Smart Grid Division Distributed Generation in a Smart Grid Ken Geisler Vice President, Strategy NAM Smart Grid Division Infrastructure & Cities Sector Siemens Industry, Inc.
Distributed Generation driving changes in grid design From centralized, unidirectional grid to distributed energy and bidirectional energy balancing Hydrogen Storage Diesel Generator Biogas CHP Private Solar Offshore Wind Parks Small Industrial Gas Turbine Pumped Storage Power Plant Storage Solutions Storage Solutions Electrical Vehicles Smart Street Lighting Large Scale PV Plant Unidirectional Power Flow Bidirectional Power Flow Page 2
Solutions Challenges Current challenges provide significant opportunity Renewable and distributed generation Limited generation and grid capacity Aging and/or weak infrastructure Cost and emissions of energy supply Revenue losses, e.g. non-technical losses Balancing generation & demand, new business models Load management & peak avoidance Reliability through automatic outage pre-vention & restoration Efficient generation, transmission, distri-bution & consumption Full transparency on distribution level / aut. loss prevention Page 3
Integration of Distributed Generation into Grid Solutions Integrated Distributed Resources Market Systems Interface MMS Grid Modernization Planning and Asset Optimization PAO Informed Consumption Customer Care Management CRMS Energy Balancing & Demand Response DERM/DRM Control Center EMS/DMS/OMS Consumer Information Management MDMS/AMI Industrial Commercial Residential Smart-Substation TM Controller Industrial Commercial Residential Wind Solar Batteries Building, Home, Distributed Energy Management Systems Recloser Switch Capacitor Bank DER Intelligent Field Devices (i.e. Meters) Controllable Equipment Balancing of Resource Capacity for Reliability and Economics Page 4 Grid Reliability and Resilience Bi-Directional Management of Customer Energy Information IC CC
Designing distributed generation solutions for resilience Apply resilience planning as a guiding principle for future infrastructure investments ( Inside-out distributed design) Resilience built on Reliability and Sustainability Develop a strategy for prioritizing necessary upgrades, investing in new generation assets and allowing the electrical delivery grid to fail in predictable layers of demand priority Energy District Structure Resilience Plan Level 1: Critical infrastructure - Resilient Microgrid Level 2: Districts of partial sustainability Level 3:Self-healing zones of reliability Level 4: Utility Service Area Page 5 IC CC
The imminent topic of resilience The number of natural disasters is increasing Page 6 5/20/2013 IC CC
Resilience Revealed by Hurricane Sandy Co-Op City, Bronx, NYC 14,000 apartments 35 high-rise buildings 40MW steam turbine generator, plus CHP Operates on a micro grid Retained power for 60,000 residents Page 7
Distributed Generation Landscape Technology List Average Capacity for Building/ Community Biomass Dairy or Swine Manure Biomass Advanced Digester (Food Industry Biogas Application) Biomass Landfill Gas (LFG) Biomass Waste Water Treatment Plant (WWTP) 550 kw electric Up to 2,000 kw electric 5,000 kw electric (5MW) Geothermal Geothermal Heat Pumps 150 tons cooling Hydropower Hydro In Conduit 1100 kw electric Solar Solar Photovoltaic Residential Fixed Tilt Solar Photovoltaic Commercial Fixed Tilt Solar Photovoltaic Ground Based Tracking Solar Integrated Space and Water Heating Solar Residential Water Heating 5.3 kw electric 138 kw electric 1500 kw electric 4.4 kw thermal 116 therms/year Wind Wind Community Scale 5,000 kw (5MW) Source: KEMA 2009 Cost of Generation Study for the California Energy Commission Page 8 IC CC
What is cogeneration/chp? The most effective and efficient form of power generation. The process where single fuel source, such as natural gas, is used to produce both electrical and thermal energy. Source: http://www.futureworldenergyinc.com/products/cogeneration/ http://energensolutions.com.au/cogeneration/ http://www.uschpa.org/i4a/pages/index.cfm?pageid=1 Page 9
Conventional Central Generation vs. CHP Central The typical U.S. power plant is only about 33% efficient, using three units of fuel to produce one unit of electricity. The rest gets turned into waste energy, mainly heat that's vented into the atmosphere. Most plants can't recycle this heat because they're located remotely, far from consumers, and heat cannot travel far before turning cold. This kind of energy production called "central" generation is the dominant way of making power in the U.S. CHP CHP turns these numbers on their head, providing what the U.S. EPA calls "an efficient, clean, and reliable approach to generating electricity and heat energy from a single fuel source." The key is that cogeneration plants generate energy on site at the facility. That enables these facilities to recycle their waste heat into clean electricity and useful steam, which can be used to warm nearby buildings or to assist various industrial processes Conventional Central Generation average efficiency 30% 67% waste heat Combined Heat and Power (Cogeneration) average efficiency 73% 27% waste heat 100% fuel Power plant 3% Line losses 30% Delivered Electricity 100% fuel CHP plant on-site Heat recovery boiler 40% Thermal Energy 33% Delivered Electricity For every 100 units of fuel, approximately 67 units are released as waste heat. About 3 more units are abandoned through transmission line losses. As a result, only 30 units of power are actually delivered to the customer. Excess heat is recycled at a CHP plant (on-site at manufacturers or other large institutions) through a heat recovery boiler. The process recaptures about half the waste energy as thermal energy. As a result, 73 units of usable energy are available. Source: http://www.recycled-energy.com/main/combined_heat_power.html Page 10
