Integrated Energy Combined Heat & Power (Making a Comeback)

Combined Heat & Power – The Basics

Bob Albertini Pepco Energy Services August 11, 2015

Phoenix Convention Center • Phoenix, Arizona

Combined Heat & Power Overview

• • • • •

Overview

– Basic concept – Typical configuration & components

Benefits Characteristics of a good opportunity Market drivers Case studies

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CHP Overview – Distributed Generation

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Distributed Generation:

– An electric generator; – Located at-or-near the end user; – Generates at least a portion of the electric load

Typical DG Technologies:

– Engine Generators – Turbine Generators – Solar Photovoltaic – Wind Turbine – Fuel Cells

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CHP – Basic Concept

• CHP is: – A specific type of Distributed Generation – – The simultaneous production of electricity and heat from a single fuel source An integrated energy system (not a single technology) that can be modified – depending upon the needs of the energy end user • • Highly efficient CHP: – 70% to 80% Separate Elec. & Thermal – 40% - 50% ‒ Can use various • • • Fuels: Natural Gas Landfill/Biogas Biomass

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CHP – Typical Configuration

• • Use fuel to first Generate Power, then Capture resulting heat for use as: – Heating – – Cooling Both Thermally Activated Machine

“Prime Mover”

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CHP – Typical Components

• • • • Prime Movers

(Converts fuel input to mechanical shaft power)

– Reciprocating Internal Combustion (IC) Engine – – – Combustion Turbine Steam Turbine Microturbine Electrical Equipment – Generator

(Converts mechanical shaft power to electrical energy)

– Step-up transformer & grid interconnection gear Heat Recovery Equipment – Heat recovery steam generator (HRSG) Thermally Activated Machine/Thermal Load – Energy transfer stations/air handling units – Process Heat – Economizer – Absorption or steam driven chillers

HRSG IC Engine Microturbine Combustion Turbine Transformer Absorption Chiller

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CHP – Typical Components – Prime Movers

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Advantages Disadvantages Typical Sizes Installed Costs $/kW O&M Costs ¢ /kWh Availability Part Load

Reciprocating IC Engine Gen.

• Fast Start up • Hi part load efficiency • Island mode capable • Operates on low pressure gas • High maintenance costs • Low temperature thermal output • Higher emissions • Needs cooling < 5MW 1,500 – 2,900 0.9 - 2.5

92% – 97% OK

Combustion Turbine

• High Reliability • Low Emissions • High-grade Heat • No cooling required • Requires gas compression • Poor efficiency at low loads • Output varies w/ ambient temp 500kW – 300MW 1,200 – 3,300 0.9 - 1.3

90% – 98% Fair - Poor

Steam Turbine MicroTurbine

• High overall efficiency • Any fuel type • Long working life • High reliability • Slow start up • Low power to heat ratio • Small # of moving parts • Compact size & wt.

• Low emissions • No cooling required • High costs • Low temp. thermal output • Lower mech. Efficiency 500kW – 300MW+ 670 – 1,100 0.6 – 1.0

Near 100% OK 30kW – 1MW 2,500 – 4,300 0.9 – 1.3

90% – 98% OK

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CHP – Typical Components – Electrical Equipment

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• • Electrical Generator ‒ Converts mechanical shaft power to electricity ‒ Typical output voltage • IC Engine: 480V – 4,160V • Gas/Steam Turbines: 4,160V – 13,800V • Microturbines: 480V ‒ Typically synchronous • Can produce power during grid blackouts

Generator on IC Engine

Grid interconnection ‒ Several Grid Interconnection Standards • IEEE 1547; FERC Order 2006; State-specific standards ‒ Required for safety, grid integrity, equipment protection ‒ Parallel Operation is typical/preferred • Export mode  Flexible CHP system sizing • Non-export mode  Load following

Switchgear

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CHP – Typical Components – Heat Recovery

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• • Heat is recovered from: ‒ Hot water ‒ Hot exhaust gas ‒ Steam

HRSG

Typical uses: ‒ Jacket water  heating Boiler economizer, space/process ‒ Exhaust gas  • Steam  • • Heat recovery steam generator (HRSG) Energy transfer stations Air handling units • • Absorption/steam chillers Industrial processes

Economizer Absorption Chiller Air Handling Units

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Why Pursue a CHP Project?

• • • • Reduced Energy Costs – Efficient Fuel Utilization – Waste Heat captured for useful work – No transmission and distribution losses Improved Electric Reliability – Reduced susceptibility to grid failures Improved Energy Security – Generation is “on-site” – Particularly applicable to Military Bases Improved Power Quality – Reduced line losses/steady voltage Radiation (5%) Exhaust Not Recovered (15%) Exhaust (20%) 850 o F Jacket Coolant (30%) 150 o F – 250 o F Shaft Power to Drive Load (30%)

Energy Distributions for a Typical Reciprocating Engine

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What Makes a Good CHP Opportunity?

• • • Combination of Technical, Financial, Regulatory Factors Technical – – – – Long operating hours (>5000 hrs/yr) High, coincident, electrical & thermal loads (>4000 hrs/yr) Existing and aging central plant Power quality/reliability issues Economic/Financial – Wide spark spread – Low or no standby charges/penalties – Access to Funding/Financing • ESPC’s/UESC’s • Utility Rebates and Incentives Economic/ Financial Regulatory/Utility – Favorable permitting environment – Simple, clear, fair interconnection requirements Technical Regulatory/ Utility

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CHP Market Driver – Stable, Low Gas Prices

Henry Hub Gas Prices expected to Remain between $3.00 and $6.00 thru 2030

ICForecast: Natural Gas – Strategic Forecast, Q3 (July) 2015 Base Case

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Spark Spread Improving for CHP

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Avg. Commercial Natural Gas Price 14.00

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Avg. Commercial Retail Electricity Price Historical Forecast Spark Spread Forecast

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14 CHP Case Study – National Institutes of Health (NIH)

• • • • • • • • • • • UESC Financed Project PES designed, permitted and built SGT-600 23MW combustion turbine – Inlet air cooling – 1200 HP gas compressor Dual fuel capability 100,000 lbs/hour steam unfired 180,000 lbs/hour steam fired Interfaces to existing systems Interconnect with PEPCO/PJM 15 year O & M contract Provision for Temporary boilers 2011 CHP Energy Star Award

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15 CHP Case Study – PES Owned Midtown Thermal Plant

• • • • • • • Solar Taurus 60 5.7MW Combustion Turbine – Dual fuel Capability – Inlet air cooling Turbine heat recovery provides base load steam demands – 27,000 lbs/hour steam unfired – 65,000 Lbs/hour steam fired 350 HP gas compressor Power export – Interconnect ACE/ PJM PES designed, permitted, built Reduces overall site emissions 2015 CHP Energy Star Award

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16 CHP Case Study – DC Water

• • • • 15 MW Combined Heat and Power (CHP) facility – Three 4.6 MW Solar Mercury 50 low-nitrogen oxide gas turbines – Digester gas cleaning and compression – Heat recovery steam generators, duct burners – Backup boiler Uses biogas from DC Water’s water treatment process to produce steam and electricity – Steam returned and used in DC Water’s treatment process Contract value – Construction: $82 million – O&M: $90 million Schedule – Contract signed February 2012 – – Construction begins Summer 2012 Construction completion August 2015 • 15-year O&M Phase begins

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17 Questions & Contact Information

Bob Albertini Pepco Energy Services [email protected]

708-710-5645

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