Borough of South River, New Jersey Alternative Energy & Conservation Committee

Transcription

1 Borough of South River, New Jersey Alternative Energy & Conservation Committee Municipal, Commercial & Residential Energy Initiative Executive Summary August 24, 2009

2 Alternative Energy & Conservation Committee Members William England, Chairman Joe Hranowski, Vice Chairman Gordon Anthony, Secretary James Maiello Marilyn Meloni Ken Semanovitch William Synek Jim Hutchison, Borough Council Representative

3 Purpose Investigate, evaluate and recommend energy production solutions to the Borough Council for municipal, commercial and residential use. Investigate, evaluate and recommend energy conservation solutions that will reduce energy usage for municipal, commercial and residential users. Presentation to follow in December.

4 South River Borough s Energy Production Environment South River, has its own electric utility that controls the electric distribution system within the Borough. South River is one of nine municipalities (Public Power Association of New Jersey, PPANJ) in New Jersey that control their electric distribution system. South River must purchase, on the open electric marketplace with the other members of the PPANJ, the electricity it needs to run the town. Marketplace purchases are expensive and costs are unpredictable because of price fluctuations at the time of contract renewals.

5 Given: South River Borough s Energy Production Environment The increasing demand for electrical power in NJ and the lack of new NJ generation capacity in many years. The availability of a market for energy production (both in town and through the Public Power Assoc. of NJ). The potential revenue to the Borough from producing power for the electric grid. South River has a strong economic incentive to explore the generation of our own electric power.

6 South River s Energy Production Options Coal Coal Gasification Natural Gas Nuclear Bio-fuels Tidal Geothermal Solar Wind Micro-turbines

7 NJ Power Generation Cost Assumptions (2008 dollars) (Source: NJ Energy Master Plan 2008) Overnight Installed Cost ($/kw) Variable Operation & Maintenance Cost ($/MWh) Fixed Operation & Maintenance Cost ($/kw-yr) Heat Rate (MMBt u/kwh) Capacity Factors Min Max Min Max Min Max - Min Conventional Coal Gasified Coal -Integrated Gas Combined Cycle (IGCC) $2,300 $2,800 $3.50 $5.50 $24.00 $ ,000 $3,000 $4,500 $6.50 $7.50 $35.00 $ ,350 Determined by model Determined by model Advanced Combined Cycle (Gas & Steam) $900 $1,050 $2.00 $3.00 $6.50 $ ,875 Gas Turbine $600 $800 $3.50 $6.00 $6.50 $ ,750 Nuclear $4,500 $7,000 $0.65 $1.50 $80.00 $ ,400 Determined by model Determined by model Determined by model Combined Heat & Power (CHP) (3-25 MW)** w/out Chillers $1,000 $1,500 $4.00 $6.50 $30.00 $ ,000 80%

8 NJ Power Generation Cost Assumptions (2008 dollars) (Source: NJ Energy Master Plan 2008) Overnight Installed Cost ($/kw) Variable Operation & Maintenance Cost ($/MWh) Fixed Operation & Maintenance Cost ($/kw-yr) Heat Rate (MMBt u/kwh) Capacity Factors Min Max Min Max Min Max - Min Combined Heat & Power (CHP) (3-25 MW)** w/ Chillers $2,000 $2,000 $4.00 $6.50 $30.00 $ ,000 80% Wind On-shore $2,000 $2,500 $1.00 $2.00 $30.00 $45.00 n/a 32% Wind Off-shore $3,100 $4,100 $1.00 $2.00 $50.00 $ n/a 34% Biomass $2,500 $3,500 $2.00 $4.00 $50.00 $ ,250 85% Solar $5,000 $8,000 $0.00 $1.00 $11.00 $12.00 n/a 13.5%

9 Natural Gas Power

10 Natural Gas Power Natural gas is North America s cleanest and one of the most plentiful carbon-based fuels. Major gas line runs through our public works site on Ivan Way and location on South River identified as ideal for power plant operation by a major utility. One of two best sites identified in New Jersey. Significant revenue potential through the sale of electricity into the grid. Membership in the Public Power Association of New Jersey provides market for energy generation and potential borrowing capacity to fund construction. Efficient heat and power or heat and steam designs increase efficiency and cost effectiveness of natural gas power plants.

11 Micro-Nuclear Power

12 Micro-Nuclear Power New self-contained and completely self-regulating nuclear technology Cylindrical enclosure 1.5 m in diameter (about the size of a residential hot.( tub Concrete containment shell designed to be buried underground.( years and dug up for shipment back to factory for refueling (every 5-10 No maintenance within the containment shell necessary by end-user. Capable of supplying South River s 24 megawatts of power capacity. Estimated Cost $25-$30 million. Manufacturer: Hyperion Power Generation [ Reactor licensing initiated with US Nuclear Regulatory Commission. First installation planned for 2013 in Europe.

13 Renewable Bio-Fuels Anaerobic Digestion

14 Renewable Bio-Fuels Anaerobic Digestion Foods, grasses, organic waste and food oils are sent through an Anaerobic Digester are separated and create renewable Methane Gas that is burned to create electricity or sold as a fuel. South River produced 7,438 tons of garbage waste in 2008 costing So. River $419,078 in landfill tipping fees (30%-40% is organic waste). Residents would have to separate food and organic waste for either a separate pick-up or garbage trucks would have to be refitted to separate food and organic waste from other waste. Small 5,000 ton plant can process waste from a 15,000-20,000 person community. South River has the space for a 2.1 acre plant that could run a 5,000 ton Borough-only project. Significant state grants available for bio-fuel electricity generating plants.

