1Southeast Energy Efficiency Alliance | www.seealliance.org

WEBINAR SERIES

Pre-Conference Webinar: Combined Heat and Power in the SoutheastOctober 13th, 2016

2Southeast Energy Efficiency Alliance | www.seealliance.org

Regional Energy Efficiency Organization

Eleven-state footprint

Non-profit, non-partisan

The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities.

Regional Energy Efficiency Organization

Eleven-state footprint

Non-profit, non-partisan

The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities.

SEEA Serves the Southeast

3Southeast Energy Efficiency Alliance | www.seealliance.org

The SEEA & AESP SE Conference

4Southeast Energy Efficiency Alliance | www.seealliance.org

Upcoming Webinars

Missed one? Find webinar materials at www.seealliance.org

November 10th, 2016

5Southeast Energy Efficiency Alliance | www.seealliance.org

Open And Hide Your Control Panel

Join Audio• Choose “Mic & Speakers” to use

VoIP• Choose “Telephone” and dial

using the information provided

Questions• Submit questions and

comments via the Questions panel

GoTo Webinar Instructions

6Southeast Energy Efficiency Alliance | www.seealliance.org

Speakers

Meegan KellyACEEE

Anne HampsonICF

October 13,

2016

Anne Hampson

Senior Manager

ICF

Combined Heat and Power in the Southeast

A pre-conference webinar

Over Two-Thirds of the Fuel Used to Generate Electrical Power in the U.S. Is Lost as Heat

SEEA Webinar - CHP in the

Southeast 8

What is Combined Heat and Power?

CHP is an integrated energy

system that:

Generates electrical and/or mechanical

power

Recovers waste heat for:

–Space heating

–Water heating

–Space cooling

–Dehumidification

Is located at or near a factory or building

that can use the energy output

Can utilize a variety of technologies and

fuels

CHP is also known as cogeneration

9

SEEA Webinar - CHP in the

Southeast

Defining Combined Heat & Power (CHP)

10

The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy

source

Conventional CHP (also referred to as Topping Cycle CHP or Direct Fired CHP)

CHP Energy Efficiency (combined heat and power)

70% to 85%

Separate Energy Delivery:

• Electric generation – 33%

• Thermal generation - 80%

• Combined efficiency – 45% to 55%

SEEA Webinar - CHP in the

Southeast

Defining Combined Heat & Power (CHP)

11

The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy

source

Waste heat from the

industrial process

Fuel

Electricity

Energy

Intensive

Industrial

Process

Heat

Heat recovery

steam boiler

Steam

Turbine

Fuel first applied to produce useful

thermal energy for the process

Waste heat is utilized to produce

electricity and possibly additional

thermal energy for the process

Simultaneous generation of heat and

electricity

No additional fossil fuel combustion

(no incremental emissions)

Normally produces larger amounts

electric generation (often exports

electricity to the grid; base load

electric power)

Waste Heat to Power CHP(also referred to as Bottoming Cycle CHP or Indirect Fired CHP)

HRSG/Steam Turbine

Organic Rankine Cycle

Backpressure Turbine

SEEA Webinar - CHP in the

Southeast

12

Industrial Institutional

Residential Utility Scale

CHP in the U.S. Represents a Variety of Fuels, Technologies, Sizes, and Applications

Commercial

SEEA Webinar - CHP in the

Southeast

CHP Today in the U.S.

SEEA Webinar - CHP in the

Southeast 13

81 GW of installed CHP at over

4,300 industrial and commercial

facilities

8% of U.S. Electric Generating

Capacity; 14% of Manufacturing

Avoids more than 1.8 quadrillion

Btus of fuel consumption annually

Avoids 241 million metric tons of

CO2 compared to separate

production

DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015)

What Are the Benefits of CHP?

