Gunnar Walmet

New York State Energy Research and Development Authority

Albany, New York

Distributed Generation - Combined Heat and Power (DG-CHP)

Connecticut’s Energy Future

• A Public Benefit Corp established in 1975 by State Legislature

• Mission: To identify solutions to State’s energy challenges in ways that benefit the State’s economy and environment

• Forge public/private partnerships with businesses, municipalities, residents, and other energy stakeholders to accomplish this goal.

New York State Energy Research and Development Authority (NYSERDA)

NYSERDA Responsibilities

• Energy Research, Development, and Demonstration

• System Benefits Charge Administrator

• Energy Planning & Analysis

• Power Plant Siting Board Member

• Greenhouse Gas Task Force

• West Valley Demonstration Project

• Spearheading EO # 111

• And Now Administrator of Renewable Portfolio Standard (RPS)

New York’s Energy $mart (SBC) Program

• Public Service Commission established System Benefits Charge in 1998 to ensure energy R&D and energy efficiency service were maintained during transition to competition.

• Named NYSERDA as administrator of programs

• NYSERDA administers programs under New York Energy $martSM umbrella

• Provides services to commercial, industrial, institutional, municipal, and residential customers with emphasis on low-income consumers

• Focus on supporting market-based efforts to remove barriers to energy efficiency and renewable energy

NY SBC Program Budget Allocation ($787 Million thru June 2006)

Energy Efficiency $438 M56%R&D

$208 M26%

REAP/ Low-Income $141 M18%

Energy Efficiency Services

• Technical Assistance Program

• Peak-Load Demand Reduction Program

• New Construction Program

• Smart Equipment Choices

• New York Energy $martSM Loan Fund

• Commercial/Industrial Performance (CIPP)

REAP/Low-Income

• Res Tech Technical Assistance

• Energy Star Labeled Homes

• Home Performance with Energy Star

• Keep Cool (renamed Stay Cool in 2004)

• Assisted Multifamily

Visit getenergysmart.org for more info.

NYSERDA’s R&D Program

• Created nearly 1200 permanent jobs

• Helping 200+ businesses stay competitive and remain in New York

• Successfully introduced over 140 NYS energy or environmental products/services into commercial use

• $200 million in cumulative sales for products developed through NYSERDA funding

Since 1991

New York Energy $martSM Budget for Renewables, Distributed Generation and Combined Heat &

Power11%

5%

1%

4%

3%

35%

34%

7%

Next Generation

Daylight, etc

Wastewater

Secure Power

Inst. Barriers

Monitoring

Renewables

DG/CHP

$208 Million over 5.5 years$37.8 Million per year

Distributed Power Generation (DG)

DG: Fossil fuel or renewable fuel based power generation close to load/demand.

• Renewables: PV, Wind, Biomass, landfill/digester gas, etc.

• Fossil Fuel: Diesel, Natural Gas.

DG Applications: Premium Power, Back up/Standby, Peak Shaving, Base load/CHP

Cost of DG Power

$/kWh

Operating Hours per year2000 4800 8760500

Premium Power

Peak Shaving

Baseload/CHP

.05

1.0

10

.25

Backup/Standby

Combined Heat and Power (CHP)

CHP: Onsite coincident production and use of electrical or mechanical power and thermal energy.

Benefits of DG/CHP

• Fuel “in” at one place, multiple benefits “out” yields financial savings.

• Diversification of energy supply sources yields greater reliability ====> Energy Security.

• Return on investment:

DG/CHP ====> every day.

Emergency generator ====> sporadically.

Fuel “in” at one place, multiple benefits “out”

How DG Technologies Compare?

New York’s Existing CHP Capacity: 5,070 MW

Industrials Represent 78% of Existing CHP in New York

Paper17%

Chemicals11%

Other Industrial

24%

Comml/Inst22%

Metals26%

Source: Energy Nexus Group

Industrial Potential: 1948 MW60% is in Systems Below 5 MW

> 20 MW

50 - 500 kW

5 - 20 MW

1 - 5 MW

0.5 - 1.0 MW

Commercial/Inst. Potential: 6529 MW 78% is in Systems Below 5 MW

New York’s CHP Technical Potential 8,477 MW (Thermal Demand Sized)

www.nyserda.org/CHPFinalReport2002WEB.pdf

Cumulative CHP Market Penetration Projection by 2012 in NYS (MW)

