CHP Technologies and Interconnection Analysis - WPUIwpui.wisc.edu/wp-uploads/2017/09/LeFevers.pdf · CHP Technologies and Interconnection Analysis July,16 2017 Presented to NARUC

CHP Technologies and Interconnection Analysis

July,16 2017

Presented to NARUC

Daniel S. LeFevers

Senior Development Leader

CHP Interconnection Equipment Analysis 2CHP Interconnection Equipment Analysis 2

ESTABLISHED 1941

GTI Company Overview

o Independent, not-for-profit

established by the natural

gas industry

o GTI tackles tough energy

challenges turning raw

technology into practical

solutions

o Focus on lower emissions,

higher efficiency and

improved performance of

technologies


Natural Gas Combined Heat and Power

> Efficient option for distributed production of power and thermal energy (e.g.,

steam, hot water)

─ Industrial, institutional, commercial sectors

─ Often entails policy challenges with traditional electric utility business models


Distributed Generation

and CHP

> Standby or Emergency Power: Used for customers that cannot tolerate an interruption of electrical service for either public health and safety reasons, or where power outage costs are unacceptably high

> Peak Shaving: Used by customers to reduce their energy demand during high cost peak periods

> Grid Support: Used by utilities to provide additional power system support during peak power usage and to delay grid investment

> Combined Heat & Power: Combines power and thermally activated technologies to provide customers both power and thermal energy from the power generation process

CHP Interconnection Equipment Analysis 5

U.S. CHP Market

• 82 GW of installed CHP at almost 4,000 industrial and commercial facilities (2011)

• Avoids more than 1.8 quadrillion Btus of fuel consumption annually

• Avoids 241 million metric tons of CO2 as compared to traditional separate production

• Majority of CHP Capacity Currently In Industrial Sector

• Continued growth potential in industrial as well as commercial and institutional sectors.

• Residential products available, but economics are challenging


CHP Technologies Based on Sites

71%Natural Gas

11% Other

24% Boiler/ Steam Turbine

7% Combined Cycle

12% Combustion Turbine

48% Reciprocating

Engine

Existing CHP Sitesby Technology

Source: CHP Installation Database


Natural Gas CHP

Over 2900 natural gas CHP sites with over 58,000 MW of installed capacity. Most natural gas CHP capacity is larger gas turbine systems. Reciprocating engines

have the most number of CHP sites. An additional 484 sites with 1,003 MW run on digester or landfill gas.


<1,000 MW

1,000 – 1,999 MW

2,000 – 4,999 MW

>5,000 MW

Source: ICF Internal Estimate

CHP Technical Potential


0

10,000

20,000

30,000

40,000

50,000

60,000

Cap

acit

y (M

W)

CHP Potential

Existing CHP

Existing CHP (82 GW) vs. CHP Potential (130 GW) by Application

Source: ICF internal estimates

Remaining CHP Potential Is Large


Customer’s Top Reasons for Acquiring Onsite

Generation

1. No Worries About Outages and

Blackouts

2. Save Money on Energy Bills

3. Independence From Electric Utility

4. Greater Energy Cost Predictability

5. Help the Environment

6. Home Office Needs

7. Medical Equipment Needs

Residential Customer Survey. Source: Primen

Electric reliability is a key customer driver.

Available standby generators help satisfy a portion of customer concerns


CHP “Spark Spread” and Payback

Source: GE


1-5 MW Prime Movers: Gas Engines Are Dominating

> 1-5 MW gas engines have substantially improved during past two decades

─ Outpacing gas turbines in this range

─ Achieving over 40% electrical efficiency

> Strong competition from several players

─ Caterpillar, Cummins, GE (Waukesha, Jenbacher), Wartsila


Ultra-Low Emission Controls for Stationary Gas

Engines

13

> Collaborative program with SoCal Gas,

Continental Controls, and CEC

> Developed and demonstrated ultra-low

emission control system for stationary

rich-burn engines

─ Meets strict CARB 2007 CHP/DG

standards


Industrial FlexCHP Power & Steam Package

> Fully integrated high-efficiency ultra-clean power and

flexible steam production

─ NOx emissions below 0.07 lb/MWh (for strict California standards)

