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C&I Energy Savings Program Combined Heat & Power Conference Date: June 4, 2014
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C&I Energy Savings Program
Combined Heat & Power Conference
Date: June 4, 2014
2
Ellen Embry
Lockheed Martin
3
Exhibitors
Aegis Energy Services
Blue Sky Power
Burns & McDonnell
Capstone Turbine
CFSG Energy and Structured
Finance
EnGeneration
ENER-G Rudox Inc.
NRG Distributed Generation
OTG Energy Works, Inc.
RMF Engineering
Tecogen
UGI Performance Solutions
Western Branch Diesel
4
Agenda
Introductions
PHI Welcoming Remarks
Presentations
• Penn State – Mid Atlantic CHP Technical Assistance Partnership
• Maryland Energy Administration
• Pepco & Delmarva Power Energy Savings Program
• University of Maryland
Q&A
Lunch and visits with Exhibitors
Upper Chesapeake Medical Center
UMD/GDF Suez
Tour of CHP Plant
Networking/Exhibitors
Panel Discussion
5
William Ellis
Pepco Holdings Inc.
6
Welcoming Remarks
EmPower programs continues to grow and gain success
• Pepco paid $57,803,000 in incentives 2012 thru May 2014
• Delmarva paid $19,871,000 in incentive 2012 thru May 2014
Summer 2013 the CHP program was introduced
• Pepco and Delmarva’s have a combined CHP incentive budget of
$8.33 million
• Budget beyond 2015 isTBD
• CHP program timeline quickly approaches
Let us help you save money and energy!
7
Bill Valentine
Penn State – Mid Atlantic CHP Technical Assistance Partnership
COMBINED HEAT & POWER
Bill Valentine
DOE’s Mid-Atlantic CHP TAP
University of Maryland
June 4, 2014
Outline
Who we are
What is CHP ?
Why CHP ?
Mid Atlantic Region CHP
Case Studies
6/4/14 Slide 9
CHP Technical Assistance
Partnerships Key Activities
Market Opportunity Analysis. Supporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors
Education and Outreach. Providing information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.
Technical Assistance. Providing technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.
http://eere.energy.gov/manufacturing
/distributedenergy/chptaps.html
6/4/14 Slide 10
6/3/2014 Slide 11
What is CHP ?
6/4/14 Slide 12
What is CHP
Form of Distributed Generation (DG)
An integrated system
Located at or near a building / facility
Provides at least a portion of the electrical load and
Uses thermal energy for:
◦ Space Heating / Cooling
◦ Process Heating / Cooling
◦ Refrigeration/Dehumidification
CHP provides cost-effective, clean and reliable energy – today and for the future.
Source:
http://www1.eere.energy.gov/manufacturing/distributedenergy/chp_basics.html
6/4/14 Slide 13
CHP Diagram
6/4/14 Slide 14
CHP System Components
Fuel Supply
Duct Burner
Chilled Water
Supply/Return
Combustion
Turbine
Generator
Thermally
Activated
Chillers
Condensate Return
Steam Supply
Cooling
Towers
Heat Recovery
Steam Generator
Main
Stack Bypass
Stack
Steam Heat
Supply/Return
Combustion Turbine/Steam Turbine CHP System
Prime Mover
Heat Recovery
Thermal Technology
Accessory Devices
Switchgear
Interconnection
Fuel Supply
Controls/M&V
6/4/14 Slide 15
Prime Movers
• Gas Combustion Turbines > 1 MW
• Microturbines 35 kW – 1 MW
• IC Engines 30 kW – 6 MW
• Fuel Cells 250 kW
6/4/14 Slide 16
Thermally Activated Technologies
• Technologies:
– Hot Water HEX
– Boilers/Steam Generators
– Backpressure Turbines
– Absorbers
– Steam Turbines
– Desiccants
– Adsorbers
• Applications:
– Process Heat
– Space Heat
– Domestic Hot Water
– Cooling
– Freezing
– Dehumidification
– Power Generation
6/4/14 Slide 17
Why CHP ?
