webinar series - southeast energy efficiency...
TRANSCRIPT
1Southeast Energy Efficiency Alliance | www.seealliance.org
WEBINAR SERIES
Pre-Conference Webinar: Combined Heat and Power in the SoutheastOctober 13th, 2016
2Southeast Energy Efficiency Alliance | www.seealliance.org
Regional Energy Efficiency Organization
Eleven-state footprint
Non-profit, non-partisan
The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities.
Regional Energy Efficiency Organization
Eleven-state footprint
Non-profit, non-partisan
The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities.
SEEA Serves the Southeast
3Southeast Energy Efficiency Alliance | www.seealliance.org
The SEEA & AESP SE Conference
4Southeast Energy Efficiency Alliance | www.seealliance.org
Upcoming Webinars
Missed one? Find webinar materials at www.seealliance.org
November 10th, 2016
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GoTo Webinar Instructions
6Southeast Energy Efficiency Alliance | www.seealliance.org
Speakers
Meegan KellyACEEE
Anne HampsonICF
October 13,
2016
Anne Hampson
Senior Manager
ICF
Combined Heat and Power in the Southeast
A pre-conference webinar
Over Two-Thirds of the Fuel Used to Generate Electrical Power in the U.S. Is Lost as Heat
SEEA Webinar - CHP in the
Southeast 8
What is Combined Heat and Power?
CHP is an integrated energy
system that:
Generates electrical and/or mechanical
power
Recovers waste heat for:
–Space heating
–Water heating
–Space cooling
–Dehumidification
Is located at or near a factory or building
that can use the energy output
Can utilize a variety of technologies and
fuels
CHP is also known as cogeneration
9
SEEA Webinar - CHP in the
Southeast
Defining Combined Heat & Power (CHP)
10
The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy
source
Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)
CHP Energy Efficiency (combined heat and power)
70% to 85%
Separate Energy Delivery:
• Electric generation – 33%
• Thermal generation - 80%
• Combined efficiency – 45% to 55%
SEEA Webinar - CHP in the
Southeast
Defining Combined Heat & Power (CHP)
11
The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy
source
Waste heat from the
industrial process
Fuel
Electricity
Energy
Intensive
Industrial
Process
Heat
Heat recovery
steam boiler
Steam
Turbine
Fuel first applied to produce useful
thermal energy for the process
Waste heat is utilized to produce
electricity and possibly additional
thermal energy for the process
Simultaneous generation of heat and
electricity
No additional fossil fuel combustion
(no incremental emissions)
Normally produces larger amounts
electric generation (often exports
electricity to the grid; base load
electric power)
Waste Heat to Power CHP(also referred to as Bottoming Cycle CHP or Indirect Fired CHP)
HRSG/Steam Turbine
Organic Rankine Cycle
Backpressure Turbine
SEEA Webinar - CHP in the
Southeast
12
Industrial Institutional
Residential Utility Scale
CHP in the U.S. Represents a Variety of Fuels, Technologies, Sizes, and Applications
Commercial
SEEA Webinar - CHP in the
Southeast
CHP Today in the U.S.
SEEA Webinar - CHP in the
Southeast 13
81 GW of installed CHP at over
4,300 industrial and commercial
facilities
8% of U.S. Electric Generating
Capacity; 14% of Manufacturing
Avoids more than 1.8 quadrillion
Btus of fuel consumption annually
Avoids 241 million metric tons of
CO2 compared to separate
production
DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015)
What Are the Benefits of CHP?