How Does CHP Generation Work? Fossil fuel such as oil, coal or natural gas is burned in a furnace to release heat energy. Heat is used to boil water and make steam. Steam drives the turbine, turbine drives the generator, the generator makes electricity. The exhaust heat is captured in the cogeneration equipment and is used to supply hot water, steam or space heating. Source: http://intelligenpower.com/whatiscogen.htm Page 11
What are the benefits of cogeneration? Energy Savings Uses fuel more efficiently, more watts per dollar Reduces pollution Environmental Offers energy savings ranging between 15 40% when compared against the supply of electricity and heat from conventional power stations Provides lower transmission losses (since it is located in close proximity of campus / building) Lowers emissions to the environment, in particular CO2, the main greenhouse gas by 30 50% Cogen plants are generally built closer to populated areas, which requires them to be held to higher environmental standards Generated power is used by an individual facility Source: December 2004: by Director John Herbert Page 12
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cumulative Capacity Additions (GW) Over 35 GW of New CHP Capacity Has Been Installed Since 1995 Capacity Additions 1995 to Present 100 90 80 70 60 50 40 Source:http://www.cogeneration.org/111011Conf/Presentations/Haefke.pdf Page 13
Price of Electricity is on the Rise, CHP Potential is Climbing Economic factors affecting CHP Economy will improve more demand for electricity Environmental regulations will become more stringent, forcing power plants to invest in pollution reduction technology, passing cost to end consumer. Technology is improving Regulation Carbon Reduction Economic development Government support increasing Low natural gas price with big abundance in the US Electricity rates are increasing Source: http://www.electricchoice.com/electricity-prices-by-state.php Page 14
Application Areas K-12 Light Industrial Higher Ed Hospital Airport Stadium Page 15
Application Areas Multi-family housing Prisons Energy Districts Military Bases Definition: A system for distributing heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating. The heat is often obtained from a cogeneration plant burning fossil fuels but increasingly biomass, although heat-only boiler stations, geothermal heating and central solar heating are also used, as well as nuclear power. Examples of heating / cooling districts: NYC steam system - largest commercial district heating system in the U.S. Denver's district steam system is the oldest continuously operated commercial district heating system in the world. It began service November 5, 1880 Seattle steam company operates a district system in Seattle Page 16
Siemens: Industrial Turbines for all Your Needs Gas Turbines Gas turbines for power generation, combined heat & power and mechanical drives for all industrial applications. Small gas turbines from 5 up to 15 MW Medium gas turbines from 18.5 up to 50 MW Steam Turbines Steam turbines for power generation, combined heat & power and mechanical drives for all industrial applications Various design paradigms including: Pre designed steam turbines up to 10 MW Industrial steam turbines up to 250 MW Page 17
Example Project: CHP Savannah River Site, in Aiken, SC (largest energy efficient project in nation s history) Location Facility Size Installation Costs Annual Energy Savings Aiken, South Carolina More than 300 sq. miles $795 million $34.3 million 1st year Project date May 2009 Dec 2011 Supplier Contract Duration Ameresco 19 years Background: SRS, a nuclear reservation, built during the 1950s to refine nuclear materials for deployment in nuclear weapons, was experiencing challenges maintaining their 1950 s vintage boilers, and at the same time, meeting the requirements of the Clean Air Act and other mandated improvements in energy and increased use of renewable energy. SRS is owned by DOE. Replaced: coal and oil-fired generation by incorporating a biomass-fueled steam cogeneration plant and two smaller biomass-fueled plants Key benefits of project: Annual energy reduction Support of the S. Carolina Biomass Council Goals Decrease of water intake from Savannah River, supporting water conservation efforts in the region Reduced its carbon footprint into the environment. Government s largest biomass fueled cogeneration facility in the country Source: http://www.ameresco.com/sites/default/files/cs_savriver_v5.pdf Page 18 http://www.renewableenergyworld.com/rea/news/article/2012/02/excell ence-in-renewable-energy-awards-winners-project-of-the-year-andreaders-choice?page=5
