Combined Heat and Power (CHP) – Opportunities for

Critical Infrastructure

Satish Ravindran, P.E., CEMHARC

July 21, 2016Community Efficiency Leaders Workshop #2

Outline

• CHP Overview

• CHP to Support Critical Infrastructure

• CHP Project Resources

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:

– Space Heating / Cooling

– Process Heating / Cooling

– 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

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CHP System Schematic

Prime MoverReciprocating EnginesCombustion Turbines

MicroturbinesSteam Turbines

Fuel Cells

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

Common CHP Technologies

50 kW 100 kW 1 MW10 MW 20 MW

Fuel Cells

Gas TurbinesMicroturbines

Reciprocating Engines

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

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CHP Today in the United States

• 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

Source: DOE CHP Installation Database (U.S. installations as of December 31, 2014)

Infrastructure Resilience

• A key principle of disaster preparedness and planning

• Ability to maintain operation despite a devastating event – business continuity

• CHP (if properly configured): Offers the opportunity to improve CI resiliency Can continue to operate, providing uninterrupted

supply of electricity and heating/cooling to the host facility

Critical Infrastructure and Resilience 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 Design for Reliability

• One estimate states that over $150 billion per year is lost by U.S. industries due to electric network reliability problems

• CHP systems designed for reliability will incur additional costs ($45 -$170/kW depending on complexity of system)

• These additional costs however provide important reliability benefits to the site, and to the community at large

Source: https://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf

CHP versus Backup Generation

• CHP provides continuous benefits to host facilities, rather than just during emergencies

• CHP can result in daily operating cost savings

• CHP offsets capital costs associated with investments in traditional backup power

CHP Backup Generation

System Performance

• Designed and maintained to run continuously• Improved performance reliability

• Only used during emergencies

Fuel Supply • Natural gas infrastructure typicallynot impacted by severe weather

• Limited by on-site storage

Transition from Grid Power

• May be configured for “flicker-free” transfer from grid connection to “island mode”

• Lag time may impact critical system performance

Energy Supply• Electricity• Thermal (heating, cooling, hot/chilled water)

• Electricity

Emissions

• Typically natural gas fueled• Achieve greater system efficiencies (80%)• Lower emissions

• Commonly burn diesel fuel

CHP versus Backup Generation

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 the grid power signal

• Ample carrying capacity System size must match critical loads

• Parallel utility interconnection and switchgear controls The system must be able to disconnect from the grid, support critical loads, and

reconnect after an event

Source: https://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf

DOE Report on CHPin Critical Infrastructure

• Provides context for CHP in critical infrastructure applications.

• Contains 14 case studies of CHP operating through grid outages.

• Policies promoting CHP in critical infrastructure.

• Recommendations on how to design CHP for reliability

http://www.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf

Critical Infrastructure Texas CHP Legislation

• Critical Infrastructure Legislation: TX HB 1831 and HB 4409 – passed in 2009

TX HB 1864 passed in 2013 – requires SECO to develop guidelines

• Requires all critical governmental facilities to formally consider the feasibility of implementing Combined Heat and Power (CHP) technology prior to: New construction or extensive renovation

Implementation cost is $2 million or more, based on the initial cost estimate. (34 TAC Chapter 19, Subchapter C, Rule 19.33)

Replacing major heating ventilation and air conditioning equipment of critical buildings and facilities

Source: http://www.seco.cpa.state.tx.us/chp/HB1864guidelines.pdf

What is a Texas Critical Facility?

• A critical facility :

Is owned by the state or a political subdivision of the state;

Serves a critical public health or safety function throughout a natural disaster or other emergency situation, even when a widespread power outage may exist for days or weeks;

Is continuously occupied and maintains operations for at least 6,000 hours each year; and Has a peak electricity demand exceeding 500 kilowatts.

Source: http://www.seco.cpa.state.tx.us/chp/HB1864guidelines.pdf

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 Technical Assistance

Screening and Preliminary

AnalysisFeasibility Analysis

Investment Grade Analysis

Procurement, Operations,

Maintenance, Commissioning

Uses available site information.Estimates savings,Installation costs, simple paybacks, equipment sizing and type.

Quick screening questions with spreadsheet payback calculator.

3rd Party review of engineering analysis. Review equipment sizing and choices.

Review specifications and bids, limited operational analysis.

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Summary

• CHP is a proven technology for critical infrastructure

• CHP provides a variety of benefits compared to traditional grid electricity and onsite thermal equipment

Increased reliability, high efficiency, energy and emissions savings, reduces grid congestion

• The potential for additional CHP development is high and is being driven by a variety of factors

National, state and local level policy support, low and stable natural gas prices, environmental regulations, and need for reliability

• Southwest CHP TAP can assist in determining if CHP may be right for your facility

• Learn more about Texas Critical Infrastructure Requirements at: http://www.seco.cpa.state.tx.us/chp/

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