CHP is more efficient than separate generation of electricity and
thermal energy
Higher efficiency translates to lower operating costs
Higher efficiency reduces emissions of all pollutants, including CO2,
NOX, and SO2
CHP can increase power reliability and enhance power quality
On-site electric generation can help reduce grid congestion
SEEA Webinar - CHP in the
Southeast 14
CHP Is a Clean, Efficient Method of Providing Energy Services
SEEA Webinar - CHP in the
Southeast 15
Source: EPA CHP Partnership
CHP’s Increased Efficiency General Results in Lower Emissions
SEEA Webinar - CHP in the
Southeast 16
Source: EPA CHP Partnership
CHP Is Used at the Point of Demand
SEEA Webinar - CHP in the
Southeast 17
DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015)
CHP Installations Less than 100 MW Represent an Increasing Share of New Capacity
SEEA Webinar - CHP in the
Southeast 18
CHP’s Higher Efficiency Results in Energy and Emissions Savings
Category 10 MW CHP 10 MW PV 10 MW Wind10 MW
NGCC
Annual Capacity Factor 85% 22% 34% 70%
Annual Electricity 74,446 MWh 19,272 MWh 29,784 MWh 61,320 MWh
Annual Useful Heat
Provided103,417 MWht None None None
Footprint Required 6,000 sq ft 1,740,000 sq ft 76,000 sq ft N/A
Capital Cost $20 million $60.5 million $24.4 million $10 million
Annual Energy Savings,
MMBtu308,100 196,462 303,623 154,649
Annual CO2 Savings,
Tons42,751 17,887 27,644 28,172
Annual NOx Savings 59.9 16.2 24.9 39.3
SEEA Webinar - CHP in the
Southeast 19
Source: Combined Heat and Power: A Clean Energy Solution, August 2012, DOE and EPA
Drivers for CHP Growth
Benefits of CHP recognized by Federal and State policymakers
White House Executive Order: 40 GW by 2020
Increasing state interest (Ohio, Maryland, New Jersey, etc.)
Game changing outlook for natural gas supply and price in North America
Resulting growth in the industrial sector
Opportunities created by environmental drivers
Clean Power Plan
Pressures on utility coal and oil capacity
CHP offers resiliency options when faced with man-made and natural
disasters
SEEA Webinar - CHP in the
Southeast 20
Federal Support for CHP
Executive Order: “Coordinate and strongly encourage efforts to achieve a national goal of deploying 40 gigawatts of new, cost-effective industrial CHP in the United States by the end of 2020.”
DOE focuses technology deployment support for CHP—TAPs and SEEAction—Regional meetings in support of Executive Order
EPA recognizes CHP as an efficiency measure under developing greenhouse gas emission standards and
promoting output-based options that recognize CHP
benefits (ICI Boiler MACT and Utility MACT (MATS), and Clean Power Plan)
FERC pressing to open ancillary services markets to DG and CHP
SEEA Webinar - CHP in the
Southeast 21
CHP Provides Energy Reliability and Resiliency Benefits
Traditional backup generators do not
always perform during emergencies
A system operating on a daily basis (CHP) is more
reliable
CHP provides continuous benefits to hos
facilities, rather than just during
emergencies
CHP systems that kept running during
Sandy:
South Oaks Hospital – Amityville, NY, 1.25 MW
The College of New Jersey – Ewing, NJ, 5.2 MW
Public Interest Data Center – New York, NY, 65 kW
Bergen County Wastewater Plant – Little Ferry, NJ
New York University – New York, NY
Sikorsky Aircraft Corporation – Stratford, CT
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SEEA Webinar - CHP in the
Southeast
Critical Infrastructure Facilities That Benefit from CHP
Healthcare Hospitals, nursing homes
Wastewater Treatment Plants
Facilities of Refuge College campuses, schools, community
centers
Hotels with kitchens, laundries
Food distribution, including cold
storage and supermarkets
Communications/Data Centers
Public Safety Jails/prisons, fire/EMS
Transportation Centers (Airports)
23
SEEA Webinar - CHP in the
Southeast
The Potential for Additional CHP is Nationwide
24
<1,000 MW
1,000-3,000 MW
3,000-5,000 MW
>5,000 MWSource: U.S. Dept. of Energy, “Combined Heat and Power in the United States”, prepared by ICF International, March 2016.
SEEA Webinar - CHP in the
Southeast
Where is the Remaining Potential for CHP?
25
Source: U.S. Dept. of Energy, “Combined Heat and Power in the United States”, prepared by ICF International, March 2016.
