for Hospitals
50-500 kW .5-1 MW 1-5 MW 5-20 MW >20 MWNumber of Sites 2946 1177 2001 112 4Capacity (MW) 716 815 4124 758 900
2946
1177
2001
112
4
716 81
5
4124
758 90
0
US TECHNICAL POTENTIAL FOR HOSPITALSNumber of Sites Capacity (MW)
Pacific CHP TAP Hospital Technical Potential
- 50 100 150 200 250 300 350 400 450
Nevada
Hawaii
California
Number of Potential CHP Sites
CHP Technical Potenital in Hospitals
50-500 kW 0.5 - 1 MW 1 - 5 MW
489 Potential CHP Sites and 624 MW of Capacity
Southwest CHP TAP Hospital Technical Potential
1.093 Potential CHP Sites and 1,140 MW of Capacity
- 100 200 300 400 500 600 700
Wyoming
Utah
Texas
Oklahoma
New Mexico
Colorado
Arizona
Number of Potential CHP Sites
CHP Technical Potenital in Hospitals
50-500 kW 0.5 - 1 MW 1 - 5 MW
Sizes TYPICALLY range from 100s of kWs to several MWs (depending on facility size and usually below 10 MW)
Common CHP prime mover types in hospitals are reciprocating engines, combustion turbines, and/or steam turbines (mostly fueled by natural gas)
Most hospital CHP systems are sized for the thermal load requirements with the resulting electric power generated used to first offset the power purchased from the utility grid (excess power can be sold to the utility)
CHP systems do not replace the need for emergency generator sets to meet the “life critical loads” of a hospital
◦ Can reduce the number and capacity of the emergency generators
◦ Can increase the total electric reliability for the hospital
Typical Hospital CHP System Configurations
Source: http://www.midwestcleanenergy.org/Archive/pdfs/USHospitalGuidebook_111907.pdf
Healthcare organizations spend > $6.5B annually
Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals
For-profit hospitals can raise their earnings per share 1¢ by reducing energy costs just 5%
By being more energy efficiency and saving money, hospitals can reinvest savings from improved energy performance
201 hospitals operate CHP systems today
7 of Top 16 U.S. hospitals use CHP according to US News
CHP is ECONOMICAL for Hospitals
1) ENERGY STAR - http://www.energystar.gov/ia/partners/publications/pubdocs/Healthcare.pdf2) DOE CHP Installation Database3) US News’ 2013-2014 Honor Roll of the Nation’s Top 18 Hospitals:(John Hopkins, Mass. General, Mayo Clinic, Cleveland Clinic, NY Presbyterian, NYU Langone, Indiana University)
Direct Ownership Financing Optionso Cash paymentso Bank loanso Bond financing
Third Party Ownership (TPO) Optionso Lease Financing (a traditional method of financing equipment – “off-balance sheet financing”)o Energy Service Agreements (ESAs) o Power Purchase Agreements (PPAs)
Financing Options for Hospitals
Source: http://www.greenribboncommission.org/downloads/CHP_Guide_091013.pdf
High efficiency, low emissions CHP systems have been recognized as the centerpiece of sustainability strategies at premier hospital and university campuses.
