new jersey’s clean energy program chp & fuel cell incentives fy14/njcep chp over… ·...
TRANSCRIPT
CHP Basic Components
Prime Mover
Exchanger
Heat
ThermallyActivated
TechnologiesBoilersAbsorption ChillersEtc.
GeneratorNatural Gas
PropaneDigester Gas
Landfill GasBio Fuel
SteamDiesel
Common FuelsQin (Fuel Input)
Qout (Exhaust Gas)
Wout
Electricity
Qout
Qout
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Thermally Activated Technologies(uses for heating component of CHP)
Single-Effect Hot WaterAbsorption Cooling150 F to 270 FCOP 0.5 to 0.7
Double-Effect Steam Absorption CoolingHigh and Medium pressure steamCOP 1.1 to 1.7
Heat Recovery Steam Generator
Back Pressure Steam Turbine
Shell & Tube Heat Exchanger
Plate & Frame Heat Exchanger
Cooling Technologies
Heating Technologies
Exhaust Gas Heat Recovery Boiler
Power Generation
Technologies
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• Environmental - Well sited and sized systems reduce CO2, SO2 and NOx
• Economic – High efficiency translates into compelling cost savings (average 75% overall CHP efficiency compared to 32% grid electric efficiency and 80% boiler efficiency)
• Resiliency - CHP can also run during a grid outage to provide power to your priority loads
Benefits of CHP
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Your facility is a good candidate for CHP if…
• Your facility operates for more than 5,000 hours/year
• You have “coincident” electricity and thermal needs throughout the year (including steam, hot water, chilled water, hot air, etc.)
• You have significant annual energy consumption for both electricity and heat (e.g. Electric Utility bill of $5,000 or more per month)
• Your facility has thermal distribution piping:
– Must have: building heating via centralized hot water distribution pipes
– Helpful: building cooling via centralized chilled water distribution pipes
• Your facility has access to natural gas
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NJCEP CHP Program Goals
• Increasing energy efficiency and renewable energy to reduce energy cost and consumption for consumers, businesses and government;
• Reducing load on the grid;• Improving the reliability of electricity and fuel supply,
and the delivery of energy services;• Reducing the impacts of energy production and use on
the environment;
• Developing 1,500 MW of CHP generation by 2021.
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Incentive Structure
• 30% paid at proof of purchase• 60% paid at installation• 10% paid performance verification
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Footnotes
(1) Incentives for CHP systems greater than 1 MW are tiered. For example, a 4 MW CHP system would receive $0.55/watt for the first 3 MW and $0.35/watt for the last 1 MW. No other incentives are tiered.
(2) In the past, utilities have offered incentives towards CHP and Fuel Cell technologies ranging from $0 to $1,000,000. Although no utility incentives are currently available, should they become available at a later time NJCEP incentives will subsidize utility incentives to bring the combined incentive up to the $/Watt amount shown in the table above, up to the maximum caps listed, to ensure a consistent incentive is paid throughout New Jersey.
(3) Any facility successfully participating in Pay for Performance prior to applying for CHP or Fuel Cell incentives will be eligible for an additional $0.25 per Watt from NJCEP, not to exceed $250,000. This amount is in addition to the “$ cap per project” listed above. The “% of project cost” caps listed above will be maintained.
(4) The maximum incentive will be limited to 30% of total project. This cap will be increased to 40% where a cooling application is used or included with the CHP system (e.g. absorption chiller).
(5) Projects installing CHP, fuel cell, and heat recovery generation will be eligible for incentives shown above, not to exceed the lesser of % per project cap or $ per project cap of the CHP/FC.
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Sample Calculation
600 kW Nat Gas Engine w/heat recovery and absorption cooling• Total Installed Cost = $1,200,000• Requested Incentive - 600,000 x $1.00/Watt =
$600,000• Incentive Cap - $1,200,000 x .40 = $480,000• Final Incentive - $480,000
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Sample Calculation
• 4 MW Nat Gas Engine w/heat recovery for HH & DHW
• Total Installed Cost = $5,000,000• Requested Incentive
– First 3,000,000 x $0.55/Watt = $1,650,000– Second 1,000,000 x $0.35/Watt = $350,000
Final Incentive = $2,000,000• Incentive Cap - $5,000,000 x .30 = $1,500,000• Final Incentive - $1,500,000
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Program Process
• Complete and submit CHP/FC Application (Excel-based) per instructions– Accepted on a rolling basis
• TRC (Market Manager) and/or BPU reviews submittal and issues a CHP/FC Incentive commitment– Pre-inspection completed
• Install and commission project within 18 months of CHP/FC approval– Post-inspection completed; invoices reviewed
• Measure performance over 12 month period – Must hit minimum efficiency thresholds; must generate within 20% of
kWh per approved application.
