Benefits of CHP/District Energy for Communities. Jordan Gerow Securing Economic, Resiliency, and Environmental Benefits

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1 Benefits of CHP/District Energy for Communities Jordan Gerow Securing Economic, Resiliency, and Environmental Benefits 1

2 Community Concerns Improving public health/safety during power outage Ensuring critical services during extended outages Creating oasis for emergency needs: food, shelter, transportation, and medical/pharmaceutical Reducing total heat and power costs for buildings Achieving sustainability goals with hybrid systems 2

3 CHP, District Energy & Microgrids: Combined Benefits Energy Assurance: The need for stable and sustainable energy supply at sites Reliability: The need for greater resilience and reliability, risks, and financial costs Clean Energy Development: reducing greenhouse gas (GHG) and other emissions Economic Development: Imperatives for encouraging and facilitating economic development Disruptive Technologies and Forces: Transformative industry trends that make distributed generation (DG), energy storage, and energy management technologies more useful and cost-effective for a wider range of applications Local Self-Reliance: Energy end-users interest in alternative service models, especially those that enhance local self-reliance, environmental quality, and economic health. 3

4 Definitions Microgrid Source: US DOE, OE 4 4

5 Microgrid Example Source: Siemens 5

6 District Energy Systems are Ideal Applications for CHP and Microgrids District energy systems produce steam, hot water or chilled water at a central plant that is then piped underground to individual buildings for space heating, domestic hot water heating and air conditioning. Benefits: Improved energy efficiency Ease of operation and maintenance Reliability Enhanced environmental protection Fuel flexibility Decreased building capital costs Comfort and convenience for customers *According to the International District Energy Association, 6

7 Post Sandy Manhattan ConEd HQ 7

8 Impact of Hurricane Sandy Moody s Analytics est. nearly $20 billion in losses occurred due to suspended business activities after Hurricane Sandy. PlaNYC Resiliency report cites $19 billion in total losses from Sandy for NYC alone. Accelerated pace of DG/Microgrids deployment for resiliency planning called for by NY 2100 Commission Report January 2013 NY Prize program includes 83 microgrid feasibility studies ongoing On-site generation serves community needs when main grid is down 8

9 Resilient University Microgrids in Superstorm Sandy The College of New Jersey (NJ) 5.2 MW CHP Combined heat and power allowed our central plant to operate in island mode without compromising our power supply. - Lori Winyard, Director, Energy and Central Facilities at TCNJ Fairfield, University (CT) 4.6 MW CHP 98% of the Town of Fairfield lost power, university only lost power for a brief period at the storm s peak University buildings served as area of refuge for off-campus students Stony Brook University (LI, NY) 45 MW CHP < 1 hour power interruption to campus of 24,000 students (7,000 residents) NYU Washington Square Campus (NY, NY) 13.4 MW CHP Princeton University (NJ) 15 MW CHP CHP/district energy plant supplies all heat and hot water and half of the electricity to campus of 12,000 students/faculty "We designed it so the electrical system for the campus could become its own island in an emergency. It cost more to do that. But I'm sure glad we did. Ted Borer, Energy Manager at Princeton University [see Wednesday am Ted Talk] 9 9

10 Super Storm Sandy CHP Princeton University, NJ Stony Brook Univ, N Fairfield, CT 10 Ewing, NJ 10

11 Resilient Critical Infrastructure in Superstorm Sandy Danbury Hospital (Danbury, CT) 4.5 MW CHP supplies 371 bed hospital with power and steam to heat buildings, sterilize hospital instruments & produce chilled water for AC $17.5 million investment, 3-4 year payback, cut AC costs 30% Nassau Energy Corp. (Long Island, NY) 57 MW CHP Supplies thermal energy to 530 bed Nassau University Medical Center, Nassau Community College, evacuation center for County No services lost to any major customers during Sandy The Long Island Home (Long Island, NY) 1.3 MW CHP Serves 197 bed South Oaks Hospital and 320 resident Broadlawn Manor Stayed operational and isolated from LIPA grid for 15 days Hartford Hospital/Hartford Steam (CT) 14.9 MW CHP Bergen County Utilities Wastewater (Little Ferry, NJ) MW CHP Process sewage for 47 communities) 11 11

12 o Resilient Infrastructure: South Oaks Hospital Hospital & Nursing Home campus with natural gas-powered CHP system o System consists of five 250 kw IntelliGen engines o o o When the main grid went down during Sandy, South Oaks transitioned to island mode with no interruption of power. The CHP System provided 100% of the facility s electricity, thermal and hot water demands for 15 days. In addition to meeting the hospital s needs, South Oaks admitted evacuated patients from nearby healthcare facilities, refrigerated medications, and housed hospital staff who had lost power. 12

13 Microgrids: Reduced Emissions and CO 2 Cornell microgrid estimates 50,0000 tons per year CO 2 reductions (40%) Burrstone microgrid estimate 4,000 tons per year CO 2 reduction NYU microgrid estimates 44,000 tons per year CO 2 reduction 13

14 Microgrids: Lower Energy Costs Burrstone microgrid s users (college, nursing home and hospital) each report savings between $300,000 and $500,000 annually, or 15-20%. South Oaks Hospital CHP system saves nearly $540,000 on $1.467M energy bill. NY Presbyterian reports that by purchasing 10% more fuel (natural gas) they avoid purchasing 80% of their electricity requirements. 14

15 Microgrids: On-Site Renewables Role for local generation of renewable energy Decreasing storage costs will boost this role On site renewable/intermittent generation is best matched with CHP to meet electric and thermal load around the clock. 15

16 Checklist for Identifying High Value Sites Concurrent electric and thermal loads for a large proportion of the hours of the year Existing central heating and cooling distribution system Complementary electric and/or thermal demand at sites within close proximity, enabling a cost-effective integration of building loads. Capital equipment at or near end of useful life, warranting replacement in near term Expansion plans requiring upgrade to building energy demand Located in an area requiring electric utility distribution capital expenditure to meet local reliability needs 16

17 Factors for Successful Development of Community-Scale Projects 1. Project champion 2. Support from the top decision maker(s) 3. Project aligned with broader municipal goals 4. Long term power and heating contractual relationship with energy end-users 5. Good financing terms 6. Operation and Maintenance procedures and protocols 17

18 Next Steps Resources are available to assist in developing CHP and Microgrid Projects. Contact the Northeast CHP TAP to: Perform an initial qualification screening to evaluate if CHP is a fit for a particular facility Perform an preliminary study to see if CHP with District Energy is a fit for a portion of your City. Additional Technical Assistance 18

19 Thank You Jordan Gerow (914) Dan Leonhardt (914)