6/4/14 Slide 18
CHP Drivers
• Cost Savings
– Offset Utility/3rd Party kWh’s + Therms
– Reduce Utility Demand Charges - Demand Response
– Offset Capital Costs – Require Redundancy
– Improved Power Reliability/Quality
• Emissions Reductions
– In the same way that it saves fuel cost, CHP reduces pollution by using the fuel’s energy twice, yielding half to a third of the emissions from separate fossil fuelled grid power and boilers.
– Supported by US DOE & US EPA
6/4/14 Slide 19
CHP Drivers • Reliability
– Provides local grid support and improves power quality
– Can be configured to provide emergency power back-up
– Natural Gas grid can be more reliable for long term outages
• National Security
– Reduced fossil fuel usage extends US resources and reduces dependence on foreign energy imports
– Multiple points of power generation are less subject to catastrophic failure or attack
6/4/14 Slide 20
CHP Drivers Benefits of CHP recognized by
policymakers
◦ President Obama signed an Executive
Order to accelerate investments in
industrial EE and CHP on 8/30/12 that
sets national goal of 40 GW of new
CHP installation over the next decade
◦ State Portfolio Standards (RPS, EEPS,
Tax Incentives, Grants, standby rates,
etc.)
Favorable outlook for natural gas supply
and price in North America
Opportunities created by environmental
drivers
Energy resiliency and critical
infrastructure
DOE / EPA CHP Report (8/2012)
6/4/14 Slide 21
CHP Throughout the US
4,200 CHP Sites
82,400 MW Capacity (2012)
Source: ICF International
6/4/14 Slide 22
CHP Today
82.4 GW of installed CHP over 4,200 industrial and commercial facilities
87% of capacity in industrial applications
71% of capacity is natural gas fired
Avoids more than 1.8 quadrillion Btus of fuel consumption annually
Avoids 241 million metric tons of CO2 compared to separate production
6/4/14 Slide 23
Source: CHP Installation Database July 2013
CHP Additions 2012 (919 MW)
6/4/14 Slide 24
Commercial vs. Industrial
Industrial CHP 69%,
634 MW
Commercial CHP 30% ,
278 MW
Other CHP 1%
Commercial
By Application
(MW)
Wastewater Treatment,
78 MW
Colleges/ Universities,
58 MW
District Energy, 51 MW
Solid Waste , 22 MW
Hospitals, 17 MW
Utilities, 11 MW
Military, 10 MW
Retail, 9 MW
Hotels, 4 MW
Other, 18 MW
Mid Atlantic CHP
Incentives/ Installations
6/4/14 Slide 25
New Jersey Programs NJ BPU OCE CHP/Fuel Cell Grant Program
NJ BPU ‘REIP’ Grant Program for Biofueled CHP
No SUT (7% sales tax) on Natural Gas for CHP
Permits sales of electricity and thermal energy
among non‐affiliated entities for sale of electricity,
the CHP plant must supply thermal to customer
Air Permit-by-Rule adopted
Utility Standby Rates currently under review
NJ HUD Funded ‘Energy Resiliency Bank’
6/4/14 Slide 26
NJ BPU CHP/FC Grant Program
6/4/14 Slide 27
Footnotes:
Eligible Technology
Size
(Installed Rated
Capacity)
Incentive
($/Watt)(2)
P4P Bonus(3)
($/Watt)
(cap $250,000)
% of Total
Cost Cap
per project
$ Cap per
project
Combined Heat & Power
Powered by non-renewable fuel source
– Gas Internal Combustion Engine
– Gas Combustion Turbine
– Microturbine
≤500 kW $2.00
$0.25
30-40%(4)
$2 million
>500 kW – 1 MW $1.00
>1 MW – 3 MW(1)
$0.55 30% $3 million
>3 MW(1)
$0.35
Fuel Cells
Powered by non-renewable fuel source.
Incentives available for systems both with
and without waste heat recovery.
