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Geothermal Heating and Cooling A New Way to Realize the Benefits October 2017 Christopher A. Cavanagh, PE

Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

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Page 1: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Geothermal Heating and Cooling

A New Way to Realize the Benefits

October 2017 Christopher A. Cavanagh, PE

Page 2: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Reforming the Energy Vision (REV)

Framework

Creating market-based

sustainable products and

services.

Enabling distributed

energy resources to

manage load and

optimize systems.

Empowering customers

to manage energy use

and reduce energy bills.

REV Core Policy

Outcomes

Customer Knowledge

Market Animation

System Efficiency

Fuels and Resource Diversity

System Reliability & Resiliency

Carbon Reduction

REV is the NYS proceeding to transform

the New York electric energy industry

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Page 3: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Background{ Residential Heating

and Cooling Energy Use

• NY’s households are more than 20% higher than the national

average.

Source: Residential Energy Consumption Survey EIA 2009.

https://www.eia.gov/consumption/residential/reports/2009/state_briefs/pdf/ny.pdf

Page 4: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Co2 Equivalent Heating Emissions for

Long Island

Page 5: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

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Comparative Heating Costs for Long Island

Page 6: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Empowering Customers and Animating

Markets with Geothermal Energy Systems

What is it?

Geothermal energy systems are proven heating and

cooling systems that exchange heat underground.

Geothermal energy systems take advantage

of a near unlimited and steady access to

moderate temperature water.

Why?

Customers

The net affect for customers is a very high effective efficiency for

heating and cooling with savings of more than 70% for heating

and 30% for cooling

One unit provides heating & cooling (all inside & less floor space)

Societal

Substantial direct and indirect benefits in terms of environmental

improvement and economic development.

Utility peak load management (gas and electric)

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Page 7: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Support for Current Policy

Access to low cost heating

Declines in the cost of natural gas has led to a significant

reduction in heating costs only where gas service is available

There is a sharp discontinuity in heating costs where natural

gas service can be made available and where it can not.

Environment

NY State has adopted a goal of 80% carbon reduction by 2050.

A geothermal system alone can reduce LI greenhouse gas

emissions by more than 60%1 in CO2 equivalent

Economic Development

While savings are significant, Geothermal systems have a

substantially higher capital cost which favors job creation.(1) calculated for Zone K (Long Island) Marginal Emission emissions rates for generation and SEER of 32 for cooling

and SCOP 4.7 for electric heating compared to new conventional 80% oil fired boiler and SEER 12 A/C.

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Page 8: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Strong Recent Local Community Support

8

NYC Intro 609 of 2015Valley Stream, 9/14/2015

Page 9: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Geothermal Heating and Cooling

Common Undergrounds Assets

“The primary GHP market failure is the expectation that building

owners finance the ―GHP infrastructure, or outside-the-building

portion of the GHP system, such as the ground heat exchanger.”

“Geothermal (Ground-Source) Heat Pumps: Market Status, Barriers to Adoption, and Actions to Overcome Barriers”

Oak Ridge National Laboratory, ORNL/TM-2008/232 December 2008

Page 10: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Background on National Grid

National Grid – New Energy Solutions

NES – We are an agile team focused on developing and launching innovative solutions and technologies that unlock value for National Grid’s customers and communities, accelerating progress towards a sustainable future

What can we do for our customers and communities

What about those that are in our communities but can’t serve them today

Test and Learn Demonstration approved through 2016 KEDLI Rate Case (16-G-0059)

Geothermal Demonstration

Many NY residents do not have immediate access to clean Natural Gas

Rely on higher carbon fuels

Alternative to new gas infrastructure?

Page 11: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Physical installation of geothermal heat pump (GHP) systems.

Determine

Technical and economically viability of GHPs

Evaluate the installation and operating costs

Viable option to mitigate growing peak demand for natural gas

Viable option to provide low-cost heating to unserved gas communities or

gas constrained areas

Potential for utility ownership or other business models

GSHP are tested and have performance ratings from AHRI. However if the

underground geothermal heat exchangers are poorly design, it can affect

the overall system.

