1. Plug & Play CHP? Is Your Pocket About to be Picked?

2. CHP Used to Only Be Available As Custom Designed and Site Built
System Integration
Prime over
Heat recovery
Parallel switchgear
Thermal manifold
Steam generator
Chillers
Diverters
Cooling
Monitoring
On-site assembly
Commissioning and testing
Best suited for large
industrial applications
These are large installation costing 100’s of million for a 50 to 75MW generation facility with heat recovery.
Custom designed central plant with specialized individually produced pieces of equipment.
Example: Gas CT to HRSG turbine to steam turbine centrifugal chiller
Cooperative
July 30, 2015

3. Why Should Utilities Care?
Customers Like It
Reduces energy costs
Improves reliability
Keeps running during blackouts, hurricanes
Price stability
Utility opportunities and problems
Low cost additional generation capacity
T&D congestion relief
EPA Clean Power Plant rule compliance
Better than PV in several ways…
Lost revenue potential
Cooperative
July 30, 2015

4. A Very Simple CHP Example
Prime movers:
Reciprocating engines
Combustion turbines
Steam turbines
CHP Makes:
Electricity
Cold water
Absorption or turbine chillers
Steam
Hot water
Exhaust – high temperature for steam
Jacket – close to boiling (absorption chiller)
Thermal manifold – blend to suit
Cooperative
July 30, 2015

5. Competition from CHP Provider
From: David V. Downes Sent: Friday, September 19, :48 PM To: Alexander M. Grier Cc: Christopher S. Simms Subject: CHP
Lex
Talk about Providential timing.  I got a call from CLIENT this afternoon to see if I could help them evaluate the impact to their system from loss of the hospital to a 1 MW cogen facility.
I am getting information from CLIENT and will look at next week.
How about that?
Dave
Cooperative
July 30, 2015

6. There’s A New Game in Town
Mr. Hospital Administrator –
You pay a lot of money for Energy
Electric, Heat, and Air Conditioning
On Site Combined
Heat and Power (CHP)
There’s A New Game in Town
Cooperative
July 30, 2015

7. Here is what vendors can do!
Packaged small foot printed pre-engineered CHP equipment
Local operations and maintenance contracts with 24/7 monitoring
Base load sized for thermal needs
Cooperative
July 30, 2015

8. Consider the possibilities
Cost of natural gas fuel low
Easily transportable
Connects to existing system
Low capital cost for installed capacity
We can put together a financing package to keep things simple
Cooperative
July 30, 2015

9. CHP Planning and Operating Characteristics
Designed not to have net export energy or excess thermal output
Usually operates in parallel with grid
CHP prime mover has high capacity factor
Availability guarantee >90% not uncommon
Maintenance in low demand periods
Forced outages supported by your interconnection
Cooperative
July 30, 2015

10. To Summarize:
200 Bed Hospital pays $1.36 million in total annual electric cost to Utility-Revenue
Hospital pays for fuel and maintenance of boilers for heat
For tax exempt entity CHP Net Savings - $368,021/year IRR 17.6% on a $2.0 million investment
For taxable entity CHP Net Savings - $461,547/year IRR 23.88% on a $1.8 million investment
Cooperative
July 30, 2015

11. What Does CHP Do to Utility Revenue and Capacity Requirements?
Lost revenue from:
Sales displaced by prime mover
Sales lost for cooling heating
Load factors could worsen
95% CHP capacity factor guarantees available
CHP maintenance and forced outages still occur
Cooperative
July 30, 2015

12. Here’s Why Energy Served By Solar 20% 40% 60% 80% 100%
Energy required by the customer is the area under the curve.
If 600 KW of solar is added, the total energy provided by the Utility is affected in a minor way.
If 600 KW of CHP is added, the energy provided by the Utility is nearly half of the total and the hourly delivery is much more variable.
Power delivered 24 x 7 will drop.
Energy Served
By Solar
20%
40%
60%
80%
100%
Cooperative
July 30, 2015

13. Standby Charges Will Not Cure Revenue Erosion
But Participation Can!
Cooperative
July 30, 2015

14. Hometown Electric Response?
Do nothing
Hope for the best
React if threat is real
Prepare and investigate to protect utility customers
Establish standby rates
Create new fixed cost allocation
Consider dual metering with time of use rates
Advise your power supplier of potential losses
Reach out to major customers – be ready to go
Check the pulse, temperature, and inclination of major customers
Determine a business plan to participate, perhaps own and operate the CHP facility
Negotiate with your power and fuel suppliers
Cooperative
July 30, 2015