≤1 MW w. waste heat $4.00
60% $2 million ≤1 MW $3.00
>1 MW w. waste heat $2.00
45% $3 million
>1 MW $1.50
Heat Recovery(5)
Powered by non-renewable fuel source.
Heat recovery or other mechanical
recovery from existing equipment utilizing
new electric generation equipment (e.g.
steam turbine)
≤1 MW $1.00 30% $2 million
>1 MW $0.50 30% $3 million
http://www.njcleanenergy.com/commercial-industrial/programs/combined-heat-power/combined-heat-power-fuel-cells-incentives
Note: Footnotes 1- 5 on next slide
Pennsylvania PA Act129 – see individual utilities for details
◦ Mandates electric utilities reduce demand and throughput on their systems.
◦ PECO prescriptive CHP program
◦ CHP as custom measure for most other utilities
Commonwealth Financing Authority (CFA) ◦ The Alternative and Clean Energy Program (ACE) provides
grant and loan funds for the utilization, development and construction of alternative and clean energy projects in the state. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of the CFA.
6/4/14 Slide 28
Delaware
Delaware Department of Natural
Resources and Environmental Control
◦ CHP Pilot Program
◦ http://www.dnrec.delaware.gov/
◦ Reviewing proposals
6/4/14 Slide 29
Mid Atlantic CHP Installations
Maryland 713 MW
Virginia 1732 MW
West Virginia 381 MW
Delaware 172 MW
Pennsylvania 3303 MW
New Jersey 2931 MW
6/4/14 Slide 30
6/4/14 Slide 31
Visitor’s Center
6/4/14 Slide 32
50,000 sq. ft. facility
75 kW reciprocating engine
20 ton Absorption Chiller
Natural gas
Roof mounted unit
Building LEED certified
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Mike Leslie
Maryland Energy Administration
MEA CHP Initiatives
Michael Leslie, MSc. – CHP and C&I Program Manager
Agenda
Benefits of CHP - revisited
Where are we at?
How is the MEA positioned to help?
35
Benefits of CHP – revisited
EmPOWER Maryland
Lowering energy costs
Offsetting capital costs
Improve facility resiliency
36
Where are we at?
Installed CHP capacity
Technical potential
28 active projects providing approximately 55 MW’s
CHP 2012-2014 Budget and beyond
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How is the MEA positioned to help?
Collaboration
Lawton Loan Program
Maryland Clean Energy Center (MCEC) Financing
Program
MEA CHP Incentive Program
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Thank You!
Michael Leslie, MSc
CHP and C&I Program Manager
Maryland Energy Administration
o. (410) 260-7543
m. (410) 694-7475
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Bill Steigelmann
Lockheed Martin
What Pepco & Delmarva Power CHP Programs
Can Do For You
C&I Energy Savings Programs
Date: June 4, 2014
42
Reasons CHP is a Winner!
Opportunities
• More efficient production of electricity and heat
• Decreased facility operating costs
• Can provide power and heat during grid outages
• Reduced emissions and GHG Footprint
Considerations
• Sound levels
• Out of pocket expenses
• Location of CHP unit
43
CHP System Categories
“Custom” (>~2 MW) – Each system is unique; components
ordered individually and system assembled at the host facility
Example: 27-MW System at UMD
“Packaged” (<~2 MW) – Standardized designs, built and tested
at a factory and then shipped to the host facility
Examples on the next 7 slides
44
75-kW Packaged CHP Unit from AEGIS Energy
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100-kW Packaged CHP Unit from Tecogen
Weather tight, sound attenuated cabinet
46
250-kW Packaged CHP Unit from Elite Energy
Weather tight, sound attenuated cabinet
47
Six 65-kW Packaged CHP Units from Capstone
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Inside a 65-kW Microturbine CHP Unit
49
500-kW Packaged CHP Unit
50
Waldbaum’s Supermarket 60 kW CHP System
Waldbaum’s Supermarket (a subsidiary of A&P Foods) is located in
Hauppauge, New York
CHP Equipment: 1 60 kW Capstone MicroTurbine
Generating Capacity: 60 kW
Type of Fuel: Natural Gas
Heating issues
• Winter Heat Recovery Application: Space heating
• Summer Heat Recovery Application: Desiccant Drying
System Efficiency:
• (Peak efficiency > 60% on a winter day, based on Higher Heating
Value/HHV)
Annual Energy Savings: ~ $5,300 cost reduction
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Notre Dame Long Term Care & Assisted Living Centers
150 kW CHP System
Notre Dame Long Term Care & Assisted Living Centers is located
in Worcester, Massachusetts
Portfolio includes 2 separate buildings;123-bed long-term units
and an assisted living facility, which houses 200 people.