CHP is more efficient than separate generation of electricity and

thermal energy

Higher efficiency translates to lower operating costs

Higher efficiency reduces emissions of all pollutants, including CO2,

NOX, and SO2

CHP can increase power reliability and enhance power quality

On-site electric generation can help reduce grid congestion

SEEA Webinar - CHP in the

Southeast 14

CHP Is a Clean, Efficient Method of Providing Energy Services

SEEA Webinar - CHP in the

Southeast 15

Source: EPA CHP Partnership

CHP’s Increased Efficiency General Results in Lower Emissions

SEEA Webinar - CHP in the

Southeast 16

Source: EPA CHP Partnership

CHP Is Used at the Point of Demand

SEEA Webinar - CHP in the

Southeast 17

DOE/ICF CHP Installation Database (U.S. installations as of Dec. 31, 2015)

CHP Installations Less than 100 MW Represent an Increasing Share of New Capacity

SEEA Webinar - CHP in the

Southeast 18

CHP’s Higher Efficiency Results in Energy and Emissions Savings

Category 10 MW CHP 10 MW PV 10 MW Wind10 MW

NGCC

Annual Capacity Factor 85% 22% 34% 70%

Annual Electricity 74,446 MWh 19,272 MWh 29,784 MWh 61,320 MWh

Annual Useful Heat

Provided103,417 MWht None None None

Footprint Required 6,000 sq ft 1,740,000 sq ft 76,000 sq ft N/A

Capital Cost $20 million $60.5 million $24.4 million $10 million

Annual Energy Savings,

MMBtu308,100 196,462 303,623 154,649

Annual CO2 Savings,

Tons42,751 17,887 27,644 28,172

Annual NOx Savings 59.9 16.2 24.9 39.3

SEEA Webinar - CHP in the

Southeast 19

Source: Combined Heat and Power: A Clean Energy Solution, August 2012, DOE and EPA

Drivers for CHP Growth

Benefits of CHP recognized by Federal and State policymakers

White House Executive Order: 40 GW by 2020

Increasing state interest (Ohio, Maryland, New Jersey, etc.)

Game changing outlook for natural gas supply and price in North America

Resulting growth in the industrial sector

Opportunities created by environmental drivers

Clean Power Plan

Pressures on utility coal and oil capacity

CHP offers resiliency options when faced with man-made and natural

disasters

SEEA Webinar - CHP in the

Southeast 20

Federal Support for CHP

Executive Order: “Coordinate and strongly encourage efforts to achieve a national goal of deploying 40 gigawatts of new, cost-effective industrial CHP in the United States by the end of 2020.”

DOE focuses technology deployment support for CHP—TAPs and SEEAction—Regional meetings in support of Executive Order

EPA recognizes CHP as an efficiency measure under developing greenhouse gas emission standards and

promoting output-based options that recognize CHP

benefits (ICI Boiler MACT and Utility MACT (MATS), and Clean Power Plan)

FERC pressing to open ancillary services markets to DG and CHP

SEEA Webinar - CHP in the

Southeast 21

CHP Provides Energy Reliability and Resiliency Benefits

Traditional backup generators do not

always perform during emergencies

A system operating on a daily basis (CHP) is more

reliable

CHP provides continuous benefits to hos

facilities, rather than just during

emergencies

CHP systems that kept running during

Sandy:

South Oaks Hospital – Amityville, NY, 1.25 MW

The College of New Jersey – Ewing, NJ, 5.2 MW

Public Interest Data Center – New York, NY, 65 kW

Bergen County Wastewater Plant – Little Ferry, NJ

New York University – New York, NY

Sikorsky Aircraft Corporation – Stratford, CT

22

SEEA Webinar - CHP in the

Southeast

Critical Infrastructure Facilities That Benefit from CHP

Healthcare Hospitals, nursing homes

Wastewater Treatment Plants

Facilities of Refuge College campuses, schools, community

centers

Hotels with kitchens, laundries

Food distribution, including cold

storage and supermarkets

Communications/Data Centers

Public Safety Jails/prisons, fire/EMS

Transportation Centers (Airports)

23

SEEA Webinar - CHP in the

Southeast

The Potential for Additional CHP is Nationwide

24

<1,000 MW

1,000-3,000 MW

3,000-5,000 MW

>5,000 MWSource: U.S. Dept. of Energy, “Combined Heat and Power in the United States”, prepared by ICF International, March 2016.

SEEA Webinar - CHP in the

Southeast

Where is the Remaining Potential for CHP?

