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Combined Heat and Power Market and Trends in the Southcentral
Region AEE Lone Star Chapter| February 15, 2019
Speakers
▪ Gavin Dillingham, PhDDirector of Southcentral and Upper West CHP [email protected]
▪ Carlos Gamarra, P.E., CEMAssistant Director of Southcentral CHP [email protected]
DOE CHP Technical Assistance Partnerships (CHP TAPs)
• End User EngagementPartner with strategic End Users to advance technical solutions using CHP as a cost effective and resilient way to ensure American competitiveness, utilize local fuels and enhance energy security. CHP TAPs offer fact-based, non-biased engineering support to manufacturing, commercial, institutional and federal facilities and campuses.
• Stakeholder EngagementEngage with strategic Stakeholders, including regulators, utilities, and policy makers, to identify and reduce the barriers to using CHP to advance regional efficiency, promote energy independence and enhance the nation’s resilient grid. CHP TAPs provide fact-based, non-biased education to advance sound CHP programs and policies.
• Technical ServicesAs leading experts in CHP (as well as microgrids, heat to power, and district energy) the CHP TAPs work with sites to screen for CHP opportunities as well as provide advanced services to maximize the economic impact and reduce the risk of CHP from initial CHP screening to installation.
www.energy.gov/chp
DOE CHP Deployment
Program Contactswww.energy.gov/CHPTAP
Tarla T. Toomer, Ph.D.CHP Deployment ManagerOffice of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]
Patti GarlandDOE CHP TAP Coordinator [contractor]Office of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]
Ted BronsonDOE CHP TAP Coordinator [contractor]Office of Energy Efficiency and Renewable EnergyU.S. Department of [email protected]
DOE CHP Technical Assistance Partnerships (CHP TAPs)
Agenda CHP and CHP TAPs Overview The State of CHP CHP Market and Technology Trends◦ CHP Activity in the Southcentral Region◦ CHP for Critical Infrastructure◦ Packaged CHP Systems◦ CHP and Microgrids
CHP Projects Snapshots Working with the CHP TAP
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
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 Recovery
ThermalSteam
Hot WaterSpace Heating
Process HeatingSpace Cooling
Process CoolingRefrigeration
Dehumidification
CHP Technologies
15 kW 100 kW 1 MW 10 MW 20 MW
Fuel Cells
Gas TurbinesMicroturbines
Reciprocating Engines
Steam Turbines
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
On-site electric generation can reduce grid congestion and avoid distribution costs.
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
The State of CHP
CHP Today in the United States
• 81.3 GW of installed CHP at more than 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 CO2compared to separate production
Slide prepared on 7-3-18
Existing CHP Capacity
CHP Additions by Application (2013-2017)
Slide prepared on 7-3-18
By Capacity – 3.6 MWBy Installations – 851 Installs
CHP Additions by State/Territory (2013-2017)
Slide prepared on 7-3-18
By Capacity – 3.6 MWBy Installations – 851 Installs
CHP Market and Technology Trends
CHP Cumulative Capacityper Year
Total CHP Installations per Year
Average Size of CHP Installations per Year
CHP Activity in the Southcentral Region
CHP by Prime Mover - Southcentral
Source: DOE CHP Installation Database (U.S. installations as of Dec. 31, 2016)
Prime Mover Type # of CHP Systems Capacity (MW)
Boiler/Steam Turbine 73 4,225
Combined Cycle 46 18,417
Combustion Turbine 59 3,065
Fuel Cell 1 0.3
Microturbine 4 4
Reciprocating Engine 39 106
Waste Heat to Power 8 69
Other 1 6
Total 231 25,892
Top Applications Number of Systems - Southcentral
Where are the Southcentral Opportunities for Industrial CHP?
(13,222 MW of CHP potential at 5,669 sites)
Where are the Southcentral Opportunities for Commercial CHP?
(10,637 MW of CHP Potential at 27,426 sites)
Where are the CHP Opportunities in Texas?
(14,062 MW of CHP Potential at 20,855 sites)
CHP for Critical Infrastructure
Power Outages are Costly
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How Does CHP Increase Resilience?
For end users:◦ Provides continuous supply of electricity and thermal energy for
critical loads◦ Can be configured to automatically switch to “island mode” during a
utility outage, and to “black start” without grid power◦ Ability to withstand long, multiday outages
For utilities:◦ Enhances grid stability and relieves grid congestion ◦ Enables microgrid deployment for balancing renewable power and
providing a diverse generation mix
For communities:◦ Keeps critical facilities like hospitals and emergency services
operating and responsive to community needs
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Critical Infrastructure Resilience with CHP
Critical infrastructure refers to assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, economic security, or public health and safety
Many critical infrastructure facilities have consistent electric and thermal loads that can support CHP
CHP offers many benefits to critical infrastructure:◦ Improve power quality, reliability, and resiliency◦ 24/7 power and heat with continuous benefits and cost savings◦ Can continue to operate during utility outages, providing
uninterrupted electricity and heating/cooling to host facility
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CHP Meets Critical Infrastructure Power Reliability Requirements
Requirements for Critical Infrastructure Power Reliability
Black-start capability The CHP system must have an electrical signal from a battery system or onsite backup generator to provide “black-start” capability when there is a grid outage.