─ Power generation using

microturbine

─ Waste heat boiler fed with

turbine exhaust gas plus

ultra-low-emission

supplemental burner

> Variable steam output

─ 85% system efficiency


< 10 kW Market Landscape

Ele

ctr

ica

l E

ffic

ien

cy (

LH

V)

System Capacity (kW)

0 5 10 15 20 25 30 35 40 45 50

5%

10%

15%

20%

25%

0%

30%

35%

40%

45%

50%

55%

60%

+

X

IC Engine (CHP)

Solid Oxide Fuel Cell

Stirling Engine

X Organic Rankine Cycle

+ Thermal Acoustics

Microturbine

There are others not considering the US

market or in very early-stage

development

IC Engine (CCHP)

☼ Modified Rankine Cycle

MFR Model UL/ETLStage

Development Stage

4 – Alpha prototype (lab)

5 – Beta prototype (field)

6 – Demo pre-production

7 – Commercial ready

BlackInverter CARB Led by

SOLIDpower BlueGen No NoYes Yes/? P

SOLIDpower EnGen No4 NoYes Yes/? P

Kyocera SOFC No5 NoYes Yes/? P

ARPAe - No4 -- Yes/? -

Nirvana Power Stick No4 YesYes Yes/? HW

Aisin NextAire Model F No4 YesYes No C

Aisin Coremo No?6 YesYes No P/HW

Marathon ecopower Yes NoNo Yes/? HW

Yanmar CP5WN Yes OptionYes No P/HW

Baxi/Microgen Ecogen No5 NoYes No HW

Navien Hybrigen No NoYes No HW

M-Trigen PowerAire Yes YesYes No P/HW/C

MTT Ener Twin No5 NoYes No HW

6

7

7

Qnergy SmartBoiler Yes NoYes No HW

☼

iGEN i2 No4 YesYes No SH

Brash - No4 NoYes No HW

6

6

6


10-50 kW Market Landscape

Ele

ctr

ica

l E

ffic

ien

cy (

LH

V)

System Capacity (kW)

0 5 10 15 20 25 30 35 40 45 50

5%

10%

15%

20%

25%

0%

30%

35%

40%

45%

50%

55%

60%

MFR Model UL/ETLStage BlackInverter CARB Led by

Green Turbine 15kW No4 NoYes No P

2G Energy G-Box 50 Yes7 YesNo No P/HW

Yanmar CP35D1 Yes7 OptionYes No P/HW

Tecogen Micro T35 Yes7 OptionNo Yes/? P/HW

AO Smith Micro-CHP No4 NoNo No P/HW

Fiat/Chrysler Totem Yes6 YesNo No P/HW

EC Power XRGi 25 No6 NoNo Yes/? P/HW

IC Engine (CHP)

Solid Oxide Fuel Cell

Stirling Engine

X Organic Rankine Cycle

+ Thermal Acoustics

Microturbine

There are others not considering the US

market or in very early-stage

development

IC Engine (CCHP)

☼ Modified Rankine Cycle

Development Stage

4 – Alpha prototype (lab)

5 – Beta prototype (field)

6 – Demo pre-production

7 – Commercial ready

Yanmar CP10WN Yes7 OptionYes No P/HW

2G Energy G-Box 20 No4 YesNo No P/HW

☼


OVERVIEW OF CHP

INTERCONNTECTION ANALYSIS


CHP Interconnection Study Approach

Review published interconnection standards, requirements, and tariffs

Review specifications for generator and protection equipment

Identify and interview key stakeholders


Report Goals

> Identify and compare common interconnection standards, practices, and issues in several representative electric utility regions

> Explain common concerns that electric utilities have with interconnected distributed generation

> Review common behind-the-meter equipment (e.g., generators, electrical protection devices)

> Explore administrative and technical differences between interconnecting solar PV and CHP systems

> Understand and leverage experiences from recent widespread deployment of solar PV