SEEA Webinar - CHP in the
Southeast
CHP Technical Potential - Southeast
SEEA Webinar - CHP in the
Southeast 26
Technical Potential by
State (MW)
Technical Potential by Application
(MW)
Combined Heat and Power in the Southeast
A pre-conference webinar
Meegan Kelly
Senior Research Analyst, Industry Program
ACEEE
October 13, 2016
The American Council for an Energy-Efficient Economy (ACEEE)
• ACEEE is a 501(c)(3) nonprofit that acts as a catalyst
to advance energy efficiency policies, programs,
technologies, investments, & behaviors
• 50 staff; headquarters in Washington, D.C.
• Focus on end-use efficiency in industry, buildings, &
transportation
• Other research in economic analysis; behavior;
energy efficiency programs; & national, state, & local
policy
• Funding:
◦ Foundation Grants (52%)
◦ Contract Work & Gov’t. Grants (20%)
◦ Conferences & Publications (20%)
◦ Contributions & Other (8%)
www.aceee.org/@ACEEEdc29
Overview
• CHP in the 2016 State Energy Efficiency Scorecard
• Policies from highest ranking states
• Snap shot of CHP policy in the Southeast
• Opportunities to advance CHP in the Southeast region
• Utility-ownership model
• Trends in the Southeast
31Source: Berg, et al 2016: http://aceee.org/research-report/u1606
1. Utility programs and policies
2. Transportation policies
3. Building energy codes
4. Combined heat and power
5. State government-led initiatives
6. Appliance and equipment efficiency
standards
2016 State Energy Efficiency Scorecard
CHP Scorecard Methodology
Metric Points
Interconnection standards 0.5 pts
Encouraging CHP as a resource 2.0 pts
–EERS treatment (0.5 pts)
–CHP resource acquisition programs (0.5 pts)
–Production goal (0.5 pts)
–Revenue streams (0.5 pts)
Deployment incentives 0.5 pts
Other supportive policies 1.0 pt
Total 4 pts
Highest ranking states on CHP
33
• CA, MD, MA earned full 4 points
• All allow CHP within EERS, offer deployment incentives, and have
supportive policies
Encouraging CHP as a resource
State
Interconne
ction (0.5)
EERS
treatment
(0.5)
CHP
Programs
(0.5)
Production
Goal (0.5)
Revenue
streams
(0.5)
Deployment
Incentives
(0.5)
Supportive
Policies
(1) Score (4)
California 0.5 0.5 0.5 0.5 0.5 0.5 1 4
Maryland 0.5 0.5 0.5 0.5 0.5 0.5 1 4
Massachusetts 0.5 0.5 0.5 0.5 0.5 0.5 1 4
New York 0.5 0.5 0.5 0.5 0 0.5 1 3.5
Rhode Island 0.5 0.5 0.5 0 0.5 0.5 1 3.5
Maine 0.5 0.5 0 0.5 0 0.5 1 3
Connecticut 0.5 0.5 0 0 0 0.5 1 2.5
Minnesota 0.5 0.5 0 0 0 0.5 1 2.5
Oregon 0.5 0.5 0 0 0 0.5 1 2.5
Pennsylvania 0 0.5 0 0 0.5 0.5 1 2.5
Washington 0.5 0.5 0 0 0 0.5 1 2.5
Source: Berg, et al 2016: http://aceee.org/research-report/u1606
Southeast state scores for CHP
34
• FL, NC, and TN earn high scores in region
• Most states have supportive policies
• CHP is not currently prioritized as an energy resource in Southeast
Encouraging CHP as a resource
State
Interconnec
tion (0.5)
EERS
treatment
(0.5)
CHP
Programs
(0.5)
Production
Goal (0.5)
Revenue
streams
(0.5)
Deployment
Incentives
(0.5)
Supportive
Policies
(1) Score (4)
Florida 0 0 0 0 0 0.5 0.5 1
North Carolina 0.5 0 0 0 0 0 0.5 1
Tennessee 0 0 0 0 0 0 1 1
Georgia 0 0 0 0 0 0 0.5 0.5
Kentucky 0 0 0 0 0 0 0.5 0.5
Louisiana 0 0 0 0 0 0 0.5 0.5
Mississippi 0 0 0 0 0 0 0.5 0.5
Alabama 0 0 0 0 0 0 0 0
Arkansas 0 0 0 0 0 0 0 0
South Carolina 0 0 0 0 0 0 0 0
Source: Berg, et al 2016: http://aceee.org/research-report/u1606
Recent CHP installations in Southeast
0
1
2
3
4
5
6
7
0
20
40
60
80
100
120
140
AL AR FL GA KY LA MS NC SC TN
NumberofInstallations
MWInstalledCapacity
Totalnewcapacityinstalledin2014and2015(MW)
TotalnumberofnewCHPinstallationsin2014and2015
Source: US DOE CHP Installation Database (as of December 31, 2015)
Recent CHP policy action in Southeast
North Carolina: Expiration of tax credit for CHP systems at the
end of 2015; NCUC ruling that only waste heat component of
topping cycle CHP meets definition of EE measure.
