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Phoenix Convention Center • Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini Pepco Energy Services August 11, 2015

Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

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Page 1: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Phoenix Convention Center • Phoenix, Arizona

Combined Heat & Power – The Basics

Integrated Energy Combined Heat & Power(Making a Comeback)

Bob AlbertiniPepco Energy Services

August 11, 2015

Page 2: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

Combined Heat & Power Overview

• Overview– Basic concept– Typical configuration &

components• Benefits• Characteristics of a

good opportunity• Market drivers• Case studies

Page 3: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

CHP Overview – Distributed Generation

• Distributed Generation:– An electric generator;– Located at-or-near the end user;– Generates at least a portion of the electric load

• Typical DG Technologies:– Engine Generators– Turbine Generators– Solar Photovoltaic– Wind Turbine– Fuel Cells

Page 4: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

CHP – Basic Concept

• CHP is:– A specific type of Distributed Generation– The simultaneous production of electricity and heat from a single fuel source– An integrated energy system (not a single technology) that can be modified

depending upon the needs of the energy end user– Highly efficient

• CHP: – 70% to 80%

• Separate Elec. &Thermal– 40% - 50%

‒ Can use variousFuels:

• Natural Gas• Landfill/Biogas• Biomass

Page 5: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

Thermally Activated Machine

“Prime Mover”

CHP – Typical Configuration

• Use fuel to first Generate Power, then• Capture resulting heat for use as:

– Heating– Cooling– Both

Page 6: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

• Prime Movers (Converts fuel input to mechanical shaft power)

– Reciprocating Internal Combustion (IC) Engine– Combustion Turbine– Steam Turbine– Microturbine

• Electrical Equipment– Generator (Converts mechanical shaft power to electrical energy)

– Step-up transformer & grid interconnection gear• Heat Recovery Equipment

– Heat recovery steam generator (HRSG)• Thermally Activated Machine/Thermal Load

– Energy transfer stations/air handling units– Process Heat– Economizer– Absorption or steam driven chillers

CHP – Typical Components

IC Engine Microturbine

HRSG

Transformer

Absorption Chiller

Combustion Turbine

Page 7: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade7

Reciprocating IC Engine Gen.

Combustion Turbine Steam Turbine MicroTurbine

Advantages

•Fast Start up•Hi part load efficiency•Island mode capable•Operates on low pressure gas

•High Reliability•Low Emissions•High-grade Heat•No cooling required

•High overall efficiency

•Any fuel type•Long working life•High reliability

•Small # of moving parts

•Compact size & wt.•Low emissions•No cooling required

Disadvantages

•High maintenance costs

•Low temperature thermal output

•Higher emissions•Needs cooling

•Requires gas compression

•Poor efficiency at low loads

•Output varies w/ ambient temp

•Slow start up•Low power to heat ratio

•High costs•Low temp. thermal output

•Lower mech. Efficiency

Typical Sizes < 5MW 500kW – 300MW 500kW – 300MW+ 30kW – 1MWInstalled Costs

$/kW 1,500 – 2,900 1,200 – 3,300 670 – 1,100 2,500 – 4,300

O&M Costs ¢/kWh 0.9 - 2.5 0.9 - 1.3 0.6 – 1.0 0.9 – 1.3

Availability 92% – 97% 90% – 98% Near 100% 90% – 98%Part Load OK Fair - Poor OK OK

CHP – Typical Components – Prime Movers

Page 8: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

• Electrical Generator‒ Converts mechanical shaft power to electricity‒ Typical output voltage

• IC Engine: 480V – 4,160V• Gas/Steam Turbines: 4,160V – 13,800V• Microturbines: 480V

‒ Typically synchronous • Can produce power during grid blackouts

• Grid interconnection‒ Several Grid Interconnection Standards

• IEEE 1547; FERC Order 2006; State-specific standards‒ Required for safety, grid integrity, equipment protection‒ Parallel Operation is typical/preferred

• Export mode Flexible CHP system sizing• Non-export mode Load following

8

Generator on IC Engine

CHP – Typical Components – Electrical Equipment

Switchgear

Page 9: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

• Heat is recovered from:‒ Hot water‒ Hot exhaust gas‒ Steam

• Typical uses:‒ Jacket water Boiler economizer, space/process heating‒ Exhaust gas Heat recovery steam generator (HRSG)

• Steam • Energy transfer stations• Air handling units• Absorption/steam chillers• Industrial processes

9

Absorption Chiller

Air Handling Units

Economizer

HRSG

CHP – Typical Components – Heat Recovery

Page 10: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

Why Pursue a CHP Project?