State Interconnection Standards for Distributed

Generation

> Standards: 33 statesGuidelines: 13 states

> Max. system size varies

> Some only for net metering

> Most DG for onsite use

> Vary in flexibility given to interpretation/application by utilities


Capacity Covered by

Standard Interconnection Requirements

Max. System Capacity State/Province

30 kW KY*

1 MW AB*, NH*, SK

2 MW FL*, NY, WV

5 MW PA*

10 MW CO, DC, IA, MD, MN, ON, OR, SD, TX

15 MW WI

20 MW CT, NV, OH, UT, VA, WA

80 MW NM

None CA, HI, IL, IN, MA, ME, MI, NC, NJ, RI, VT

* only applies to net-metered systems

Source: DSIRE 2015, Manitoba Hydro 2011, OEB 2005, SaskPower 2005, ADGTPC 2002


State and Provincial Standards that were Reviewed

State/Province

Standard Authority Maximum Capacity

New York New York StandardizedInterconnection Requirements (SIR)

New York Public Service Commission (PSC)

2 MW

California Rule 21

Wholesale Distribution (Access) Tariff (WDAT/WDT)

California Public Utilities Commission (CPUC)

Federal Energy RegulatoryCommission (FERC)

None specified

None specified

Ontario Ontario Distribution System Code (DSC)

Ontario Energy Board (OEB) None specified

Minnesota Order Establishing Standards,MN Laws 2001, Chapter 212

Minnesota Public UtilitiesCommission (MPUC)

10 MW


Interconnection Standard Contents

Standard Application/Approval Process

Application Forms

Technical Requirements

Interconnection Agreements

CA Rule 21

SCE WDAT (CA)

PG&E WDT (CA)

MN PUC

Xcel Energy (MN)

NY SIR

NGrid SIR (NY)

ConEd SIR (NY)

Canada C22.3

Ontario DSC

Hydro One (ON)

included not included


Stakeholders Interviewed

• Technical staff at electric utilities and local distribution companies

• CHP developers in various service territories

• Subject matter experts and equipment vendors


Utility Concerns

Islanding

Fault current

Utility-generator

synchronism

Power quality

Voltage regulation

Redundancy

Distribution system impacts

ConclusionsTechnical Findings


Synchronous Generators

> More challenging to receive utility approval for interconnection compared to induction generators or inverters

> Protective functions and equipment required to

─ Limit generator fault current

─ Ensure grid synchronization

─ Safe islanding (disconnected) operation if grid failure occurs

> Modern multi-function protective relays shown to address utility concerns

─ Over 20 years in the market – should be accepted by any utility


Inverters

> Widely used with fuel cells, microturbines and some engines

> In some utility territories, CHP inverters receive same treatment as solar PV

inverters

> In other utility territories, additional protection is required

> Utilities often do not require protection beyond

that which is embedded in smaller PV inverters, but this treatment is not

always given to CHP systems with inverters


Certified Equipment Lists

> Using equipment on utility/PUC certified lists allows

for faster and cheaper interconnection application

and approval process

> NY, CA previously listed many types of equipment,

but now only include inverters


Additional Protective Relays

> CHP generator packages commonly have onboard

active anti-islanding protection and other features

within generator controls

> Utility often requires additional protective devices,

even if tested and certified to applicable standards

(e.g. UL 1741), adding significant cost

─ This to many experts appears excessive


Reverse Power Protection &

Import Setpoints

> Net metering rules for solar PV allow for export of power

> Utilities often have large power import setpoints for CHP

─ Often required to shut down after 2 sec. of reverse power flow

─ This makes the sale of electricity to the grid impossible

─ Utilities often only allow large CHP systems to sell power into the grid unlike solar PV

> More relaxed power export restrictions, in line with

solar PV, could allow CHP to meet utility sustainability goals


Lockable Disconnects

> Universal requirement for visible, lockable disconnects

> Location varies

─ Outside, easily accessible to line maintenance crews, fire service

─ Inside, in electrical rooms

> Outside disconnects can cost substantially more, so indoor is more desirable

from project finance point of view

> Interviewees observed disconnects not used during Hurricane Sandy outages

and line maintenance

ConclusionsNon-Technical Findings


Preferential Treatment

> CHP rarely receives same treatment given to certain other technologies (i.e., renewable energy), despite significant GHG emission and efficiency benefits

─ In CA, not eligible for net energy metering

─ In MA, eligible for net metering up to 60 kW (other tech ≤ 2 MW)

> Even CHP systems with inverters not always treated the same as solar PV, despite similar technical features

> CHP therefore faces

─ More elaborate approval processes

─ Extra costs (interconnection study, standby charges, etc.)