25

Source: U.S. Dept. of Energy, “Combined Heat and Power in the United States”, prepared by ICF International, March 2016.

SEEA Webinar - CHP in the

Southeast

CHP Technical Potential - Southeast

SEEA Webinar - CHP in the

Southeast 26

Technical Potential by

State (MW)

Technical Potential by Application

(MW)

Thank you

Anne Hampson

ICF

Anne.Hampson@icf.com

703-934-3324

Combined Heat and Power in the Southeast

A pre-conference webinar

Meegan Kelly

Senior Research Analyst, Industry Program

ACEEE

October 13, 2016

The American Council for an Energy-Efficient Economy (ACEEE)

• ACEEE is a 501(c)(3) nonprofit that acts as a catalyst

to advance energy efficiency policies, programs,

technologies, investments, & behaviors

• 50 staff; headquarters in Washington, D.C.

• Focus on end-use efficiency in industry, buildings, &

transportation

• Other research in economic analysis; behavior;

energy efficiency programs; & national, state, & local

policy

• Funding:

◦ Foundation Grants (52%)

◦ Contract Work & Gov’t. Grants (20%)

◦ Conferences & Publications (20%)

◦ Contributions & Other (8%)

www.aceee.org/@ACEEEdc29

Overview

• CHP in the 2016 State Energy Efficiency Scorecard

• Policies from highest ranking states

• Snap shot of CHP policy in the Southeast

• Opportunities to advance CHP in the Southeast region

• Utility-ownership model

• Trends in the Southeast

31Source: Berg, et al 2016: http://aceee.org/research-report/u1606

1. Utility programs and policies

2. Transportation policies

3. Building energy codes

4. Combined heat and power

5. State government-led initiatives

6. Appliance and equipment efficiency

standards

2016 State Energy Efficiency Scorecard

CHP Scorecard Methodology

Metric Points

Interconnection standards 0.5 pts

Encouraging CHP as a resource 2.0 pts

–EERS treatment (0.5 pts)

–CHP resource acquisition programs (0.5 pts)

–Production goal (0.5 pts)

–Revenue streams (0.5 pts)

Deployment incentives 0.5 pts

Other supportive policies 1.0 pt

Total 4 pts

Highest ranking states on CHP

33

• CA, MD, MA earned full 4 points

• All allow CHP within EERS, offer deployment incentives, and have

supportive policies

Encouraging CHP as a resource

State

Interconne

ction (0.5)

EERS

treatment

(0.5)

CHP

Programs

(0.5)

Production

Goal (0.5)

Revenue

streams

(0.5)

Deployment

Incentives

(0.5)

Supportive

Policies

(1) Score (4)

California 0.5 0.5 0.5 0.5 0.5 0.5 1 4

Maryland 0.5 0.5 0.5 0.5 0.5 0.5 1 4

Massachusetts 0.5 0.5 0.5 0.5 0.5 0.5 1 4

New York 0.5 0.5 0.5 0.5 0 0.5 1 3.5

Rhode Island 0.5 0.5 0.5 0 0.5 0.5 1 3.5

Maine 0.5 0.5 0 0.5 0 0.5 1 3

Connecticut 0.5 0.5 0 0 0 0.5 1 2.5

Minnesota 0.5 0.5 0 0 0 0.5 1 2.5

Oregon 0.5 0.5 0 0 0 0.5 1 2.5

Pennsylvania 0 0.5 0 0 0.5 0.5 1 2.5

Washington 0.5 0.5 0 0 0 0.5 1 2.5

Source: Berg, et al 2016: http://aceee.org/research-report/u1606

Southeast state scores for CHP

34

• FL, NC, and TN earn high scores in region

• Most states have supportive policies

• CHP is not currently prioritized as an energy resource in Southeast

Encouraging CHP as a resource

State

Interconnec

tion (0.5)

EERS

treatment

(0.5)

CHP

Programs

(0.5)

Production

Goal (0.5)

Revenue

streams

(0.5)

Deployment

Incentives

(0.5)

Supportive

Policies

(1) Score (4)