Example Project: CHP in Chicago Museum of Science & Industry Equipment Cost $1,723,125 Annual Energy Cost Savings Simple Payback Fuel Use Efficiency Approx. $200,000 Est: 8.6 Years System Online February 2003 Supplier 60.5% (38.3% electric; 22.2% thermal) Ballard Engineering Background: The heavily co-funded project included sponsorship by the Museum, the US DOE, the Gas Technology Institute (GTI), and both the City of Chicago, and the State of Illinois. GTI served as the US DOE project manager and Ballard Engineering (Rockford, IL) was selected as the design and installation engineering firm. Outcome: The system is located on the second floor of the museum in a partitioned area adjacent to an existing exhibit space. Plans include incorporating the CHP system as part of an exhibit on distributed generation http://www.midwestcleanenergy.org/profiles/projectprofiles/museumscienceindustry.pdf Page 19
Example Project: CHP at Naval Stations in Great Lakes, IL Location Campus Size Great Lakes, Illinois Installation Costs $34,110,909 1) Annual Savings $3.5 million 1) Began Operation Summer 2005 Supplier 278 buildings 10.9 million SF of occupied space Ameresco Background: Facilities were aging and Energy Policy Act (EPACT) mandated reduction in energy consumption in all federal facilities NSGL was confronted with expanded responsibilities and shrinking budgets Ameresco along with the Naval Facilities Engineering Command, developed a long term plan to upgrade and modernize the NSGL facilities utilizing third party financing. A three-step plan was developed and implemented to repair / refurbish / upgrade buildings, upgrade the distribution systems, and improve the existing central plant with CHP. The major challenges to implementing the plant upgrades via a CHP system included: Upgrading the central plant without disrupting on-going operations Operating the naval base independent of the utility grid Complying with new federal regulations without adequate appropriations 1) Economics exclude 1993 installation of back pressure steam turbines. http://www.midwestcleanenergy.org/profiles/projectprofiles/greatlakesnaval.pdf Page 20
Example Project: CHP at Evanston Township High School in Evanston, IL Facility Size CHP Equipment installed Generating Capacity Heat Recovery 10 Buildings (1.3 Million sq. ft.) (3) 800 kw Caterpillar Model 3516 Natural Gas Engine Generators (3) Maxim Exhaust Heat Recovery Silencer Units (4) York 520-ton Single-Stage Steam-Fired Absorption Chillers 2.4 MW Installation Date October 1992 Installed Cost Simple Payback Current Annual Energy Savings Supplier 3,600 lb/hr of 110 psig steam $1.5 Million 4.2 Years $354,000 Unable to locate Background: In the early 1990 s, when the school began looking for ways to lower energy costs, ETHS discovered that the combination of a central boiler plant and central absorption cooling system made it an excellent candidate for a CHP system. (CHP) system of Evanston Township High School (ETHS) supplies 2.4 megawatts of electricity and 110 psig steam to the 10 contiguous buildings located on the 65 acre campus. The CHP system operates three 800 kw Caterpillar Model 3516 Natural Gas Engine Generators with three Maxim exhaust heat recovery silencers that recover 1,200 lb/hr each of 100 110 psig steam when operating at full load. The steam is utilized to provide building heat, domestic hot water and absorption cooling to the campus. http://www.midwestcleanenergy.org/profiles/projectprofiles/evanstontownshiphs.pdf Page 21
Micro Grid New York University Natural Gas CHP, USA Combined Heat and Power Plant ordinarily provides efficient energy for the university, but is also connected to the grid When Sandy knocked out the city s power, the plant switched to micro-grid operation Larger buildings and core campus received continued supply through the storm and the following weeks Rest of neighborhood in darkness Additional benefits: 23% CO 2 reduction, utility savings of $5-8m per year. Page 22 IC CC
Virtual Power Plant Munich, Germany Initiative of Munich City Utilities & Siemens Small-scale, distributed energy sources pooled & operated as single installation Improves reliability of planning & forecasting decentralized sources Promotes efficient use of decentralized energy, & greater diversity of sources Enables decentralized sources to operate flexibly either as a single unit, or in island-mode to serve a more localized network Includes cogeneration modules (8MW), hydropower & wind farm (12MW) Distributed Energy Management System Page 23 IC CC
Siemens offers a broad range of energy efficient and sustainable solutions Fossil Power Generation Renewable Power Generation Power Transmission Power Distribution Environmental Technologies Healthcare Mobility Solutions for Industry Lighting (Osram) Building Technologies IT Solutions and Services Page 24 IC CC
Thank you for your attention Ken Geisler Vice President, Strategy NAM Smart Grid Division Infrastructure & Cities Sector Siemens Industry, Inc E-mail: ken.geisler@siemens.com Answers for infrastructure and cities.