Phoenix Convention Center Phoenix, Arizona Combined Heat and Power for Federal Facilities and the U.S. DOE CHP Technical Assistance Partnerships Track.

Phoenix Convention Center • Phoenix, Arizona

Combined Heat and Power for Federal Facilities and the

U.S. DOE CHP Technical Assistance Partnerships

Track 6: Integrated Energy Session: CHP Making a Comeback

Tom BroderickU.S. DOE Southwest CHP Technical Assistance Partnership

August 11, 2015

Energy Exchange: Federal Sustainability for the Next Decade

U.S. DOE CHP Technical Assistance Partnerships

Energy Exchange: Federal Sustainability for the Next Decade3

CHP Technical Assistance Partnerships

Technical AssistanceProviding technical assistance to end-users and stakeholders to help them consider CHP, waste heat to power, and/or district energy with CHP in their facility and to help them through the development process from initial CHP screening to installation.

Education and OutreachProviding information on the energy and non-energy benefits and applications of CHP to state and local policy makers, regulators, end users, trade associations, and others.

Market Opportunity AnalysisSupporting analyses of CHP market opportunities in diverse markets including industrial, federal, institutional, and commercial sectors

Energy Exchange: Federal Sustainability for the Next Decade

Where is the Remaining Potential for CHP?

Source: ICF internal estimates (2014)

Food Pro

cessi

ngPap

er

Chemicals

Refining

Primary

Metal

s

Other I

ndustrial

Was

tewate

r Tre

atment

Hospita

ls

College

s/Unive

rsities

Milit

ary

Other C

ommercial

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000Existing CHP Capacity vs Technical Potential

CHP Technical Potential

Existing CHP Capacity

Capa

city

(MW

)

Energy Exchange: Federal Sustainability for the Next Decade

CHP Technical Potential in Federal Facilities

Federal Facilities,

238

Military; 758

CHP Technical Potential by Sites (996 Sites)

Federal Facilities, 197.8

Military; 1,846.1

CHP Technical Potential by MW (2,043.9 MW)

Source: ICF CHP Technical Potential Estimates, 2013

Energy Exchange: Federal Sustainability for the Next Decade6

o Department of Defense (Air Force, Army, Coast Guard, Marines, Navy)o Department of Agriculture (USDA)o Department of Energy (DOE)o Department of Health and Human Services (HHS)o Department of Housing and Urban Development (HUD)o Department of Justice (DOJ), including the Bureau of Prisons (BOP)o Department of Veterans Affairs (VA)o General Services Administration (GSA)o National Aeronautics and Space Administration (NASA)o US Postal Service (USPS)

Facility types include large campuses, hospitals/medical centers, laboratories/research buildings, industrial, offices, data centers

Agencies with CHP Systems

Energy Exchange: Federal Sustainability for the Next Decade7

Benefits of CHP for Federal Facilities

• Attain energy efficiency goals• Environmental sustainability• Emissions reduction goals• Net zero• Energy security/resiliency

Energy Exchange: Federal Sustainability for the Next Decade

o Large Complex Projects— Agency familiarity with traditional ECMs

o Longer Development Cycleo Measuring “Savings” for ESPC/UESC (vs. just selling power)

— Baseline – establishing amount and cost of displaced energy— Not straightforward – multiple inputs/outputs/assumptions— Need to calculate “Net Reduction”

• Increase in natural gas consumption for CHP• Reduction in electricity purchased• Reduction in natural gas for existing boiler

o O&M by existing plant personnel—ESPC requires guaranteed performance

8

Federal CHP Market Challenges

Energy Exchange: Federal Sustainability for the Next Decade9

CHP for Critical Infrastructure

Energy Exchange: Federal Sustainability for the Next Decade

CHP and Critical Infrastructure

“Critical infrastructure” refers to those assets, systems, and networks that, if incapacitated, would have a substantial negative impact on national security, national economic security, or national public health and safety.” Patriot Act of 2001 Sec. 1016 (e)

Critical Infrastructure CHP Applications:

o Military and national securityo Hospitals and healthcare

centerso Water and wastewater

treatment plantso Police, fire, and public safety o Centers of refuge (often

schools or universities)o Food distribution facilitieso Telecom and data centers

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o A key principle of disaster preparedness: ability to maintain operation despite a devastating event

o CHP (if properly configured):– Offers the opportunity to

improve critical infrastructure resiliency

– Can continue to operate, providing uninterrupted supply of electricity and heating/cooling

– Can be more reliable than backup generators

Critical Infrastructure Resiliency

Energy Exchange: Federal Sustainability for the Next Decade12

Combined Heat and Power: Enabling Resilient Energy Infrastructure for

Critical Facilities

Read More:

Oak Ridge National LaboratoryMarch 2013

https://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf

Guide to Using Combined Heat and Power for Enhancing Reliability and Resiliency in

Buildings

DOE and EPASeptember 2013

http://www.southwestchptap.org/Data/publications/chp_for_reliability_guidance.pdf

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How to Implement a CHP Project with the Help of the CHP TAP

Energy Exchange: Federal Sustainability for the Next Decade

CHP TAP Technical Assistance

Screening and

Preliminary Analysis

Feasibility Analysis

Investment Grade

Analysis

Procurement, Operations, Maintenance

, Commissioni

ng

Uses available site info. Estimates savings, installation costs, simple paybacks, equipment sizing and type

Quick screening questions with spreadsheet payback calculator (Free)

3rd Party review of engineering analysis. Review equipment sizing and choices

Review specifications and bids, limited operational analysis

Energy Exchange: Federal Sustainability for the Next Decade

Federal CHP Project Finance Options

Direct Development

Federal Construction Acquisition

Military Construction(MI

LCON)

Facility Sustainment

Restoration and Modernization

(FSRM)

External Capital

Energy Savings Performance

Contacts(ESPC)

Utility Energy Service

Contracts (UESCs)

Power Purchase

Agreements (PPAs)

Enhanced-Use Leases (EULs)

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o Evaluate CHP as an energy efficiency strategy to help meet energy and emissions reduction goals

o Consider CHP as a key resource to meet renewable energy portfolio targets or goals

o Examine new facility and facility modernization planning policies for proper evaluation of CHP options

o Review critical infrastructure and energy resiliency needs and role of CHP with district energy and microgrids

o Partner with DOE / CHP TAPs on an agency-wide CHP market assessment to identify cost-effective projects

Five Ways to Advance CHP Development Opportunities

Energy Exchange: Federal Sustainability for the Next Decade17

President’s Executive Order 13624: 40 GW of new CHP by 2020

• Achieving this goal would:

– Increase total CHP capacity in the U.S. by 50 percent – Save $10 billion a year in energy costs– Save one quadrillion Btus of energy –

equivalent to 1% of all U.S. energy use – Reduce emissions by 150 million metric tons of CO2

annually — equivalent to 25 million cars – Result in $40-$80 billion in new capital investment in

manufacturing and other U.S. facilities

Source: DOE/EPA, CHP: A Clean Energy Solution, August, 2012, www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

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Recommended CHP Resources and Tools

Energy Exchange: Federal Sustainability for the Next Decade

A Few of our Favorite Resources and Tools

1. Good Primer Report

2. DOE/EPA Catalog of CHP Technologies

(updated 2014)

http://energy.gov/sites/prod/files/2013/11/f4/chp_clean_energy_solution.pdf http://www.epa.gov/chp/technologies.html

Energy Exchange: Federal Sustainability for the Next Decade

3. Project Profile Database (150+ CHP case studies, searchable by state, sector, technology, etc.)

www.southwestchptap.org/profiles (scroll down)

4. DOE CHP Installation Database(List of all known

CHP systems in U.S.)

https://doe.icfwebservices.com/chpdb/

A Few of our Favorite Resources and Tools (cont’d)

Energy Exchange: Federal Sustainability for the Next Decade

6. Community Energy: Planning, Development, and Delivery

A Few of our Favorite Resources and Tools (cont’d)

5. DOE Database of Incentives & Policies (DSIRE)

www.dsireusa.org

http://www.southwestchptap.org/Data/publications/USCommunityEnergyGuidehi.pdf

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A Few of our Favorite Resources and Tools (cont’d)

7. And of course… Free CHP Screening and Other Technical

Assistance from the CHP TAP

http://energy.gov/eere/amo/chp-technical-assistance-partnerships-chp-taps

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o Contact us or your regional CHP TAP for assistance if you…

– would like a free CHP screening to determine if there is an opportunity for CHP at your site

– already have an existing CHP plant and are interested in expanding it

Next Steps

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Thank You

o Contact info:

o Other contacts:

Christine Brinker, DirectorU.S. DOE Southwest CHP [email protected]

Tom BroderickU.S. DOE Southwest CHP [email protected] southwestCHPTAP.org

•Claudia Tighe, US DOE CHP Deployment  Manager, [email protected], 202-287-1899.  •Claudia Tighe, US DOE CHP Deployment  Manager, [email protected], 202-287-1899. 

Claudia TigheUS DOE CHP Deployment [email protected]