Northeast Clean Energy Application Center & Pace Energy and Climate Center District Energy with CHP: “Big Projects / Big Results” Tom Bourgeois, Deputy Director Pace Energy & Climate Center

Fostering CHP in the Northeast

 From 2003 to 2011, the NE-CEAC has provided CHP/DE/WHR stakeholders: ◦ Integrated analytic support on issues ranging from technical assessments to program design ◦ A critical and trusted source of information ◦ Highly-valued convening role for utilities, regulators, policy-makers and end users

Technical Assessments 2003-2011 • 24 facilities totaling 33.91 MW either installed or in the process of installing CHP based on assistance from NECEAC • The NE-CEAC has performed 110 Assessments across all of the Northeast States • 55 recommendations to proceed with CHP installation • 85.53 MW proposed CHP

Capacity Additions  Good News / Bad News  Good news is that there with an aging fleet of generation, in some cases with low efficiencies and high emissions profiles, the pace of retirements will quicken  Bad News… are we part of the policy dialogue in an meaningful way?

Visibility: the case of Indian Point  The Indian Point Study conducted by Charles River Associates does not contain the terms “District Energy”, “CHP”, “COGEN”  The NY ISO studies are not likely to showcase CHP and District Energy  The environmentalists study of Indian Pt. (Synapse) mentions CHP once on pg 4 and in footnote 12

Conclusion: A lot of work to be done How can we heighten the visibility of district energy / CHP as an effective, near term, strategy for meeting energy, economic development and environmental objectives

What are the Tools that would facilitate greater project development (e.g. Thermal Mapping? CHP/DG Zones? District Energy/CHP in State Energy, Climate Action and Development Plans ) How do we most effectively move policies that support District Energy encouraging greater market development and participation in key policy decisions?

New York State/New York City 1. Support for achieving the PlaNYC Goal of 800 MW’s of incremental CHP in New York City 2. Foster utility, industry interest in CHP/DES alternative to T&D capital investment 3. 1-2 District heating Assessments 4. CHP/DES role in Indian Point analyses

Focusing on Results  Close collaboration with key market participants: ◦

New York City Mayor’s Office & NYC DEP Energy office on workshops to promote the 800 MW CHP goal in NY, meeting scheduled early March

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Con Edison technical workshop on CHP in NYC, expected Spring 2012

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Non Wires Alternatives Principles and potential Pilot with National Grid, Ongoing

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A “Solutions Summit” in CT aimed at facilitating large scale, multi-building CHP…, TBD

NY Activities of Interest to DES PlaNYC Working in close collaboration with NYC’s Mayor’s Office of Long Term Planning to meet the 800 MW target

EcoDvlpmt DES/CHP Role in Brownfields remediation

Integrating CHP into the City’s directive to phase out #6 oil combustion by 2015

Power Parks, revitalization, updating NY’s existing Industrial Parks

New York City Energy Efficiency Corp Corporation to insure that CHP/DES is a qualifying technology

Developing solutions to overcome hurdles to multibuilding CHP projects in NYC

NWA National Grid has invited NECEAC to consult on developing an NWA pilot

Innovative programs with Con Edison, GE Power, Endurant & others to find high value sites for CHP that maximize societal benefits

Technical Assistance Work with key stakeholders to identify and conduct TA studies of high-value CHP sites

Milestones - NY  Launch new initiative with NYC Mayor’s Office to re-invigorate the 800 MW CHP target and find suitable TA candidates  Collaborate with Con Ed and key industry participants to explore high value zones in NY and find and suitable TA candidates  Promote District Energy’s role in the event of closure of Indian Point

Connecticut 1. Commissioner Esty’s favorable statements on multi-building CHP / microgrids 2. Bring key parties to the table to find solutions 3. Raise awareness of CHP’s societal benefits for critical infrastructure in response to the 2 Storms Report. 4. Conduct a District heating TA Assessment

5. Align policies to recognize DES benefits

Milestones - CT  Encourage a decisionmakers Summit leading to a more conducive environment for larger scale District Energy with CHP  Follow-up on the interest generated from the “Two-Storms” Panel report  Complete at least one TA assessment  Highlight regulations that discourage CHP in multi-building situations

Massachusetts 1. Multi-State and multi-agency efforts to create innovative funding mechanisms for CHP/DES 2. Places of refuge and critical infrastructure (ride-through without interruption) 3. Islanding after brief interruption at less critical sites (residential/business) 4. Encourage DES in new/renovated sites

5. 1 District heating TA Assessment

Action Plan for Big Projects Market Environment Work with key decision-makers, utilities and industry participants to address legal, regulatory financial

Tools and Templates

Reliability

Work with municipalities, key end user associations on best practices

Promote awareness of CHP benefits with respect to critical infrastructure

Create model documents, tools and templates to lower transaction costs

Leverage interest in DG/CHP spurred by recent statewide outages

Identify high value sites , work on campus style tariffs, other advantageous regulatio

Analytical Support for District Energy and Microgrids w/CHP

Technical Assistance Conduct TA assessments for selected facilities/ demonstrate benefits of Multi-Building CHP

Education & Outreach Innovative Financing

Economic Development

State & municipal

New Public - Private Partnerships, and Engaging existing agencies/authorities

Attracting businesses requiring high degree of power quality & reliability

Cost effectivness of “Big Projects”, neighboorhood scale

Meetings with state and regional authorities: economic development, health, education, etc.