A hospital can reduce its greenhouse gas emissions by almost 20% with a single investment in high efficiency CHP
CHP is CLEAN
Source: http://www.midwestcleanenergy.org/Archive/pdfs/USHospitalGuidebook_111907.pdf
CHP is RELIABLE Recent extreme weather events have turned attention to
energy reliability and business continuity, disrupting electric distribution systems and exposing fragilities in our back-up power systems
Emergency generators may not be able to operate as expected over the full duration of an outage, several facilities with CHP systems were able to maintain both power and heat during these storms and other events, providing a “dynamic asset” with an economic return running every day
Designing for ReliabilityTwo Generator Types Induction
◦ Requires external power source to operate◦ When grid goes down,
generator goes down◦ Less Complicated and Costly
to Interconnect Synchronous (preferred)
◦ Self Excited (Does not need grid to operate)
◦ Generator can operate thru Grid outages
◦ More Complicated and Costly to Interconnect
Uninterrupted Operation Requirements Black start capability
◦ Allows the system to start up independently from the grid
Generators capable of grid-independent operation◦ The system must be able to operate
without grid power signal Ample Carrying Capacity
◦ System size must match critical loads Parallel utility interconnection
and switch gear controls◦ The system must be able to
disconnect from the grid, support critical loads, and reconnect after an event
Emergency Generators Minimum requirement, sized to meet
“life critical loads Hospitals are installing larger
generators to protect more and more hospital loads
Diesel fueled – high emissions & limited amount of stored fuel (hours versus days of operation)
Not designed or capable of continuous operation for long periods of time – rarely operates
Financial payback only in times of emergency
Emergency Generators vs. CHP Systems
CHP Systems
Sized to meet thermal or electric loads – operates continuously to meet those loads
Natural gas fueled – low emissions
Does not replace emergency generator set for “life critical” loads
Reduces overall size and capacity of emergency generator sets
Emergency generator sets become backup to the backup; much higher reliability
Good financial return
CHP Projects in Hospitals
Project Snapshot: Reliability
San Diego VA Hospital San Diego, CA
Capacity: 6.8 MW Fuel: Natural GasPrime Mover: 4.6 MW Solar Turbines Mercury™ 50 gas turbine, absorption chiller Installed: 2005Total Project Cost: $4 M Yearly Energy Savings: $1-1.5 M
“The Mercury 50 gas turbine was an ideal fit for the hospital because of its recuperated exhaust heat design. I’ve been very impressed with the reliability and I’ve been very happy with the system.”
- Bill Dias, Assistant Chief/Operations Engineer at VASDHS
Project Snapshot: Utilities Expansion
Northwest Community HospitalArlington Heights, IL
Capacity: 4.6 MW Fuel: Natural GasPrime Mover: Recip. EnginesInstalled: 1997 / 2005
"We said, ‘Well, if we're going to centralize it all, doesn't it make sense to do a CHP—and generate our own electricity, to reduce our demand load, and then capture the heat of those engines and utilize all that for heating and/or cooling?' "
Charlie Stevenson, Director of Plant OperationsNorthwest Community Hospital
"The beauty of this CHP to him was not simply the return for the cogen system, but the fact that these savings would pay for the central energy plant too.”
Joe Sinclair, Ballard Engineering
Project Snapshot: Waste Heat Recovery
Kaiser Permanente Vacaville Medical CenterVacaville, CA
Capacity: 3 MW Fuel: Natural GasPrime Mover: 750 kW (Twelve 65-kw Capstone C-65 microturbines with heat recovery)Installed: 2009Total Project Cost: $1.7 M Yearly Energy Savings: $500,000+
All 12 microturbines operate 24 hours per day, seven days a week. The medical center load is large enough even at low load conditions to support the need for all the turbines.
Project Snapshot: Disaster Relief, Hurricane Katrina
Mississippi Baptist Medical CenterJackson, MS
Capacity: 4.2 MW Fuel: Natural GasPrime Mover: Combustion TurbinesInstalled: 1991
The independence provided by the CHP system allowed MBMC to continue operation relatively unaffected during
Hurricane Katrina in 2005. As soon as power reliability became a factor MBMC performed a load shed, switched off
of the power grid, and continued operation in turbine-only mode. MBMC was the only hospital in the Jackson metro
area to remain nearly 100% operational. After approximately 50 hours, the power reliability issue was addressed
and MBMC connected to the power grid and returned to normal operation.