Generator capable of operating independently of the grid
The CHP electric generator must be able to continue or maintain operation without a grid power signal. High frequency generators (microturbines) or DC generators (fuel cells) need to have inverter technology that can operate independently from the grid.
Ample carrying capacity The facility must match the size of the critical loads to the CHP generator.
Parallel utility interconnection and switchgear controls
The CHP system must be able to properly disconnect itself from the utility grid and switch over to providing electricity to critical facility loads.
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Source: Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings, U.S. DOE. 2013.
If the CHP system is connected to the grid, it should:◦ Be designed to disconnect and keep operating following a power
disturbance, and◦ Should cover the critical loads of the facility.
Design is Critical for Resilient CHP Systems
Design criteria can significantly impact the resilience of CHP systems during severe weather events
Key design considerations include:◦ Elevation of equipment above flood and storm surge levels◦ Utilize containerized or indoor systems to protect from high winds and debris◦ Utilize shock-mount systems enclosures in earthquake-prone areas◦ Equip with fire protection systems for above-ground gas delivery systems
The Texas Medical CHP system remained operational throughout Hurricane Harvey despite significant flooding in the Brays Bayou area (https://www.energy.gov/eere/amo/articles/chp-installation-keeps-hospital-running-during-hurricane-Harvey)
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CHP vs. Status QuoCHP vs. Backup Generation
Metric CHP Backup Generation
System Performance
• Designed and maintained to run continuously
• Improved performance and reliability
• Only used during emergencies
Fuel Supply• Natural gas infrastructure typically
not impacted by severe weather• Limited by on-site storage – finite
fuel supply
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
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Source: DER Disaster Matrix, Issue Brief, U.S. DOE CHP for Resiliency Accelerator. 2018; Natural Gas Systems: Reliable & Resilient, The Natural Gas Council. 2017; Case Studies of Natural Gas Sector Resilience Following Four Climate-Related Disasters in 2017, ICF Prepared for SoCalGas. 2018.
CHP: Proven to be Resilient
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Hurricane Harvey• University of Texas Medical Branch
(UTMB)• Texas Medical Center (TMC)• Southwest Energy Data Center• Lake Charles Manuf. Complex• DeBakeyVA Medical Center
Hurricane Irma & Maria• Hospital De La Concepcion PR• Wyndham Hotel St. Thomas • Univ. of Florida Shands Medical Center• Matosantos Commercial Corp• Captain Morgan Diageo Rum Distillery• Plaza Extra East Supermarket St. Croix
Superstorm Sandy• South Oaks Hospital• Princeton University• Salem Community College• Public Interest Data Center• Bergen Counties WWTP• Sikorsky Aircraft Corp.
Hurricane Ike & Katrina• Mississippi Baptist Medical Center• Louisiana State University• University of Texas Medical Branch
(UTMB)
CHP Systems Kept Facilities Operational Through Hurricanes
DOE for Resilience Screening Toolhttps://betterbuildingssolutioncenter.energy.gov/accelerators/
combined-heat-and-power-resiliency
Packaged CHP Systems
CHP Packaged Systems
Ranges from 5 to 2,500 kWe Self contained units
◦ Prime Mover
◦ Heat Recovery
◦ Controls
◦ Ancillary Equipment
Standardized yet customizable Factory assembled Moveable
ADVANTAGES
Reduced capital costs associated with engineering & construction
Quality control / Standardized Replicable Factory Testing Minimize finger-pointing Performance Guarantees
CHP Packaged Systems
CHP Packaged SystemsDOE CHP Packages e-Catalog
https://pilot.ecatalog.industrialenergytools.com/
Microgrids
District Energy & Microgrids: Combined Benefits with CHP
CHP technologies provide competitive advantages to microgrids
CHP provides reliable dispatchable power
CHP provides thermal energy during grid outages, and can be applied to district energy systems
CHP results in daily operating cost savings that can significantly help offset costs of resilient microgrids
CHP can offset some capital costs associated with investments in traditional backup power
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SOURCE: www.districtenergy.org
Current Microgrid Market As of October 2018, 331 total microgrid projects in U.S.