Explore correlation between power quality/reliability and high wage/value added

Alignment with climate, economic development, reliability goals

Technical Assistance Conduct TA assessments for selected facilities. Support implementation efforts by MA DOER to increase implementation of CHP for RAC clients with completed TA assessments.

DES and Renewables: Raising Awareness

 District Energy Systems are a platform for more efficiently integrating renewables  Consider “Zero Energy Neighborhoods”, in addition to zero energy buildings  Living City Block, Common Ground, NYCEEC, others have engaged with Pace on new blueprints for deep neighborhood efficiency  Imperative of valuing THERMAL energy, renewable and “Zero carbon heat” via CHP

Brownfields/Industrial Parks  Capitol Hill & EPA Briefing /Work with Northeast-Midwest Inst.  “Why District Energy Systems & CHP at Remediated Sites” ◦ Lower business costs, improve productivity ◦ Better power quality and higher level of reliability ◦ Low cost means of meeting GHG and emissions targets ◦ Much smaller footprint / higher power density

CHP Value Proposition Category

10 MW CHP

10 MW PV

10 MW Wind

85%

25%

34%

Annual Electricity

74,446 MWh

21,900 MWh

29,784 MWh

Annual Useful Heat

103,417 MWht

None

None

Footprint Required

6,000 sq ft

1,740,000 sq ft

76,000 sq ft

Capital Cost

$20 million

$60.5 million

$24.4 million

Cost of Power

7.6 ¢/kWh

23.5 ¢/kWh

7.5 ¢/kWh

316,218 MMBtu

225,640 MMBtu

306,871 MMBtu

Annual CO2 Savings

42,506 Tons

20,254 Tons

27,546 Tons

Annual NOx Savings

87.8 Tons

26.8 Tons

36.4 Tons

Annual Capacity Factor

Annual Energy Savings

Based on:

10 MW Gas Turbine CHP - 28% electric efficiency, 68% total efficiency, 15 PPM NOX Electricity displaces National All Fossil Average Generation (eGRID 2010 ) - 9,720 Btu/kWh, 1,745 lbs CO2/MWh, 2.3078 lbs NOX/MWH, 6% T&D losses Thermal displaces 80% efficient on-site natural gas boiler with 0.1 lb/MMBtu NOX emissions

Prepared by ICF Inc. for EPA CHP Partnership

CHP as a “Non-Wires Alternative”  CHP operating in the right locations can:

◦ Defer or eliminate costly distribution capital upgrades ◦ Avoid disruption to business and neighborhoods from digging up local streets ◦ Reduce operating costs, improve system utilization, lower rates

Grid Benefits of CHP Grid demand

Princeton Demand

CHP as a Clean Energy Investment  CHP represents a proven, economical, effective strategy for meeting environmental performance objectives: ◦ For institutions that have signed the American College & University Presidents' Climate Commitment ◦ For commercial, institutional business and municipalities with sustainability plans

Cornell University CO2 Emissions since 1980

University of Texas - Austin

Campus Growth vs. Gas Consumption

Carbon Neutral On Campus Growth

Indian Point Replacement  Indian Point has a generation capacity of 2,100 MW  NYSERDA has estimated roughly 4,500 MW of CHP technical potential in the downstate region  HOW do we insure District Energy / CHP is in the dialogue as an important resource?

NYSERDA. (2002) Combined Heat and Power Market Potential for New York State. Retrieved from: http://www.nyserda.ny.gov.

Indian Point Replacement New York City Identified measures including:  streamline permitting for CHP projects;  expand utilization of high efficiency CHP technology;

 co-locating anaerobic digesters and PV at wastewater treatment facilities;  participation in a 350 megawatt off-shore wind collaborative NYSERDA. (2002) Combined Heat and Power Market Potential for New York State. Retrieved from: http://www.nyserda.ny.gov.

Capacity Replacements  

Demonstrate efficacy in meeting system needs; Operating reserves – differentiated by speed of response and duration

◦

Spinning reserves

◦ Non spinning reserves  Meeting system power frequency requirements, providing regulation services (up / down generation )  Voltage Support Services : Maintain system voltages within specific tolerance levels  produce or absorb reactive power to maintain system voltage NYSERDA. (2002) Combined Heat and Power Market Potential for New York State. Retrieved from: http://www.nyserda.ny.gov.

Your thoughts on how we can be most effective? What are the critical Regulatory, Legal, Financial improvements necessary to develop a better market environment for District Energy with CHP? What are the Tools that would facilitate greater project development (e.g. Thermal Mapping? CHP/DG Zones?) How do we most effectively move policies that support District Energy and take a more prominent place in policy discussions?

Northeast Clean Energy Application Center & Pace Energy and Climate Center Tom Bourgeois, Deputy Director Pace Energy & Climate Center

[email protected] 78 N. Broadway White Plains, NY 10603 www.law.pace.edu/energy