Florida 0 0 0 0 0 0.5 0.5 1

North Carolina 0.5 0 0 0 0 0 0.5 1

Tennessee 0 0 0 0 0 0 1 1

Georgia 0 0 0 0 0 0 0.5 0.5

Kentucky 0 0 0 0 0 0 0.5 0.5

Louisiana 0 0 0 0 0 0 0.5 0.5

Mississippi 0 0 0 0 0 0 0.5 0.5

Alabama 0 0 0 0 0 0 0 0

Arkansas 0 0 0 0 0 0 0 0

South Carolina 0 0 0 0 0 0 0 0

Source: Berg, et al 2016: http://aceee.org/research-report/u1606

Recent CHP installations in Southeast

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140

AL AR FL GA KY LA MS NC SC TN

NumberofInstallations

MWInstalledCapacity

Totalnewcapacityinstalledin2014and2015(MW)

TotalnumberofnewCHPinstallationsin2014and2015

Source: US DOE CHP Installation Database (as of December 31, 2015)

Recent CHP policy action in Southeast

North Carolina: Expiration of tax credit for CHP systems at the

end of 2015; NCUC ruling that only waste heat component of

topping cycle CHP meets definition of EE measure.

Mississippi: “Combined Heat and Power: Opportunities and

Barriers” study completed and findings released in 2016.

Tennessee: In 2015, TVA issued a request for proposals to

industrial customers to provide up to $7 Million for at least 5 MW

of customer-owned generation from CHP.

Learn about CHP policies in your state

ACEEE State and Local

Policy Database

http://database.aceee.or

g/

Opportunities to encourage CHP in states

• Define CHP as an eligible technology for meeting state EE or RE goals

• Develop complementary programs designed to acquire CHP resources

• *Engage utilities as dedicated partners*

Two ways to plan and deploy CHP to maximize system benefits

Customer-ownership Model• CHP installed by customers for

onsite benefits at their facilities

• State policy encourages utilities

to incentivize CHP systems for

energy savings and additional

benefits

• Customer invests in CHP with

financial support from utility

Utility-Ownership Model• CHP installed by utilities at

customer sites for overall

system benefits

• Investments are regulated

assets and included in utility

resources planning activities

• Utility invests in CHP and

customer takes useful thermal

energy

39

What are the benefits of utility-owned CHP?

• Cheaper than other supply alternatives

• Alleviates grid constraints

• Avoid investments in transmission and distribution

infrastructure

• Less risky investment overall

• More reliable and resilient power for customer

• Better service and value for customers

• Air quality improvements and carbon reductions

• Encourages economic development

40

Utility ownership trends in Florida

• Florida Public Utilities

built, owns, and operates a

20 MW CHP system at a

large customer site

providing:

• electricity to Amelia Island

residents

• steam to Rayonier pulp mill

• PSC Chair praises utility-

owned CHP business

modelSource: https://www.youtube.com/watch?v=K2LSkEMKn70&feature=youtu.be

Utility ownership trends in Carolinas

• Duke Energy added 40

MW of CHP to its 2015

Integrated Resource

Plans (IRP)

• Duke Energy, Duke

University partner to

propose 21 MW campus

CHP system

Utility ownership trends in Alabama

• Alabama Power already

owns 500 MW of CHP in its

service territory, primarily at

large industrial facilities

• PSC approval of utility

request for need to procure

500 MW of RE/CHP

Sources: NACAA 2015, http://www.4cleanair.org/sites/default/files/Documents/Chapter_2.pdf; SEE

Action 2013, https://www4.eere.energy.gov/seeaction/publication/guide-successful-implementation-

state-combined-heat-and-power-policies.

Overview of Key Points

• States are pursuing CHP to achieve

system-wide benefits; SE has potential to

do more

• Examples show that well-designed policies

effectively encourage CHP

• More than one policy approach can

maximize the benefits of CHP

• Exploring utility ownership of CHP in the

Southeast is a path to achieve policy goals

and encourage smart deployment.44

Thank you!

Meegan Kelly

Senior Research Analyst, Industry

mkelly@aceee.org

202-507-4008

46Southeast Energy Efficiency Alliance | www.seealliance.org

Questions?

47Southeast Energy Efficiency Alliance | www.seealliance.org