◦ 211 operational microgrids identified, with 3.85 GW of total capacity
◦ 104 planned microgrid projects with 1.55 GW of expected capacity
◦ 16 microgrids that have been stalled, or whose status is unknown
CHP serves as resilient baseload anchor for many microgrids – most operational capacity by technology
Microgrid market is growing fast, with solar PV increasing compared to current operational capacity
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Source: ICF Microgrid Database – microgrids used for more than emergency/standby backup power
CHP Microgrids: Status and Benefits For planned and operational microgrids, only 75
out of 314 microgrids use CHP◦ Twice as many microgrids (150) use solar PV◦ CHP may not be applicable for every microgrid, but more
microgrids could be incorporating CHP
Microgrids with CHP can produce baseload power 24/7 and continue critical operations indefinitely during extended utility outages◦ Efficient operation, emission reductions, reliable fuel supply◦ Improved power quality, increased resilience, and potential for
ancillary services
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U.S. Microgrid Capacity by Technology
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0
100
200
300
400
500
600
700
800
900
1,000
CHP Solar Wind Hydro Fuel Cell Diesel Non-CHPNG
Non-CHPBiogas
Unknown Storage
Cap
acity
(MW
)
Operational Capacity Planned Capacity
Source: ICF Microgrid Database
CHP Microgrids with Solar PV and Energy Storage
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0
5
10
15
20
25
30
35
CHP Only CHP+Solar CHP+Storage CHP+Solar+Storage CHP+Other
Num
ber o
f Mic
rogr
ids
Operational Planned (No Solar or Storage)
Source: ICF Microgrid Database
CHP Project Snapshots
Project Snapshot:LEED Platinum
Dell Children’s Medical Center of Central TexasAustin, TX
Capacity: 4.6 MW Fuel: Natural gasPrime Mover: Combustion turbineInstalled: 2009
Highlights: First healthcare facility in the world to achieve a LEED Platinum certification by the U.S. Green Building Council (USGBC)
Slide prepared 6/2017
Project Snapshot:Environmental BenefitsPort Arthur Steam Energy/Oxbow Port Arthur, TX
Application/Industry: Petroleum Coke, Crude Oil ProcessingCapacity: 5 MWEquipment: Waste heat recovery boilers; back pressure steam turbineFuel Type: Waste heatThermal Use: Steam and electricity generationInstallation Year: 2005Environmental Benefits: CO2 emissions reduced by 159,000 tons/year
Testimonial: “Through the recovery of otherwise-wasted heat to produce high pressure steam for crude oil processing, Port Arthur Steam Energy LLP has demonstrated exceptional leadership in energy use and management.” - U.S. Environmental Protection Agency, in giving the 2010 Energy Star Award
Slide prepared 6/2017
Project Snapshot: University of Texas Medical Branch at Galveston Location: Galveston, TX Application/Industry: Hospital Capacity: 11.9 MW Prime Mover: Combustion turbine Fuel Type: Natural gas Thermal Use: Steam for steam, DHW Installation Year: 2016 Resilience Benefits
◦ Hurricane Ike severely damaged UTMB campus and energy/steam infrastructure
– Hospital unable to operate for 90 days, $2 million loss of business revenue/day, lost research materials, etc.
◦ Converted buildings to DHW, distributed steam overhead to buildings, elevated boilers and chillers, and built flood wall around CHP system
◦ During Harvey, CHP system operated throughout in island mode, and all infrastructure was well protected
The UTMB CHP systems protected by a flood wall, photos courtesy of Affiliated Engineers
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How to Implement a CHP Project with the
Help of CHP TAP
CHP TAP Role: 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
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
energy.gov/chp-projects
EPA dCHPP (CHP Policies and Incentives Database
https://www.epa.gov/chp/dchpp-chp-policies-and-incentives-database
CHP Project Resources
DOE CHP Installation Database(List of all known
CHP systems in U.S.)
Low-Cost CHP Screening and Other Technical Assistance from
the CHP TAP
energy.gov/chp-installsenergy.gov/CHPTAP
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Next StepsResources are available to assist in developing CHP Projects.
Contact the Southcentral CHP TAP to:
Perform CHP Qualification Screening for a particular facility
Identify existing CHP sites for Project Profiles
Advanced Technical Assistance
Summary CHP gets the most out of a fuel source, enabling
◦ High overall utilization efficiencies
◦ Reduced environmental footprint
◦ Reduced operating costs
CHP can be used in different strategies, including critical infrastructure resiliency and emergency planning
Proven technologies are commercially available and cover a full range of sizes and applications
Gavin Dillingham, PhD.Director of Southcentral and Upper West CHP [email protected]
Carlos Gamarra, P.E., CEMAssistant Director of Southcentral CHP [email protected]
Thank You!