Two 75 kW Tecogen engines fueled by natural gas fuel
• Provides 75% of the electricity used on site
• The hot water output is enough to satisfy all of the facility’s domestic
hot water demand and much of the space
The project’s total cost was $250,000 and had a 3 year pay back!
* Pepco’s incentives would have approximately doubled the ROI!
52
Pepco and Delmarva Power CHP Program Rules
Incentives are available to any non-residential Pepco or
Delmarva customer who pays into the EmPOWER MD Fund
Any fuel (natural gas, propane, bio-gas, oil, etc.)
Any prime mover (gas turbines, steam turbines reciprocating
engines, fuel cells)
Any size (capacity rating)
At least 65% overall efficiency
All electricity generated must be used at host facility
5-year warranty
TRC > 1.0
“Reasonably efficient” host facility
Application must be submitted by 12/31/14
System must be operating by 12/31/16
53
PHI CHP Program Incentives
Up to $2 million per project
Design = $75/kW
Installation = $175/kW
Production $0.07/kWh (for 18 months)
Example: 500 kW system running 7,500 FL hours/year
• Design: $75*500 = $37,500
• Installation: $175*500 = $87,500
• Production: $0.07*1.5*7,500*500 = $393,750
• Total Incentive: $518,750 ($1,037.50/kW)
54
Paying For CHP System Installations
Customers can Purchase, Lease, or Buy Output (via PPA)
There first two options are familiar to everyone – here is some
information concerning the PPA option
Key parameters:
• Duration of the Agreement (e.g., 10, 15, 20 years)
• Does it apply to both electricity and heat, or just electricity
• Does it include or exclude fuel cost
• Is (are) the payment rate(s) fully variable ($/kWh), or is there also a
fixed payment ($/month)
• How is the variable component indexed
• Are all O&M costs over the Agreement duration covered
• What happens at the end of the Agreement duration
55
Questions and Discussion
Gene Smar • 1-202-872-2882
Bill Steigelmann • 1-301-519-5803
Pepco • www.pepco.com/business
• 1-866-353-5798
Delmarva Power • www.delmarva.com/business
• 1-866-353-5799
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Susan Corry
University of Maryland
Energy & Energy Efficiency
at UMD
Susan Corry
Energy Manager, UMD
June 4, 2014
Pepco & Delmarva Power CHP Conference
University of Maryland
Quick Facts from FY13
College Park Campus – 13,866,017 GSF
– 259 buildings
– 11% are >60 years old (built before 1950)
– 48% are 35-65 years old (built in 50’s, 60’s, 70’s)
– 37% are 5-35 years old (built in 80’s, 90’s, 2000’s)
– 4% are < 5 years old
Satellite Campuses & Extensions – 1,198,564 GSF
– 188 buildings
When in session - about 50,000 students, faculty, staff
FY13 Energy Spend
College Park, Satellite Campuses & Extensions
– $14.6M Fixed costs including bond repayments for
CHP, repayments for campus energy
efficiency projects such as performance
contracts
– $13.8M Natural gas
– $12.1M Electric
– $ 7.3M Water/sewer
– Total of $47.7M
Energy Initiatives
Earth Day 2014 Announcement
20% campus wide energy reduction by 2020
All purchased energy will be from renewable
sources by 2020
Carbon neutral new development
20% Campus Wide Reduction
Strategies – one size does not fit all
• Re-tuning
No/low cost measures
Tweaking of schedules, set points with BAS
• Retro or Re-commissioning
Ideal for buildings 5-10 years old
Equipment in good condition
• Performance Contracts
Major upgrades and renewal needed
Capital Intensive
Financing of Energy Initiatives
Internal Sources
Revenue from demand response program
External Sources
Maryland Energy Administration
Third Party Entities such as Maryland Clean
Energy Center (MCEC) and Maryland Economic
Development Corporation (MEDCO) with bond
issuing authority
Pepco Rebates
Pepco Rebates
Highest achieving non-federal government
customer
