1. Considerations for Implementing Combined Heat and Power in Highrise Residential Buildings: Lessons Learned February 4th 2010 1

2. Accelerating the adoption of green building technologies and contributing to the transformation of the built environment.
Objectives:
Evaluate new green building technologies & equipment through in-situ testing and monitoring in new and existing high rise buildings;
Leverage knowledge and experience of leading developer and building owner(s) to strengthen the cleantech product development and commercialization value chain.

3. What is Combined Heat & Power
CHP, or Cogeneration, utilitizes the waste heat from electricity generation to produce simultaneous hot water (thermal energy)
Sewage Treatment
Primary types of equipment:
Microturbines
Reciprocating Engines
Fuel Choices:
Natural Gas (common)
Biofuels (eventually)
Source:

4. Equipment Choices Sewage Treatment Advantages Disadvantages
Reciprocating Engines
High power efficiency
Lower $/kw
Wide range of sizes
Part load operation
Fast start-up time
Multi-fuel capability
Maintenance well understood
Can operate with low pressure gas
Must be cooled
Low power:weight ratio
Out-of-balance forces require substantial foundations and anti-vibration isolation
High levels of low frequency noise
High maintenance costs
Micro Turbines
High reliability due to small number of moving parts
Simplified installation
Low maintenance required
Compact size & Light weight
Acceptable noise levels
Some fuel flexibility
Low emissions
High temperature heat exhaust for heat recovery
Acceptable power quality
Higher Cost/kwh
More specialized expert/qualified service personnel
Extended downtime potential
Sewage Treatment

5. Potential Benefits: CHP + DG
Energy Efficiency and Potential Emissions Reductions
Reduction in building electricity demand
Uninterrupted emergency power generation
Distributed generation:
Enables self reliance & fuel switching flexibility
Reduces efficiency losses from distribution networks
Reduces investment requirements in upstream capacity (smaller centralized power plants)
Sewage Treatment
There is a wrong way to design a CHP system in the residential building context

6. Tridel’s Combined Heat & Power Feasibility Studies
Sewage Treatment
Single Condominium Building
Tridel, TAF, TRCA, OPA, Enbridge, Provident Energy Management
2. Tandem Towers in New Development Complex
Tridel, Enbridge, Private 3rd Party Utility
Grand Triomphe II
540 KW CHP
Solaris I & Metrogate
1.2 MW CHP

7. Typical Time of Use for power in MURBs
Design Considerations
Size system to deliver less than base Power load
To optimize system performance, thermal storage is necessary on larger systems
Then
THen
But you will still have too much heat in summer
To optimize system performance, thermal storage is necessary on larger systems
Then
THen
Typical Time of Use for power in MURBs

8. Key Factors in Designing a System
Scale
Do not exceed the building’s base load. Stay behind the meter. Too complicated to grid connect.
Do not exceed the summer thermal (DHW) load. You’ll be dumping hot water and eroding the environmental benefits.
Size for emergency back-up generator
(Check economics on smaller systems)
Operating Schedule
Plan to run the equipment during Peak Periods mainly - and maybe Mid-Peak.
Do not operate during off-peak, or you’ll erode environmental benefits.
System will mostly likely not be thermal load following for economic reasons.
Thermal Storage
Probably required on residential installations
Adds cost but preserves environmental benefit and system efficiency
Sewage Treatment

9. Key Factors in Designing a System
4. Location
Installing near the ground may require special exhaust venting
Installing on the roof may require additional sound and vibration attenuation
5. Cost
Approximately $1000/kw for equipment
$2500/kw installed
6. Maintenance
Use a reliable operator. These systems can be too complex for a condo board.
7. Design-Build/Own-Operate
A third party can design-build-own-operate, but be mindful of above considerations
Sewage Treatment

10. Illustrative Economics of a 540 KW CHP in a New Building
Assuming Time of Use Rates apply
Operating Schedule: 8 Peak + 6 Mid (7 months) = 3,036 hrs/year
Avoided Costs from Operation: $277,000/yr
Operating Costs (at $0.38/m3): $186,000/yr
Operating Margin (before interest): $91,000
Install Costs: $1,361,000
- $250,000 (Generator)
- $86,400 (Incentive*)
- $X (boiler reduction)
= $1,024,600
Sensitivity
$/kwh + 20% improves Operating Margin to $131,500
+ $/m3 + 20% drops Operating Margin to $80,500
Sewage Treatment
$350/KW BBPNC = $189,000
Drops Capex to $835,600 or $461,000 after loan
Interest: $66,000/yr
Margin after interest: 25000

11. Enabling Conditions Constraints
CSA-282 rule change for emergency back-up systems
Retiring old appliances
Low input fuel prices
Time of Use Rates
Coincident Power/Thermal demand
Provincial price support mechanism
FIT for Biogas ($ $.16/kwh)
Sewage Treatment
Equipment start-up times must meet other code requirements
Install costs higher for retrofit
NG price volatility risk
Existing regulated price plan
Non-alignment in summer
No viable Clean Energy Standard Offer for NG
Availability & Price

12. THANK YOU Jamie James jjames@350capital.com12