─ More difficulty exporting power


Interconnection Approval Times

> Study/approval times longer than desirable

> Review times have improved with standard interconnection processes

> Target timelines not always met

─ What recourses exist for CHP customers?

> Of particular concern for large industrial companies,

who expect project timelines to be aligned with

project finance needs


Application and Study Costs

> Costs (to developers) vary significantly across utilities

> Costs often unknown before submitting application

─ Cost could be reduced by allowing developers to use outside firms to perform interconnection study

─ One opportunity may be for utility to create template that could be utilized by outside firms

> Applications submitted before financial commitment to find out cost of study and necessary upgrades

─ increases total number of applications

─ burdens utility staff

─ slows down processing time for all applicants


Interconnection Standardization & Harmonization

> Current interconnection standards have helped, but more progress is needed to encourage CHP and other distributed energy technologies

> Knowledge, experience from solar PV interconnections can inform CHP system interconnection requirements

> Equal treatment of all technologies not yet achieved

─ from technical and safety point of view, or

─ on administrative basis

> Broader acknowledgement of environmental and efficiency benefits could help CHP achieve more equal treatment in terms of net metering and power exporting

> More neutral policies enabling incidental exporting would allow CHP systems to meet more onsite load, and more favorable economics

Next Steps


Recommendation:

Interconnection Best Practices

> Assemble case studies from regions with wide adoption of CHP (and other

distributed generation technology)

> Use these to show how existing barriers and hurdles

to interconnection can be overcome

> Highlight key issues, e.g.

─ Need for reverse power protection, potential for

relaxed requirements

─ When outdoor disconnect switches are required and

when electrical room mounting is acceptable

─ Streamlined application and approval processes for small CHP (harmonized with solar

PV processes)


Recommendation:

Natural Gas as Backup Generator Fuel

> Opportunity for CHP:

─ Inverter-based and synchronous generators can operate both in parallel and standalone

─ CHP as a backup generator would increase economic value and grid resiliency,

─ Natural gas-fueled CHP can support the electric grid during high demand, and

─ CHP can simultaneously meet environmental and efficiency policy goals, improve grid reliability and meet infrastructure resiliency goals

> However, numerous codes require that backup/emergency generators have onsite fuel storage in many applications

> Need to prove reliability of natural gas for backup/emergency generation, and value that CHP can add at sites and to the system as a whole

> Recommend assembling case studies and natural gas reliability data to make the case for natural gas as a fuel source for backup/emergency generation


Residential/Commercial Space Conditioning

Electric heat pumps - Combi space heating/cooling/DHW

─ Evaluation of Daikin Altherma electric heat pump

Evaluation of residential ERVs for energy recovery

Heat distribution technologies

─ Enhanced heat transfer fluids for radiators

Liquid-desiccant A/C electric savings

─ Split sensible/latent load management

─ Supplemental dehumidification in residences

Combined commercial cooling/heating equipment

─ Rooftop units

─ Thru-the-wall units, etc.


Residential/Commercial Water Heating

Absorption heat pump water component R&D

─ Low Btuh burner

─ Solution pumps

─ Electronic expansion valves

─ Component reliability testing

Prototype lab and field testing


Income Eligible RHA HVAC Field Test and Analysis

Elec and Gas savings project

─ GTI (Prime for IL DCEO)

─ Commonwealth Edison

─ Nicor Gas

─ Franklin Energy

Low-income Housing

─ Building envelope retrofit

─ Condensing modulating furnaces

─ Electric heat pumps (no previous AC)

─ Energy recovery ventilators

─ Condensing water heaters

─ Lighting and utility fixtures

Rockford Housing Authority

Blackhawk CourtsLow-income Housing50% Energy Savings

196 Units

Documents

CHP Technologies and Interconnection Analysis - WPUIwpui.wisc.edu/wp-uploads/2017/09/LeFevers.pdf · CHP Technologies and Interconnection Analysis July,16 2017 Presented to NARUC