sustainable & cost-effective planning with district energy
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Sustainable & Cost-Effective Planning with District Energy
69th Annual KU Environmental
Engineering ConferenceAir, Waste & Energy Management
April 17, 2019
2
Cities Provide Sustainability Opportunities
► Cities continue to
grow and
agglomerate
► Population density
provides opportunity
• Geography
• Scale
• Resources
• Challenges
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Cities Provide Sustainability Opportunities
Source: World Bank - Cities and Climate Change: An Urgent Agenda, Part III Cities’ Contribution to Climate Change
► Sustainable – Environmental Benefit and Repeatable
► Three “Big Picture” Considerations
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Sustainable and Cost Effective Planning
Financial Management
Environmental Stewardship
Operational Excellence
• Construction Cost
• Operations Cost
• Energy Costs
• GHG Emissions
• Pollutants
• Water Usage
• Materials
• Energy Efficiency
• Operations
• Maintenance
• Control
• Cost of Service
• Life Cycle Cost
► Distribution of energy within a defined location to points of use.
► Utilities – Mechanical, Electrical and/or Civil
► Consists of:
• Production Source – Central Plant(s)
• Distribution Network
• Consumer Interconnection
5
What is District Energy?
The Pros
► Reduced Amount of Equipment
• Load Coincidence
► Increase Building Usable Space
► Lower Long Term Installed Cost
► Centralized O&M
► Reduced Operating Personnel
► Higher Efficiency
► Lower Operating Cost
► Environmental Benefits
• Emissions, Water, Noise
► Change to System Effects Everything
The Cons
► Upfront Capital Investment
► Require Forward Planning
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District Energy – Pros and Cons
► Energy Planning
• Define the Bridges from the Current System along
a roadmap to the Future System.
► Why: To Meet Goals
• Growing Service Needs
• Aging Infrastructure
• Improve Efficiency / Life Cycle Costs
• Emissions Reduction
• Improve Redundancy & Reliability
• Land and Space Allocation
• Budget Planning
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District Energy – How do we get it?
► Goal Setting
► Team Building
► Data Gathering
► Option Definition
► Analysis
► Vision Setting
► Best Practices
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District Energy – Energy Planning
► Define the Goals
• Capacity, Reliability, Efficiency
• Environmental Impact
• Expandability / Flexibility
• Duration of Look Ahead
• Operational, Fuel, & Utility Market
• Technology Opportunities
• Integration – Production, Distribution, & Consumption
• Capital Funding Roadmaps
► Define Metrics for Success
• Lowest First Cost, Highest Efficiency, Lowest MTCO2e, Life Cycle Cost
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Energy Planning - Goal Setting
► Define the Team
• Internal Stakeholders
• External Stakeholders
• Decision Makers
► Right Team w/ Right Experience
► Experience Mix
• Financial (Finance, Cost Estimating)
• Technical (Operators, Engineers, Architects, Construction)
• Environmental (Permitting, Sustainability)
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Energy Planning – Team Building
1 1
Energy Planning – Data Gathering
It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.
― Arthur Conan Doyle, Sherlock Holmes
“ “
► Data and Documents
• Load Data, Operations Information
• Engineering Drawings
• Equipment Data
• Financial Data (Budgets, Bills)
► Stakeholder Interviews
► Condition Assessments
• Remaining Life
• General Condition
• Deferred Maintenance
• Plants and Distribution Systems
1 2
Energy Planning – Data Gathering
► Identify the potential solutions
• Plant Locations
• Infrastructure Expansions / Modifications
• Energy Sources Available (Fuel, Power)
• Heating Technology (Steam, Hot Water)
• Cooling Technology (Chillers, Evaporators)
• Combined Heat and Power
• Energy Efficiency Upgrades
• Thermal or Battery Energy Storage
• Renewables (Solar, Wind, Biomass, Geothermal)
• Grey Water Systems
• Distribution System Options
1 3
Energy Planning – Define the Options
But rarely when it comes to big
energy challenges.
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Energy Planning – Define the Options
Silver bullets do exist.
Keep an open mind:
Complex problems can require
complex solutions.
► Scope Definition
• Engineer & Architecture Design
• Level of Detail
► Cost Estimating
• Construction Costs
• Operation & Maintenance Cost
1 5
Energy Planning – Analysis
► Performance Estimating
• Production Performance
• Distribution System Capabilities
• Emissions Impact
• Mass, Water, Thermal Balances
► Interdependence
• Outside air temperature
• Changing point of use requirements
• Cogeneration systems
• Energy storage
• Water use considerations
• Plant impacts vs Building impacts
1 6
Energy Planning – Analysis
► Financial Modeling
• Simple Payback
• Life Cycle Cost
► Discounted Cash Flow
► Future Energy Costs
• Can be a “research" project
• US Energy Information Association (EIA)
• Energy correlation considerations
• Sensitivity analysis can mitigate
► Sensitivity Analysis
• Deterministic or Probabilistic
1 7
Energy Planning – Analysis
► Results Work Session
• Results not equal to Recommendations
► Objectives Being Met?
► Strategy Roadmap
• Identify trigger points
► Communication to Stakeholders
• Performance
• Green House Gas (GHG) Wedges
• Life Cycle Cost
1 8
Energy Planning – Vision Setting
► Make the “Reservations” for the future
• Utility Plant Locations
• Purchased Utilities – Fuel, Water, Power
• Generated Utilities – Thermal, Power
1 9
Energy Planning – Vision Setting
► Think Big Picture and Long Term.
► Identify your “A-Team”
► Dig in on getting the Right Data.
• Garbage In = Garbage Out
► Keep sight of Objectives and make decisions with Data.
► Consider placing financial value to operational and
environmental objectives.
• What cost could be incurred if we don’t meet the goals?
2 0
Energy Planning – Best Practices
► Initiatives
• U.S. DOD Energy Resilience Initiative
https://www.acq.osd.mil/EIE/IE/FEP_Energy_Resilience.html
• District Energy in Cities Initiative
http://www.districtenergyinitiative.org/
• C40 Cities
https://www.c40.org/
► Associations / Agencies
• International District Energy
• International Energy Agency
• ASHRAE
2 1
Industry News
2 2
Questions and Answers
Christopher Bowman, PEManager, OnSite Energy & Power Burns & McDonnellDirect: 816-447-9953Email: cbowman@burnsmcd.com
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