130 applications submitted to date since 2009
Pre-approved incentives of $3.3M
78 projects completed with annual savings of
over 10,000,000 kWhs
Electric Supply at UMCP
Electric needs on campus are met
through:
– On-site production from a combined
heat and power plant (CHP)
– Purchased energy delivered at the
Mowatt substation
– Renewable energy through Power
Purchase Agreements (PPAs)
Renewable PPA Contracts –
Project
Nameplate Capacity -(expected
annual MWh)
UMCP’s Share
% of Annual
Electricity Use
Technology Location On-line
Date
Roth Rock Phase II
10 MW – (30,605)
10% 1.53% Land-based wind
MD – Garrett County
8/11
Pinnacle Project
55 MW – (174,542)
10% 9% Land-based wind
WV - Mineral County
1/12
Constellation’s Mount St. Mary’s Solar Project
13MW – (22,291)
10% 1% Solar MD -Emmitsburg
6/12
WGES’ Severn Solar Installation
630kW (792)
100%
0.40% Solar Severn 6/11
Total 11.77%
Project Sunburst DOE American Recovery and Reinvestment
Act of 2009 funds allocated to Renewable
Energy in MD
UMCP was awarded a grant of $1000/kW of
installed solar capacity
Competitive solicitation awarded to WGES and
Standard Solar for a 630kW installation at
Severn
Commercial Operation June, 2011
2013 output of 792 MWh annually
Aerial View of Severn with
2,300 Solar Panels
Campus Electric Consumption
96,487 94,443 98,250 105,655 103,521 97,394
152,078 145,511
149,756 138,988 135,619 141,330
14,165 13,730
20,838 23,147 25,308 26,757
-
50,000
100,000
150,000
200,000
250,000
300,000
2008 2009 2010 2011 2012 2013
MW
h
Other Purchased Electric
Produced Electric
Campus Purchased Electric
UMCP Combined Heat and Power Plant
27.5 MW dual fuel plant
– DCA in 1998
– MOMA/LSA in 1999
– CHP online in 2002
– Energy Star award for 2005
– Primary fuel is natural gas
– Alternative fuel is #2 oil
– Meets 100% of campus thermal load
requirements
70
QUESTIONS
71
LUNCH
72
Donald Allik
Upper Chesapeake Medical Center
The Benefits of Cogeneration: A Case Study of Upper Chesapeake Medical Center
June 4, 2014
Agenda
74
• Overview of Upper Chesapeake Medical Center and Faculty
Challenges
• Factors Driving UCMC Toward CHP Solution Via PPA
• CHP System Solution at UCMC
• Considerations When Evaluating a CHP Installation
• Benefits of Turnkey Delivery of On-Site Power Systems
Overview of Upper Chesapeake
Medical Center and
Facility Challenges
75
Upper Chesapeake Medical Center
76
• Located in Bel Air, Maryland, part of University of Maryland
Medical System
• Contains a 200 bed state-of-the-art general medical, surgical
hospital and medical complex including:
Hospital
Two medical office buildings (MOB) Pavilion I and II
Parking garage
Klein Ambulatory Care Center of Harford County
Administrative offices
Cancer Center
• Serves the residents of Northeastern Maryland
University of Maryland Upper Chesapeake Medical Center
Campus Overview
Central Plant
CHP location
77
Hospital Facility Challenges
78
• Single point of failure in backup power system design
One existing 1.5MW diesel generator
• Minimal to no upfront capital available for system upgrades
Capital budgets favored other revenue generating investments
Previous CHP capital budget requests denied
• Need for additional cooling capacity and backup power
• Limited space to install new CHP system components
• Increase electrical/steam/cooling/hot water availability
during utility outages and emergencies
• Resources to oversee the design/construction/permitting and
operation and maintenance of the CHP system
Electrical Distribution Hurdles
• Electrical service to the campus is delivered to a service
station via a pair of 33KV feeders:
Fed to six (6) substations
Three (3) of the six (6) substations feed the “healthcare” uses
• Cancer Center is serviced by a separate feeder
• 1,500KW diesel generator insufficient to provide power to