Mississippi: “Combined Heat and Power: Opportunities and
Barriers” study completed and findings released in 2016.
Tennessee: In 2015, TVA issued a request for proposals to
industrial customers to provide up to $7 Million for at least 5 MW
of customer-owned generation from CHP.
Learn about CHP policies in your state
ACEEE State and Local
Policy Database
http://database.aceee.or
g/
Opportunities to encourage CHP in states
• Define CHP as an eligible technology for meeting state EE or RE goals
• Develop complementary programs designed to acquire CHP resources
• *Engage utilities as dedicated partners*
Two ways to plan and deploy CHP to maximize system benefits
Customer-ownership Model• CHP installed by customers for
onsite benefits at their facilities
• State policy encourages utilities
to incentivize CHP systems for
energy savings and additional
benefits
• Customer invests in CHP with
financial support from utility
Utility-Ownership Model• CHP installed by utilities at
customer sites for overall
system benefits
• Investments are regulated
assets and included in utility
resources planning activities
• Utility invests in CHP and
customer takes useful thermal
energy
39
What are the benefits of utility-owned CHP?
• Cheaper than other supply alternatives
• Alleviates grid constraints
• Avoid investments in transmission and distribution
infrastructure
• Less risky investment overall
• More reliable and resilient power for customer
• Better service and value for customers
• Air quality improvements and carbon reductions
• Encourages economic development
40
Utility ownership trends in Florida
• Florida Public Utilities
built, owns, and operates a
20 MW CHP system at a
large customer site
providing:
• electricity to Amelia Island
residents
• steam to Rayonier pulp mill
• PSC Chair praises utility-
owned CHP business
modelSource: https://www.youtube.com/watch?v=K2LSkEMKn70&feature=youtu.be
Utility ownership trends in Carolinas
• Duke Energy added 40
MW of CHP to its 2015
Integrated Resource
Plans (IRP)
• Duke Energy, Duke
University partner to
propose 21 MW campus
CHP system
Utility ownership trends in Alabama
• Alabama Power already
owns 500 MW of CHP in its
service territory, primarily at
large industrial facilities
• PSC approval of utility
request for need to procure
500 MW of RE/CHP
Sources: NACAA 2015, http://www.4cleanair.org/sites/default/files/Documents/Chapter_2.pdf; SEE
Action 2013, https://www4.eere.energy.gov/seeaction/publication/guide-successful-implementation-
state-combined-heat-and-power-policies.
Overview of Key Points
• States are pursuing CHP to achieve
system-wide benefits; SE has potential to
do more
• Examples show that well-designed policies
effectively encourage CHP
• More than one policy approach can
maximize the benefits of CHP
• Exploring utility ownership of CHP in the
Southeast is a path to achieve policy goals
and encourage smart deployment.44
Thank you!
Meegan Kelly
Senior Research Analyst, Industry
202-507-4008
46Southeast Energy Efficiency Alliance | www.seealliance.org
Questions?
47Southeast Energy Efficiency Alliance | www.seealliance.org