Distributed Energy Coalition - Environmental and Energy ... · 6. Reduced system vulnerability 7....

transcript

Energy Reliability

Energy Security

Energy Efficiency

Environmental Stewardship

Economic Development

Distributed Energy Coalition

Distributed Energy: Local Solutions for a National Crisis

Congressional BriefingMarch 9, 2006

Agenda

• Welcome and Overview: Richard Brent, Solar Turbines, Inc.(And When Available)Congressmen Lee Terry (R-NE) and Mike Doyle (D-PA), Co-Chairs, Distributed Energy Caucus

• Why Promote Distributed Energy? John W. Jimison, Executive Director, U.S. Combined Heat and Power Association

• Why Continued Federal Leadership is Critical?Thomas Rosfjord, Distributed Energy Development UTC Power

• What You Can Do to Help?Cathy Van Way, Director, Legislative and Regulatory AffairsCummins Inc.

What is Distributed Energy?

Distributed energy is power generated (and often heat captured) at the point of use.

Why Promote Distributed Energy?

John W. Jimison, Executive Director, U.S. Combined Heat and Power Association

Benefits ofDistributed Energy

Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-wire supply5. Short lead-time, off-the-shelf,

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Energy Security6. Reduced system vulnerability7. Disaster Mitigation8. Disaster Recovery

Energy Efficiency9. Improved fuel efficiency (fuel

economy)10. Optimized use of scarce natural

gas resources11. Eliminates line losses

Environmental Stewardship18. Reduced emissions per unit of

useful output19. Reduces land-use impacts and

NIMBY objections20. Reduces fresh water use

Economic Development12. Lower cost for new electricity than new

central generation and T&D13. Improved energy cost predictability14. No ratepayer investment required

(generation or T&D)15. Creates new high-tech manufacturing

sector, domestic and export16. Creates local jobs for installation,

operation and maintenance17. Supports competitive electricity market

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The Benefits ofDistributed Energy are:

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Energy Reliability• Reliability problems come from the grid itself.• Distributed energy does not require the grid.• Distributed energy can, however, support the grid. 8/13/03 8/14/03

The August 2003 Blackout

Distributed Energy Works for Critical Health Services

• The power stayed on with DE…

– Montefiore Medical Center (Bronx, NY)– Elderwood Healthcare - Oakwood Nursing Home

(Williamsville, NY)– Botsford Health System Kidney Center (Livonia, MI)– South Oaks Hospital (Amityville, NY)

Distributed Energy Works for Residential Buildings

– North Shore Towers (Floral Park, NY)– Spring Creek Towers (Brooklyn, NY) – Laurel Homes Housing Development (Long Island, NY) – Military Academy Residential Officer Housing

(Westpoint, NY)

Distributed Energy Works for Manufacturing

– Frito Lay Queens, NY– Smoked Fish MFG, (Manhattan, NY) Saved > $300K– Maple Lodge Farms Canada– Oak Tree Farm Dairy (Northport Shore, NY)– Entenmann’s Bakery (Bay Shore, NY)

Distributed Energy Works in Critical Public Services

• The lights stayed on and the water kept flowing…

– Central Park Police Station, NY– Rochester Airport, Rochester, NY– Britannia Water Treatment Plant, Ottawa, Canada

Conclusion on Reliability:

Distributed energy provides significantly greater reliability than central generation and T&D, and could prevent billions of dollars in outage losses every year.

Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-wire supply

supply.5. Short lead-time, off-the-shelf,

modular technologyEnergy Security6. Reduced system vulnerability7. Disaster Mitigation8. Disaster Recovery

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Energy SecurityAugust 2005 – Hurricane Katrina

Baptist Medical Center, Jackson, Mississippi

– 624 bed hospital, 3,000 employees– 3.2 MW gas turbine CHP system – installed 1994– Steam used for hot water, sterilization and absorption

chillers

– Grid down for 52 hours starting August 29, 2005 due to Katrina

– CHP system ran islanded and provided power, hot water and air conditioning

– Baptist Medical Center remained nearly 100% operational; the only hospital in the area to do so

Conclusion on Security:

Distributed energy can keep critical health and emergency services functioning, along with vital public and economic functions, during a natural disaster or terrorist attack.

Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-Wire Growth5. Short lead-time, off-the-shelf,

modular technology

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Energy Efficiency

America’s electric grid efficiency has stagnated at about 32% efficiency

1940 1960 1980 2000Fossil Electric Generation Efficiency (at plant, W/O T&D)

Source: EIA, Annual Energy Review 1996

DE and Energy EfficiencyDistributed Energy as CHP more than doubles the electric grid’s energy efficiency

9 units (Losses)

Power Plant fuel

(121 units)Useful

Electricity35 units

50 unitsUseful Heat

Boiler fuel (59 units)

180 units

BOILER

15 units (Losses)

Separate Heat and Power

Combined Heat & Power

CHP system fuel (100 units)

100 units

UsefulElectricity

Useful Heat

PowerPlant

7 (GridLosses)

79 (Gen.Losses)

9 units (Losses)

Power Plant fuel

(121 units)Useful

Electricity35 units

50 unitsUseful Heat

Boiler fuel (59 units)

180 units180 units

BOILER

15 units (Losses)

Separate Heat and Power

Combined Heat & Power

CHP system fuel (100 units)

100 units

UsefulElectricity

Useful Heat

PowerPlant

7 (GridLosses)

79 (Gen.Losses)

Conclusion on Efficiency:

Distributed energy can cut fuel consumption per unit of output to half or a third of conventional usage, especially natural gas supplies now in heavy demand.

modular technology

Environmental Stewardship18. Reduced emissions per unit of useful

output19. Reduces land-use impacts and

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Distributed Energy Costs Less

The cost of meeting the need for new power in the U.S. in 2020:

6.00% 8% 10% 15% 20% 25% 30% 35% 39.38%

% DG of Total US Generation

New Cent. Gen. New Dist. Gen. T&D

Distributed Energy is the FUTUREof the U.S. Electric System:

The U.S. electricity industry will inevitably evolve toward smaller, decentralized, efficient, and more autonomous power generation, interconnected to a “smart grid,” to support a fully computerized society dependent on highly secure and reliable power. There is no alternative.

Economic Development

The Galvin Electric Initiative concludes that the “perfect electric system” requires distributed energy for:

– Portable Power (Distributed Energy and controls)– Building Integrated Power (energy management &

CHP)– Distributed Power (microgrids)– Fully Integrated Power (full integration with the

grid)The Galvin Initiative vision is powerful, unconventional, and capable of challenging the best minds brought to the table. Bob Galvin former Motorola CEO and Chairman

Project Director: Kurt Yeager former President of the Electric Power Research Institute

Conclusion on Economic Development:

Distributed energy can reduce the cost of new electricity infrastructure while supporting domestic and global job creation for U.S. companies, at no cost to electric utility ratepayers.

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Environmental Stewardship

Energy Efficiency Fuel Diversity Distributed Energy

=EnvironmentalStewardship

– Reduces greenhouse gases– Reduces criteria pollutants– Conserves fresh water– Husbands fuel resources– Ready for bio-fuels and bio-

fuel creation processes– Cuts land-use impacts and

NIMBY problems

Conclusion on Environmental Stewardship:

Distributed energy can generate increased electric power for our economy with significantly decreased environmental impacts.

Twenty Benefits ofDistributed Energy

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Only FOUR of the Twenty Benefits Accrue to the User

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The Others are PUBLIC Benefits…

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General Conclusion:

It is very much in the PUBLIC interest to support distributed energy, even if the private incentives are not sufficient to overcome the barriers.

Distributed Energy Coalition - Environmental and Energy ... · 6. Reduced system vulnerability 7....

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