Project Snapshot: Thermal Savings
St. Helena HospitalSt. Helena, CA
Capacity: 1.2 MW Fuel: Natural GasPrime Mover: 400-kW phosphoric acid fuel cell unit (PureCell Model 400)Installed: 2010Total Project Cost: $2.15 M Yearly Energy Savings: $170,000+
“Fuel cells are a great choice for businesses that have 24/7 operational needs and the capability to maximize utilization of both the power and the heat generated.“
- Stan Tempchin, Director of Facilities
Project Snapshot: LEED Platinum
Dell Children’s Medical Center of Central TexasAustin, TX
Capacity: 4.6 MW Fuel: Natural GasPrime Mover: Combustion TurbinesInstalled: 2009
First healthcare facility in the world to achieve a LEED Platinum certification by the U.S. Green Building Council (USGBC)
Solar Turbines
How to Implement a CHP Project with the Help of the CHP TAP
CHP TAP Technical Assistance
High level assessment to determine if site shows potential for a CHP project◦ Qualitative Analysis
– Energy Consumption & Costs
– Estimated Energy Savings & Payback
– CHP System Sizing
◦ Quantitative Analysis– Understanding project drivers
– Understanding site peculiarities
DOE TAP CHP Screening AnalysisAnnual Energy Consumption
Base Case CHP Case
Purchased Electricty, kWh 88,250,160 5,534,150 Generated Electricity, kWh 0 82,716,010 On-site Thermal, MMBtu 426,000 18,872 CHP Thermal, MMBtu 0 407,128 Boiler Fuel, MMBtu 532,500 23,590 CHP Fuel, MMBtu 0 969,845 Total Fuel, MMBtu 532,500 993,435
Annual Operating Costs
Purchased Electricity, $ $7,060,013 $1,104,460 Standby Power, $ $0 $0 On-site Thermal Fuel, $ $3,195,000 $141,539 CHP Fuel, $ $0 $5,819,071 Incremental O&M, $ $0 $744,444
Total Operating Costs, $ $10,255,013 $7,809,514
Simple Payback
Annual Operating Savings, $ $2,445,499 Total Installed Costs, $/kW $1,400 Total Installed Costs, $/k $12,990,000 Simple Payback, Years 5.3
Operating Costs to Generate
Fuel Costs, $/kWh $0.070 Thermal Credit, $/kWh ($0.037) Incremental O&M, $/kWh $0.009
Total Operating Costs to Generate, $/kWh $0.042
Do you pay more than $.06/kWh on average for electricity (including generation, transmission and distribution)?
Are you concerned about the impact of current or future energy costs on your operations?
Are you concerned about power reliability? What if the power goes out for 5 minutes… for 1 hour?
Does your facility operate for more than 3,000 hours per year? Do you have thermal loads throughout the year?
(including steam, hot water, chilled water, hot air, etc.)
Screening Questions
Does your facility have an existing central plant? Do you expect to replace, upgrade, or retrofit central plant
equipment within the next 3-5 years? Do you anticipate a facility expansion or new construction project within
the next 3-5 years? Have you already implemented energy efficiency measures and
still have high energy costs? Are you interested in reducing your facility's impact on the
environment? Do you have access to on-site or nearby biomass resources?
(i.e., landfill gas, farm manure, food processing waste, etc.)
Screening Questions (cont.)
CHP Project ResourcesGood Primer Report DOE CHP Technologies
Fact Sheet Series
www.eere.energy.gov/chpwww.energy.gov/chp-technologies
CHP Project ResourcesDOE Project Profile Database
(150+ case studies)
www.eere.energy.gov/chp-profiles
DOE Database of Incentives & Policies (DSIRE)
www.dsireusa.org
CHP Project ResourcesDOE CHP Installation Database
(List of all known CHP systems in U.S.)
No-Cost CHP Screening and Other Technical Assistance from
the CHP TAP
www.eere.energy.gov/chp-installs www.eere.energy.gov/chp-contacts
Next StepsResources are available to assist in developing CHP Projects.
Contact the DOE CHP TAPs to:
Perform CHP Qualification Screening for a particular hospital
Identify existing CHP in hospital sites for new Project Profiles
Need an unbiased 3rd Party Review of a CHP proposal
Request a feasibility study to determine CHP sizing, savings
CHP plays a key role in hospitals by providing energy savings, reduced emissions, and opportunities for resiliency
Emerging economic and environmental drivers are creating new opportunities to evaluate CHP and numerous examples exist to learn more about how other hospitals have incorporated CHP
Engage with the US DOE CHP TAPs to learn more about the technical assistance offerings in evaluating CHP for your facility
Summary
Questions??Shawn Jones, Project ManagerDOE Pacific CHP [email protected]
Gavin Dillingham, PhD, DirectorDOE Southwest CHP [email protected]
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