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Equipment Requirements
Equipment Must Be:• Applicant must pay into Societal Benefits Charge on electric or gas
bill (customer of investor owned utilities)• New, commercially available, and permanently installed
(incremental expansions of existing systems also qualify)• Installed on the customer side of the meter• Meet minimum 65% LHV annual system efficiency (50% for electric
only Fuel Cells)• Must operate minimum of 5,000 annual full load equivalent hours
(3,500 for eligible critical facilities)• Electric only fuel cells must be sized for ≤100% historical
consumption/peak demand• 10 year all-inclusive warranty or service contract
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See CHP /FC Application for full information on eligibility and technical requirements
Equipment Requirements
The Following are Not Eligible:• 100% biogas CHP (must apply through Renewable CHP
program)• Prior installations• Portable systems• Emergency only, backup power systems • Used, refurbished, temporary, pilot, or demonstration
equipment• Systems that use diesel fuel, other types of oil or coal for
continuous operation
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Other Evaluation Criteria
• Environmental performance• Projected system startup date• Annual system utilization• Alignment with general program goals• Project clarity• Operation as an emergency management
center or critical facility
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280 acre college campus Combined Heat and Power (CHP)
• 1,100 kW internal combustion engine with heat recovery • 80-ton absorption chiller• Capable of operating off grid
Project Cost: $4,594,188 (estimated) Incentives: $1,000,000 Annual Savings: 8,545,053 kWh generation; 21,029 MMBtu recovered
waste heat to provide 47% of campus electric load, 76% heating and hot water load, and 23% cooling load
Annual Cost Savings: $527,973 Payback Period: 6.8 Years (including incentive) Manufacturing and construction anticipated to generate 25 temporary full-
time jobs
Rider University
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433 acre campus with over one million squarefeet of labs, offices, and computing facilities
Combined Heat and Power (CHP)• 4,100 kW installed capacity
Project Cost: $9,307,350 Incentives: $1,980,960 Annual Savings: 33,300 MWh annual generation; 148,285 MMBtu
recovered waste heat Annual Cost Savings: $2,457,000 Payback Period: 3 Years (including incentive)
Bristol Myers Squibb
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Restaurant by the Jersey Shore Micro CHP
• 20 kW system • Capable of operating off grid
Project Cost: $189,600 (actual) Incentives: $40,000 Annual Savings: 174,240 kWh generation; 892 MMBtu recovered waste
heat to provide heating and hot water load Annual Cost Savings: $20,588.00 Payback Period: 6.3 Years (including incentive)
Steve & Cookies
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Biopower Program
• Competitive solicitation – Current solicitation runs through December 22, 2014 5pm
• $3,000,000 incentive budget available• Applicants can request the minimum incentive necessary
to make project economically feasible– No greater than $900,000 per project or 30% of the project’s total
installed cost, whichever is less– $1,375,000 max per entity
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Biopower Program
Project Eligibility Requirements• Projects must generate electricity (and thermal energy, if a
CHP system is proposed) with sustainable Class I biomass resources as defined in N.J.A.C. 14:8-2.5.
• Projects designed to operate on any combination of sustainable biomass and any other feedstock not specifically designated as sustainable biomass in N.J.A.C. 14:8-2.5 are ineligible for this Solicitation but may be eligible for incentives under the NJCEP’s Commercial and Industrial CHP program (see previous slides).
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Biopower Program
Project Eligibility Requirements• A biomass sustainability determination from the New
Jersey Department of Environmental Protection (NJDEP) must be submitted with the application if required.
• A biomass sustainability determination is not required for certain projects as defined in N.J.A.C. 14:8-2.5(b).
• Please refer to the FY 2015 Biopower Solicitation dated October 23, 2014 for complete details regarding eligibility requirements using the link below. www.njcep.com/renewable-energy/technologies/biopower/biopower
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Questions
• Visit www.njcep.com/chp or www.njcep.com/renewable
• Call 866-NJSMARTFor the latest updates on programs and incentives,
subscribe to the NJ Clean Energy Program’s Energy Efficiency Committee, Renewable Energy Committee and CHP Workgroup at
NJCleanEnergy.com
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