Evaluate potential benefit streams including:

Customer energy savings

Gas utility benefits

Electric utility summer peak load and winter baseload

Environmental and social benefits

Timing: GHP systems installed in Glenwood Village for the 2017/2018 heating season

Gas REV Geothermal Demonstration

Project Objectives

Page 12: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Potential Benefits of a Shared Loop

Capital Efficiency

Minimize Mobilization Costs

Proactive loop construction

Larger scale projects

Customers join systems over

time when they are ready

Independent financing of the

loops/s not dependent on energy

throughput

Longer term and lower costs

financing for loop than heat pump

Energy Efficiency

Efficiency benefits if there

is simultaneous heating

and cooling

Heat pump equipment

operational coincidence

Page 13: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Gas REV Geothermal Demonstration

Glenwood Village Loop Field Design

Page 14: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

A Long Island Collaboration

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Design Build Contractor Customer

Monitoring and

Verification

Cost Share and Pre-

installation Energy Audits

Page 15: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Geothermal Heating and Cooling at Glenwood Village: Technical Description

Deep Earth Temperature (TG) – 55 °F

The Average annual ground temperature below 20 ft. in this region remains at this constant temperature

Formation Thermal Conductivity – 1.63 BTU/hr-ft-°F

Physical property of the ground that determines how easily heat can pass through it

Knowing this value is a prerequisite for a properly designed geothermal system

Formation Thermal Diffusivity – ≈ 1.21 ft2/day

Physical property of the ground that determines the speed of heat propagation by conduction

The higher the value, the faster the heat is diffused into the ground

Undisturbed Formation Temperature – ≈54.1°F – 55.9°F

This is the temperature at the bottom of the borehole if undisturbed or 24 to 36 hours after the borehole is left alone

This temperature is important to determine the thermal grouting mixture required to set

The Geothermal Heat Exchanger

20 boreholes using 1.25 inch High Density Polyethylene (HDPE) Pipes at an average vertical depth of 225 feet. That’s approximately 9,000 feet of pipes

combined.

20 boreholes will be connected to a main manifold feeder to provide service to 10 individual homes at Glenwood Village

Page 16: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Long Island Geology

Region H UG – Upper

Glacier

Gc – Gardiners

Clay

Mg – Monmouth

Group

M – Magothy

Aquifer

Rc – Raritan Clay

L – Lloyd Aquifer

Br – Bedrock

Magothy Aquifer is

the main drinking

source for Suffolk

and half of Nassau

Page 17: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Gas REV Geothermal Demonstration

Geothermal Offering at Glenwood Village Geothermal heating and cooling

Diverse generation of manufactured

homes from the 1970s to 2017

Building sizes range from 1,008 sq. ft. to 1,566 sq. ft.

Some Homes required home improvements. PSEG LI provided

free audits

Diverse heating and cooling behaviors and requirements

Properly sized individual homes with Manual J Load

Calculations

Geothermal heat pumps

Featuring Enertech Hydron Modules

High efficiency unit available on the market

Packaged – EER 31.3 COP 5.1

Split system- EER 25.3 COP 4.2

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Gas REV Geothermal Demonstration

United Way Long Island – Homeless Housing

for Veterans – Group Home

Medford NY – Status: Planned

Single Family Residential Low-Income Housing

United Way Mission to building sustainable homes to be healthy,

easily maintained, and energy efficient

ENERGY STAR rated home

Future proofing energy costs for low-incoming homeowners

Offering at for United Way and Association for Mental Health and Wellness

Geothermal Ground heat Exchanger 3 Ton system individual system

Featuring WaterFurnance 7 Series

Desuperheater for DHW

Highest efficiency unit available on the market

Packaged EER=37 COP=5.3

Source: http://www.unitedwayli.org/HousingandGreenBuilding

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Future Financial Options

Below Ground (70% of Cost)

Under public and/or private property

Options evaluated (one or more)

Initially a Utility Asset

(capital and O&M)

New Connection Tariff (similar to 100ft rule for gas service)

Fixed Monthly Access fee (not metered)

Third-party ownership

NY Green Bank

Shared Savings

Above Ground (30% of Cost)

Consumer Financing

30% Federal Tax Credit

Low-interest financing possible through the Home Performance with

ENERGY STAR®

ETIP

19

Ueful life

Typical

Tax

Asset

Heat Pump 15-20 yrs 5 yrs

Gas Piping 40-50 yrs 20 yrs

Page 20: Geothermal Heating and Cooling A New Way to Realize the ... · Geothermal Heating and Cooling Common Undergrounds Assets “The primary GHP market failure is the expectation that

Going Forward

With your help we can lead the way in creating the

climate for change

[email protected]