CHP System Size Business As Usual Accelerated

0.05 to 0.5 MW 0 61

0.5 MW to 1 MW 92 331

1 MW to 5 MW 204 699

5 MW to 20 MW 208 704

> 20 MW 260 374

Total 764 2,169Note: 0.05 MW = 50 kW 0.5 MW = 500 kW

CHP Benefits At Full Market Penetration

CHP Benefits Business As Usual Accelerated

Economic Savings ($ million)

2012 Annual $109 $487

Cumulative (02-12) $536 $1,825

Net Present Value $253 $808

Energy Savings (trillion Btu)

2012 Annual 25 74

Cumulative (02-12) 118 316

Annual Emissions Savings After 2012(tons/year)

NOx 3,210 10,282

CO2 1,259,000 3,854,000

SO2 9,778 27,766

Potential Additional CHP in NortheastComm. (MW) Indust. (MW) Total (MW)

Connecticut 1,303 676 1,979

Massachusetts 2,608 1,105 3,713

Maine 411 232 643

New Hampshire 388 164 552

New York 7,643 1,982 9,625

Rhode Island 414 128 542

Vermont 238 82 320

Total Region 13,005 4,369 17,374Source: Bruce Hedman, Energy and Environmental Analysis, Inc. November 2003

www.eere.energy.gov/de/technologies/euii_chp_app_rac.shtml

$300,000 DOE Funding for NERAC

Special Projects in New York - FY 2003

www.northeastchp.org

 

Northeast Regional Combined Cooling, Heating and Power Applications Center

Mission: Facilitate the technology transfer and deployment of advanced CHP.

Region: 7 state region of Northeast USA.

Services: Education, outreach, and technical assistance.

Constituency: CHP for both buildings and industrial settings.

Guidance: State Advisory Board, NECHPI.

DOE Funding$300,000

Center Co-DirectorshipsPace Energy ProjectUMass Center for Energy Efficiency and Renewable Energy

New York’s DG (/CHP) Incentives• $15 Million SBC Funds through NYSERDA

• Standby Service Rates: CHP Exemptions and Phase-ins

• Std. Interconnection Requirements (in Update)

• Electric Utility DG Pilot Program (Grid Upgrade vs. DG)

• DG Gas Distribution Prices + Gas Utility DG Programs

• State Education Dept Funding for K-12 Schools

• NYC EDC – Energy Cost Savings Program

• Elimination of flex-rate deterrent

• Air Emissions Standards (in development)

• Emissions Reduction Credits (in development)

NYSERDA’s DG-CHP Program• Develop & Demonstrate Innovative DG Technologies &

CHP Applications

• Support site-specific and sector wide feasibility studies and replication

• Monitor Performance and Reduce Hurdles through Shared Knowledge

• Install Megawatts of Generation Capacity

• Funding: Cost share of 30 – 60% of Project cost subject to a cap of $1 million per project

Other States with SBC-like Funds & DG/CHP Interest

• California – Self-Generation Incentive Program and California Energy Commission’s DG Programs

• New Jersey – DG-CHP Incentive Programs (in Development)

• Massachusetts – Renewables Incentives, Mass Tech Initiatives

• Connecticut – Support for Fuel Cells, Connecticut Clean Energy Fund

• Texas and Others?…..

California’s Self-Gen Program

Eligible Technology IncentiveMax % of

Project CostSystem Size

LEVEL 1 Photovoltaic, Fuel cells operating on renewable fuels, Wind turbines

$4,500 per kW 50% 30 – 1,500 kW

LEVEL 2 Fuel cells operating on non-renewable fuel and utilizing waste heat recovery

$2,500 per kW 40% Up to 1,500 kW

LEVEL 3-R Micro-turbines, internal combustion engines and small gas turbines operating on renewable fuel

$1,500 per kW 40% Up to 1,500 kW

LEVEL 3-N Micro-turbines, internal combustion engines and small gas turbines operating on non-renewable fuel, utilizing waste heat recovery and meeting the reliability criteria

$1,000 per kW 30% Up to 1,500 kW

New Jersey’s CHP Incentive Program

Requires 5 year service warranty and/or 5 year service contractFunding of $4 million per year available Summer ‘04

Eligible TechnologyIncentive

Limit: 1,000 kWMaximum % of

Project Cost

Level 1: Fuel cells on non-renewable fuel

$2,500 per kW 40%

Level 2: Microturbines, IC Engines, Gas Turbines

$1,000 per kW 30% or

40% w/ Cooling

Level 3: Heat or mechanical recovery from existing equipment using new electric generation