greater than the critical care and a few other connected loads
79
Benefits of CHP • Reliability: Additional source of primary and emergency generation for
both electricity and heating/cooling
Proven technology with thousands of applications globally
Backup to diesel generators if prolonged outage or diesel failure
• Community Service: Allows hospital to serve as a safe haven to the
community during a disaster
• Cost Savings: Given efficiency and “spark spread,” can often generate
heat and power at a lower cost than traditional systems
• Stability: Less volatile lifecycle costs of energy vs. unpredictability of the
grid
• Environmental: Significantly reduces environmental impact and pollution
• Political: Reduces reliance on foreign oil and increases energy
independence of U.S.
80
Healthcare Operational Challenges
• Hospital functioning under all conditions
• Do no harm
• Ongoing operational management responsibilities
• Integration of new system
Complexity
Need to minimize shutdowns / system outages
81
Factors Driving UCMC
Toward CHP Solution Via PPA
82
83
During Recent Storms Some Hospitals Went Dark…
NYU Langone Medical Center
Experience During Hurricane Sandy
• Explosion at electrical substation causes Power
Failure
• Back-up generators malfunctioned
• Critical care services shut down
• Evacuation of 300 patients
Post-Sandy Implementation
• Planning for a CHP system was underway
before Hurricane Sandy
• Hospital to install a 10.5 MW CHP
system with natural gas combustion and
steam turbine generation
• Expected Completion: Summer 2016
…While Other Hospitals Rode Out The Storm
84
Danbury Hospital (CT) • 371 Bed Hospital
• 4.5 MW Mercury™ 50 gas turbine
During Hurricane Sandy • Area lost power for several days
• Facility continued operation without loss of
power and heat
• Provided continued critical care
Greenwich Hospital (CT) • 175 Bed Hospital
• (2) 1.25 MW Gas Reciprocating Engine
During Hurricane Sandy • Area around lost power for 7 days
• Restarted in Island Mode within 5 Minutes
• Continued operation of facilities
• 156 Patients were provided care
Regulatory Drivers
85
DHHS proposed rule (Federal Register Vol. 78 No. 249) would require
hospitals to have alternate sources of energy to maintain temperatures
to protect patient health and safety and for the safe and sanitary storage
of provisions
President Obama signed Executive Order 13624, setting a national goal
of deploying 40 GW of new, cost effective industrial CHP in the United
States by the end of 2020
• New Jersey has set a CHP goal of 1,500 MW by 2020 with a grant
program
• Maryland has incentives for up to $2M per project (goal of 21.5MW)
• New York City has a CHP goal of 800MW new capacity by 2030
• California has set a goal of 6,500 MW by 2030 and an SGIP incentive
program
• Connecticut has a grant program worth $200/kW
Project Involves Multiple Disciplines & Risks
86
CHP Project
Construction Management
Environmental Permits
Utility Interface/
Interconnection
Finance
Design/Engineering
Incentive Applications
Operations &
Maintenance
End-User
Constraints
Tax Benefits
UCMC Elected to Use a PPA
• Power Purchase Agreement (PPA) has private sector entity:
Owning system assets
Funding all project and life cycle costs
Managing all project risks
Selling electricity to hospital
Generating thermal capacity for heating / cooling
Supplying operations & maintenance and system rebuilds
Providing minimum performance guarantees
Transferring proven system to hospital at option points
87
Rationale to Use PPA from Hospital Perspective
• Use of Federal tax credits and depreciation cannot access
as non-profit hospital
• Ability to lock in future electric rates
• Access to funding source
• Ability to have turnkey delivery of all aspects system
- Development - O&M