15 Renewable Bio-Fuels Bio-diesel The Bio-diesel process uses waste vegetable oils, plant oils and animal fats to create a clean burning alternative fuel that can be blended with petroleum diesel. Blends can be used in most diesel engines with little or no modification. Can also be used as a home heating oil additive. Clean renewable fuel that produces less greenhouse gases than diesel only fuel and emits a more pleasant french-fry smell. More biodegradable than petro-diesel. Difficult to make and must mix with dangerous, highly caustic materials processed and stored. May not perform as well In cold weather. More expensive but rebate program available to towns to offset higher cost.

16 Tidal Power

17 Still experimental (Verdant Power in NYC), 30 turbines will electrify 1,000 homes. Tidal Power Using the currents of rivers and tides, underwater turbines (similar to underwater windmills) generate renewable and reliable clean energy that can flow directly into the power grid. South River meets the depth and current requirements for tidal power (35 feet deep and a current of at least 2 meters per second). Pivot-based assembly allows the tidal turbines to achieve 80-90% capacity, approximately, double those of wind and solar systems. Tidal power has lower upfront capital costs. Few moving parts decrease operation and maintenance costs. Navigation aids are needed and area is boomed off to recreational activities; studies still underway regarding effects on marine life.

18 Geothermal Power

19 Geothermal Power Geothermal power uses the constant temperature of the earth through underground or underwater liquid filled coils, the heat transfer property of liquids and a pump to heat and cool buildings. Highly efficient using 40% to 70% less energy than conventional systems. No carbon-based fuels, boilers, furnaces or air conditioners. Maintenance costs less as inside components last 25 years and outside ground loop last 50+ years. No above ground outdoor equipment, also quiet. More expensive to install than traditional systems but state grants and federal tax credits available. Residential payback 5 to 7 years without additional renovations (duct work etc.). Payback 2-4 years for commercial and municipal buildings.

20 Solar Power

21 Solar Power Clean, renewable energy source, converts sunlight to electricity, which can be used or stored in batteries for availability on cloudy days or at night. Common uses include: Solar Hot Water Systems, Solar Electric Photo-Voltaic (PV) Systems, Solar Lighting. Excellent source of electrical power used in conjunction with other conservation technologies, geothermal etc. Solar Panels can be mounted on rooftops, on poles or on the ground. Large surface areas needed to generate sufficient electricity. Large installation investment: Solar hot water system: $2,000-4,000, Solar PV system: $8,000 10,000, for a 1KW system. Low cost to operate and maintain. Federal and State financial incentives for residential, commercial and municipal installations (NJ excludes solar hot water). South River $5,000 access fee discourages use of solar power in borough.

22 Wind Power

23 Wind Power Clean, renewable energy source, converts wind energy into electricity using wind turbines. Concerns: intermittent source of energy that is not always available; good wind sites far from population centers. Wind studies reveal that Central NJ is generally not a good source of wind generation, although individual locations vary. Wind turbine sizes vary. Small systems cost $3,000 to 6,000 for every kilowatt of generating capacity or about $40,000 to power a home. Some environment concerns over the noise from the rotor blades, aesthetic (visual) impacts and affect on birds. So. River has ordinances in place restricting the use of wind turbines. Note: PPANJ members may have capability of producing substantial wind power.

24 Wind New Jersey Wind Map

25 Alternative Energy Micro-Turbine

26 Alternative Energy Micro-Turbine Provides on-site building electrical power for primary or stand-by applications thereby reducing demand on the municipal electric grid. Consists of a turbine engine, solid-state power electronics and fuel system. Can be connected to the grid or a standalone system. Uses most commercial fuels and renewable fuels. Rated power capacities 10 kw to 1MW; Can be connected in parallel to produce small or large amounts of power. Exhaust heat can be used for water heating, space heating, or absorption chillers which create cold for air conditioning. High power density; High efficiency; Low emissions Currently available with a substantial track record of installations.

27 Energy Production Solutions General Concerns: Any major energy production option will face NIMBY concerns from residents. Significant regulatory approval needed for all major production solutions. Cost of constructing a major power plant may exceed the borrowing capacity of the Borough and the Public Power Assoc. of NJ. Borough may be forced to work with a commercial partner to access capital and operational expertise. Public Works department would have to be relocated in order to construct a major power plant. Many of the reviewed technologies while promising are still experimental in nature.

28 Energy Production Solutions Recommendations to the Council: Explore constructing with PPANJ members a natural gas fueled electric power plant on the Ivan Way property. Explore purchasing a small five ton Anaerobic Digester that will use our organic waste to produce electricity. Explore how to significantly reduce or eliminate fees on installation of solar panels on buildings in the town. Evaluate use of solar energy for municipal, school and residential use: lighting projects, hot water systems and solar Electric Photo- Voltaic (PV) systems including utility pole installation. Encourage geothermal heating and cooling for any new or renovation construction of municipal, commercial, school or residential buildings. Explore creating buying cooperatives for geothermal and solar panel installation in resident s homes in South River.

29 Energy Production Solutions Recommendations to the Council: Look to potentially locate small wind power turbines atop taller municipal structures, like water towers or schools while exploring the purchase of wind power through PPANJ. Consider feasibility of adding micro-turbine systems for all new commercial, municipal and school construction. Monitor the developments in tidal and micro-nuclear technology and after implementation in other towns seriously consider these technologies for South River.