$500 per kW 30%

NYSERDA’s DG-CHP Demonstration Program Installations (kW)

 

Technology No. of Projects Total Capacity Typical Size

Engines 60 80,214 500-750

Gas Turbines 1 15,500 N/A

Microturbines 22 3,428 60-75

Steam Turbines 5 4,398 300-500

Fuel Cells 8 5,450 200-250

Totals 96 108,990 1,000

NYSERDA Funding = $46 million Total Funding = $220 Million

SUNY Buffalo/Grester Trane• Two 60 kW Capstones

• Peak Reduction: 300 kW

• Application: Swimming Pool

– Power to water pumps

– Heat to electric water heaters

• NYSERDA: $310000; SUNY & G.Trane: $310,000

• Status: Fully Operational

• Measured in 2003: Savings = $35,000 per year Annual Fuel Use Effic. ~ 50%

Waldbaums Supermarket

• Utilize one Capstone 60 kW Microturbine.

• Integrated with Munters DryCool Desiccant.

• Good opportunity for technology transfer.

• Lessons in Interconnection.

• Status: Fully Operational.

Bulova @ LaGuardia Airport

• Building has been converted from the headquarters of Bulova Watch Co. to a state of the art office building.

• Utilizing (2) 350-ton gas engine driven chillers.

• Peak Demand Reduction of 526 kW

• Excellent thermal efficiency.

Greater Rochester International Airport

• Two 750 kW Natural gas Recip. Engines

• Heat recovered for space and DHW heating and a 300 ton absorber

• NYSERDA: $500,000; GRIA $2,000,000

• Status: Fully Operational.

Oakwood Healthcare Center

• Islanded application – Three Recip engines (2 NG, 1 Diesel), 850 kW

• Heat recovery: space heating and DHW

• Integrated with load management strategies (Ex: thermal storage)

• NYSERDA: $425,000 Oakwood: $563,000

• Status: Fully Operational.

Fuel Cells at WWTP in NYC

• Eight UTC PAFC Fuel Cells at Four Municipal Waste Water Treatment Facilities in New York City (NYCDEP)

• Heat Recovered to Support Anearobic Digester

• Reduced On-site Emissions by Eliminating Flare

• NYSERDA: $1,000,000; NYPA: $12,000,000

• All 8 Fully Operational.

Fuel Cell at Sheraton Hotel in NYC

• 250 kW molten carbonate fuel cell

• Hoisted into place (rooftop setback) November 2004

• Heat recovery for DHW

NYSERDA’s Fuel Cell Demonstrations

 

Type Application Capacity NYSERDA $ Comments

PAFC Municipal WWT 1.6 MW $1,000,000 8 fuel cells @ 4 Sites

PAFC Bronx Zoo 200 kW $584,030 WCS

PAFC Verizon - TeleCom. 1.4 MW $425,000 7 fuel cells + Engines

MOFC Sheraton Hotel 250 kW $920,000 PPL

MOFC Syracuse Univ-ESF 250 kW $1,000,000 EO111

PAFC Grand Central Stn. 200 kW $311,362 NYPA

PEM Albany NanoTech 150 kW $614,250 UTC- Terminated

PAFC East Rochester K-12 200 kW $833,430 Terminated

SOFC Verizon – Rome 250 kW $1,000,000 Terminated

PAFC Multi-family 200 kW $600,000 Terminated

DG-CHP Challenges• Regional CHP Activity - Lack of similar CHP (/DG)

interest among various states• Standby Rates - NYS PSC developed standby tariffs with

CHP exemptions and phase-ins, other states like MA are in the process of developing tariffs

• Emissions Standard - NYS DEC is in the process of developing air emissions standards. Others ?

• Interconnection – NYS has just updated its SIR to 2 MW and to networks

• Utility Buy-In - Grid support, congestion mitigation, alternative to grid expansion/upgrade, utility ownership or access to excess capacity

New York’s CHP Program Summary

• Supporting 96 demo projects, 50+ feasibility/Tech Trans. studies

– NYSERDA demo funding of $46 million (in ~$220 M)

– 27 Projects with a total installed capacity of 12 MW in operation

– Expect to reach 20 MW of capacity the end of 2004 (peak demand

reduction of 26 MW)

– Additional capacities of 40 MW and 48 MW in ’05 and ’06,

respectively

• CHP applications in industrial, agricultural, municipal,

institutional, commercial, and residential sectors

• Field-Performance: Monitoring and Data Collection is Underway