- Permitting - Financing
- Design - Incentive management
- Construction
• Risk transference from hospital
• Complexity of project coordination
• Any cost overages borne by ESF
88
CHP Solution Development
• Worked with Clark’s ESF team to evaluate system sizing,
location and options
• Considered various options including:
Two (2) smaller cogeneration totaling 2MW
Upsizing the absorption chiller
Increasing loads on existing electrical buses
• Derived optimal solution after considering:
Physical space
Total system cost
Seasonality of existing building loads
Thermal loads balance with electrical production
Noise mitigation to meet local ordinance db levels
Environmental impacts
BGE incentive requirements` 89
• 2.0 MW reciprocating engine system
Generates electricity, steam, chilled water and hot water
Parallels the utility and provides baseload power
• UCMC will purchase balance of electricity for normal operations
from utility and when CHP is offline
Provides 45% of the existing electricity for the main interconnected loads
Supplies more than 60% of electricity with existing diesel generator
Qualified for over $1.5M in Empower Maryland
• ESF to sell power to UCMC over 20 year term with buyout options
• UCMC to save $9M+ over 20 year life cycle, net of buyout costs
• Project operational in June 2014
90
Power Purchase Agreement Solution
ESF Solution For UCMC…
PPA Structure Highlights
91
• Hospital buys all electricity generated by system from ESF
• Byproduct of waste heat is “free” and used to calculate “effective
price of power”
• Minimum monthly payments from hospital
• Minimum performance guarantees by ESF
• 20 year contract with fixed escalation, allows for budgeting of
utility expense
• Operations and maintenance cost of system including all rebuilds
incorporated into cost for 20 years
• Buy-out options for hospital to purchase system early
• Hospital supplies natural gas – cost of this embedded into
economic analysis and savings
CHP System Solution At UCMC
92
UCMC CHP System Components
• 2 MW Caterpillar Natural Gas Reciprocating Engine
• 350 ton Broad Absorption Chiller
• 500 ton Heat Rejection Cooling Tower
• 2,245 lbs/hour Heat Recovery Steam Generator (HRSG)
• Two Heat Rejection Radiators
• Two Plate and Frame Heat Exchangers
• Power Monitoring Control System (PMCS)
• Energy Management Control System (EMCS)
93
Other Key CHP Major Components
• Sump pump station
• Switchboard/circuit breakers
• Upgraded electrical breakers, panels and control systems
• Field devices:
Natural Gas meters
Heating & cooling system flow meters
Valves, actuators, temperature, and pressure sensors
94
2MW Natural Gas Fed Generator Set
95
Chiller & HRSG Make Tri-Gen System 350 Ton Absorption Chiller
96
2,245 lbs/hour HRSG
System Layout
• The building houses:
Generator
HRSG
Feed water pumps
HT heat exchanger
LT and HT radiators
• Other components located in
or adjacent to the existing
central plant include:
Absorption chiller
Cooling tower
Electrical gear
Control panels
97
• The CHP is located within a single story, 705 sq ft building
in existing mechanical pit
Summary
98
• CHP system a “home run” for UCMC
• PPA structure facilitated delivery of vital infrastructure which
would not have otherwise received funding
• Hospital able to operate during storm/prolonged outage
Improved reliability when combined with diesel generator
(approximately 65% of hospital electrical load)
Serve as a vital community resource during emergencies
• Environmentally friendly solution
2.0MW system equivalent of taking 2,200 cars permanently off our
roads!
• Hospital projected to save over $9 million over 20 years
(savings likely even greater as system operational 30-35 years
with regular maintenance)
Gregg Garbesi
GDF Suez
116
TOUR OF CHP PLANT/ EXHIBITORS
117
QUESTIONS