• Reduced Energy Costs– Efficient Fuel Utilization– Waste Heat captured for useful work– No transmission and distribution losses

• Improved Electric Reliability – Reduced susceptibility to grid failures

• Improved Energy Security– Generation is “on-site”– Particularly applicable to Military Bases

• Improved Power Quality– Reduced line losses/steady voltage

Energy Distributions for a Typical Reciprocating Engine

Shaft Power to Drive Load

(30%)

Jacket Coolant (30%)

150oF – 250oF

Exhaust (20%)850oF

ExhaustNot Recovered (15%)

Radiation (5%)

Fuel

Inpu

t Ene

rgy

(100

%)

Reco

vera

ble

Ener

gy (8

0%)

Page 11: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

What Makes a Good CHP Opportunity?

Combination of Technical, Financial, Regulatory Factors• Technical

– Long operating hours (>5000 hrs/yr)– High, coincident, electrical & thermal loads (>4000 hrs/yr)– Existing and aging central plant– Power quality/reliability issues

• Economic/Financial– Wide spark spread – Low or no standby charges/penalties– Access to Funding/Financing

• ESPC’s/UESC’s• Utility Rebates and Incentives

• Regulatory/Utility– Favorable permitting environment– Simple, clear, fair interconnection requirements

Technical

Regulatory/ Utility

Economic/ Financial

Strike Zone

Page 12: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade

CHP Market Driver – Stable, Low Gas Prices

Henry Hub Gas Prices expected to Remain between $3.00 and $6.00 thru 2030

ICForecast: Natural Gas – Strategic Forecast, Q3 (July) 2015 Base Case

Page 13: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade13

Spark Spread Improving for CHP

0.00

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16.00

1967

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Year

Avg. Commercial Natural Gas Price Avg. Commercial Retail Electricity Price

$/M

MBT

U

Cen

ts/k

wh

Historical Forecast

ForecastSpark Spread

Page 14: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade14

• UESC Financed Project• PES designed, permitted and built • SGT-600 23MW combustion turbine

– Inlet air cooling– 1200 HP gas compressor

• Dual fuel capability• 100,000 lbs/hour steam unfired• 180,000 lbs/hour steam fired• Interfaces to existing systems• Interconnect with PEPCO/PJM• 15 year O & M contract • Provision for Temporary boilers• 2011 CHP Energy Star Award

CHP Case Study – National Institutes of Health (NIH)

Page 15: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade15

• Solar Taurus 60 5.7MW Combustion Turbine – Dual fuel Capability– Inlet air cooling

• Turbine heat recovery provides base load steam demands– 27,000 lbs/hour steam unfired– 65,000 Lbs/hour steam fired

• 350 HP gas compressor• Power export

– Interconnect ACE/ PJM• PES designed, permitted, built• Reduces overall site emissions• 2015 CHP Energy Star Award

CHP Case Study – PES Owned Midtown Thermal Plant

Page 16: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade16

• 15 MW Combined Heat and Power (CHP) facility– Three 4.6 MW Solar Mercury 50 low-nitrogen oxide gas

turbines– Digester gas cleaning and compression– Heat recovery steam generators, duct burners– Backup boiler

• Uses biogas from DC Water’s water treatment process to produce steam and electricity– Steam returned and used in DC Water’s treatment

process• Contract value

– Construction: $82 million– O&M: $90 million

• Schedule– Contract signed February 2012– Construction begins Summer 2012– Construction completion August 2015

• 15-year O&M Phase begins

CHP Case Study – DC Water

Page 17: Phoenix Convention Center Phoenix, Arizona Combined Heat & Power – The Basics Integrated Energy Combined Heat & Power (Making a Comeback) Bob Albertini

Energy Exchange: Federal Sustainability for the Next Decade17

Questions & Contact Information

Bob AlbertiniPepco Energy Services

[email protected]