Integrated Energy Combined Heat & Power

(Making a Comeback)

Combined Heat & Power – The Basics

Bob Albertini
Pepco Energy Services
August 11, 2015

Phoenix Convention Center • Phoenix, Arizona

Combined Heat & Power Overview

• Overview
– Basic concept
– Typical configuration &
components
• Benefits
• Characteristics of a
good opportunity
• Market drivers
• Case studies

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CHP Overview – Distributed Generation

• Distributed Generation:
– An electric generator;
– Located at-or-near the end user;
– Generates at least a portion of the electric load
• Typical DG Technologies:
– Engine Generators
– Turbine Generators
– Solar Photovoltaic
– Wind Turbine
– Fuel Cells

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 CHP – Basic Concept
• CHP is:
– A specific type of Distributed Generation
– The simultaneous production of electricity and heat from a single fuel source
– An integrated energy system (not a single technology) that can be modified
depending upon the needs of the energy end user
– Highly efficient
• CHP:
– 70% to 80%
• Separate Elec. &
Thermal
– 40% - 50%
‒ Can use various
Fuels:
• Natural Gas
• Landfill/Biogas
• Biomass

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CHP – Typical Configuration
• Use fuel to first Generate Power, then
• Capture resulting heat for use as:
– Heating
– Cooling Thermally
– Both Activated
Machine

“Prime Mover”

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CHP – Typical Components

• Prime Movers (Converts fuel input to mechanical shaft power)

– Reciprocating Internal Combustion (IC) Engine
– Combustion Turbine IC Engine Microturbine
– Steam Turbine
– Microturbine
• Electrical Equipment
– Generator (Converts mechanical shaft power to electrical energy) Combustion Turbine
– Step-up transformer & grid interconnection gear
• Heat Recovery Equipment
– Heat recovery steam generator (HRSG)
• Thermally Activated Machine/Thermal Load Transformer
– Energy transfer stations/air handling units
– Process Heat
– Economizer
– Absorption or steam driven chillers HRSG Absorption Chiller

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 CHP – Typical Components – Prime Movers
Reciprocating Combustion
Steam Turbine MicroTurbine
IC Engine Gen. Turbine
•Fast Start up •High Reliability •High overall •Small # of moving
•Hi part load efficiency •Low Emissions efficiency parts
Advantages •Island mode capable •High-grade Heat •Any fuel type •Compact size & wt.
•Operates on low •No cooling required •Long working life •Low emissions
pressure gas •High reliability •No cooling required
•High maintenance •Requires gas •Slow start up •High costs
costs compression •Low power to heat •Low temp. thermal
•Low temperature •Poor efficiency at low ratio output
Disadvantages
thermal output loads •Lower mech.
•Higher emissions •Output varies w/ Efficiency
•Needs cooling ambient temp
Typical Sizes < 5MW 500kW – 300MW 500kW – 300MW+ 30kW – 1MW
Installed Costs
1,500 – 2,900 1,200 – 3,300 670 – 1,100 2,500 – 4,300
$/kW
O&M Costs
0.9 - 2.5 0.9 - 1.3 0.6 – 1.0 0.9 – 1.3
¢/kWh
Availability 92% – 97% 90% – 98% Near 100% 90% – 98%
Part Load OK Fair - Poor OK OK

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 CHP – Typical Components – Electrical Equipment

• Electrical Generator
‒ Converts mechanical shaft power to electricity
‒ Typical output voltage
• IC Engine: 480V – 4,160V
• Gas/Steam Turbines: 4,160V – 13,800V
• Microturbines: 480V
‒ Typically synchronous
• Can produce power during grid blackouts Generator on IC Engine
• Grid interconnection
‒ Several Grid Interconnection Standards
• IEEE 1547; FERC Order 2006; State-specific standards
‒ Required for safety, grid integrity, equipment protection
‒ Parallel Operation is typical/preferred
• Export mode  Flexible CHP system sizing
• Non-export mode Load following

Switchgear

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 CHP – Typical Components – Heat Recovery

• Heat is recovered from:

‒ Hot water
‒ Hot exhaust gas
‒ Steam
HRSG
• Typical uses:
‒ Jacket water  Boiler economizer, space/process Economizer
heating
‒ Exhaust gas  Heat recovery steam generator (HRSG)
• Steam 
• Energy transfer stations
• Air handling units
• Absorption/steam chillers Absorption Chiller
• Industrial processes

Air Handling Units

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Why Pursue a CHP Project?
Radiation (5%)

• Reduced Energy Costs Exhaust

Not Recovered (15%)
– Efficient Fuel Utilization

Fuel Input Energy (100%)

Exhaust (20%)
– Waste Heat captured for useful work 850oF

Recoverable Energy (80%)

– No transmission and distribution losses Jacket Coolant
(30%)
• Improved Electric Reliability 150oF – 250oF

– Reduced susceptibility to grid failures Shaft Power to

Drive Load
• Improved Energy Security (30%)

– Generation is “on-site” Energy Distributions for a

Typical Reciprocating Engine
– Particularly applicable to Military Bases
• Improved Power Quality
– Reduced line losses/steady voltage

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What Makes a Good CHP Opportunity?

Combination of Technical, Financial, Regulatory Factors

• Technical
– Long operating hours (>5000 hrs/yr)
– High, coincident, electrical & thermal loads (>4000 hrs/yr)
– Existing and aging central plant
– Power quality/reliability issues
• Economic/Financial Technical
– Wide spark spread
– Low or no standby charges/penalties
– Access to Funding/Financing
• ESPC’s/UESC’s Economic/ Regulatory/
• Utility Rebates and Incentives Financial Utility
• Regulatory/Utility
– Favorable permitting environment
– Simple, clear, fair interconnection requirements

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CHP Market Driver – Stable, Low Gas Prices
Henry Hub Gas Prices expected to Remain between $3.00 and $6.00 thru 2030

ICForecast: Natural Gas – Strategic Forecast, Q3 (July) 2015 Base Case

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 Spark Spread Improving for CHP

Avg. Commercial Natural Gas Price Avg. Commercial Retail Electricity Price
16.00

14.00
$/MMBTU Cents/kwh

12.00
Forecast
Spark Spread
10.00

8.00

6.00

4.00

2.00
Historical Forecast
0.00
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
2027
2029
Year

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 CHP Case Study – National Institutes of Health (NIH)

• UESC Financed Project

• PES designed, permitted and built
• SGT-600 23MW combustion turbine
– Inlet air cooling
– 1200 HP gas compressor
• Dual fuel capability
• 100,000 lbs/hour steam unfired
• 180,000 lbs/hour steam fired
• Interfaces to existing systems
• Interconnect with PEPCO/PJM
• 15 year O & M contract
• Provision for Temporary boilers
• 2011 CHP Energy Star Award

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 CHP Case Study – PES Owned Midtown Thermal Plant

• Solar Taurus 60 5.7MW Combustion

Turbine
– Dual fuel Capability
– Inlet air cooling
• Turbine heat recovery provides base load
steam demands
– 27,000 lbs/hour steam unfired
– 65,000 Lbs/hour steam fired
• 350 HP gas compressor
• Power export
– Interconnect ACE/ PJM
• PES designed, permitted, built
• Reduces overall site emissions
• 2015 CHP Energy Star Award

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 CHP Case Study – DC Water

• 15 MW Combined Heat and Power (CHP) facility

– Three 4.6 MW Solar Mercury 50 low-nitrogen
oxide gas turbines
– Digester gas cleaning and compression
– Heat recovery steam generators, duct burners
– Backup boiler
• Uses biogas from DC Water’s water treatment
process to produce steam and electricity
– Steam returned and used in DC Water’s treatment
process
• Contract value
– Construction: $82 million
– O&M: $90 million
• Schedule
– Contract signed February 2012
– Construction begins Summer 2012
– Construction completion August 2015
• 15-year O&M Phase begins

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 Questions & Contact Information

Bob Albertini
Pepco Energy Services
balbertini@pepcoenergy.com
708-710-5645

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