Resilient Energy Systems: District Energy & Microgrids

Brett Pasinella, Senior Manager of Innovative Services

May 24, 2016

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Climate Leadership Commitments

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Climate Leadership Commitments (cont.)

Climate leadership now also having the capacity to respond and adapt •  Carbon neutrality still a transformative component •  Also includes adaptation, preparedness - resilience

Goals for Commitments: •  Continue to provide visible and transformative leadership •  Proactive management of risks and opportunities; limit reactive

response to unanticipated vulnerabilities •  Streamline implementation, demonstrate learning, understand

progress, scale success •  Connect higher education to communities in order to enhance

broader, coherent societal response

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Common Elements

•  Made by Presidents and Chancellors on behalf of institution •  Climate Action Plans include actions to engage all students •  Sustainability Planning & Climate Action Guide

o  Digital, interactive, and linked to further resources

•  One dues structure

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Resilience Commitment

Broad Goal: Increase “ability to survive disruption and to anticipate, adapt, and flourish in the face of change” (definition of resilience) Additional Goals: •  To avoid reactive and expensive decisions or unnecessary emergency

management •  To have diverse and inclusive processes in climate actions •  To enhance the role of higher education in supporting community

cohesion, innovation, smart design •  To contribute to cross-sector knowledge and progress Key concepts of Resilience Commitment •  Increasing adaptive capacity •  Partnership with community •  Assessment, indicators, inclusivity

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Resilient Energy Systems Webinar Series

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1.  Previous: Intro to Resilience & Energy Systems •  Watch recording & download slides:

http://secondnature.org/how-we-connect/webinars/

2.  Current: Resilient Energy Systems: District Energy & Microgrids

3.  Upcoming: Resilient Energy Design: •  Tue, Jun 14, 2016 2:00 PM - 3:00 PM EDT •  Register:

https://attendee.gotowebinar.com/register/3172158490825096964

Malcolm McLellan:

Malcolm McLellan is a partner with the law firm of Van Ness Feldman. He represents a wide array of participants in the electric power industry including owners of power generating facilities, transmission and distribution providers, wholesale power markers, and consumers. Malcolm has an intricate knowledge of the technical, legal, and business considerations facing the electric power industry.

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ResilientEnergySystems:DistrictEnergy,CHPandMicrogrids

MalcolmMcLellan,PartnerVanNessFeldman,LLP

May24,2016

VanNessFeldmanLLP•  Lawfirmthatfocusesonenergyanduseofnaturalresources–  Governmentrela>ons–  Regulatoryandtransac>onal–  PermiBng–  Landuseandrealestate

•  OfficesinWashington,D.C.andSeaJle•  About120professionals

PlanningChecklist

PlanningchecklistforDistrictEnergyandRenewableEnergyProjectsmagazine:

PlanningforDistrictEnergy,CHPandMicrogrids:AChecklistforCampusAdministrators(DistrictEnergyMagazine,1stQuarter2014)

•  Wri:enbymypartnersT.C.RichmondandDavidYaffe

Nomenclature•  DistrictEnergy•  CombinedHeatandPower(CHP)–  ToppingCycle–  BoJomingCycle

•  Microgrids

DistrictEnergy

DistrictEnergyDistrictenergy:•  Isnotanenergysource–  It’sameansofmovingenergy

•  Requiresaccesstoanenergysource–  Ahea>ngorcoolingsource

DistrictEnergySystem

Waterisu>lizedtomoveenergy(intheformofhea>ngorcooling)fromwhereitiscreatedtowhereitisconsumedthroughpipesSource:hJp://www.districtenergy.org/what-is-district-energy/

IdealCondiEonsforDistrictEnergy•  Heatsourceclosertoload– Watercoolswithdistance–  Highdemanddensity–  Aheatsourcethatisunlikelytogoaway

•  Requireswaterpipeinfrastructure–  Easierinnewconstruc>onvs.retro-fit

DistrictEnergyResources•  Interna>onalDistrictEnergyAssocia>on–  hJp://www.districtenergy.org/

•  District-ScaleEnergyPlanning:SmartGrowthImplementa>onAssistancetotheCityofSanFrancisco,U.S.EPA(June2015)–  hJps://www.epa.gov/sites/produc>on/files/2015-06/documents/sf_district_energy_planning.pdf

CombinedHeatandPower(CHP)

Source:hJps://www1.eere.energy.gov/femp/pdfs/fupwg_fall11_valen>ne.pdf

Source:hJps://energycenter.org/self-genera>on-incen>ve-program/business/technologies/chp

IdealCondiEonsforCHP•  Exis>ngheatsourceclosertoload–  BoJomingcycle

•  Desiretobuildagenera>ngresource–  Toppingcycle

CHPResources•  CombinedHeatandPowerTechnicalPoten>alintheUnitedStates,U.S.Dept.ofEnergy(March2016)–  hJp://energy.gov/sites/prod/files/2016/04/f30/CHP%20Technical%20Poten>al%20Study%203-31-2016%20Final.pdf

•  U.S.Dept.ofEnergyCombinedHeatandPowerInstalla>onDatabase–  hJps://doe.icfwebservices.com/chpdb/

•  CombinedHeatandPowerTechnologiesWebinar,U.S.EPA(2015)–  hJps://www.epa.gov/sites/produc>on/files/2015-07/documents/what_is_chp_technologies_and_applica>ons.pdf

Microgrids

DescripEon•  “Amicrogridisagroupofinterconnectedloadsanddistributedenergyresourceswithinclearlydefinedelectricalboundariesthatactsasasinglecontrollableen>tywithrespecttothegrid.”

•  “Amicrogridcanconnectanddisconnectfromthegridtoenableittooperateinbothgrid-connectedorisland-mode.”

Source:hJps://building-microgrid.lbl.gov/microgrid-defini>ons

UniversityofCalifornia-SanDiegoMicrogrid

Source:hJps://building-microgrid.lbl.gov/ucsd

TheUCSDmicrogridprojectsupplieselectricity,hea>ng,andcoolingfora450hectarecampuswithadailypopulaEonof45,000.Itconsistsoftwo13.5MWgasturbines,one3MWsteamturbine,anda1.2MWsolar-cellinstallaEonthattogethersupply85%ofcampuselectricityneeds,95%ofitsheaEng,and95%ofitscooling.

IdealCondiEonsforMicrogrid•  Groupsofbuildings•  Buildingsareoperatedonacommoncircuit(s)•  Energysourceproximatetothegroupingandelectricallyinterconnected

MicrogridResources•  U.SDept.ofEnergy–  hJp://energy.gov/oe/services/technology-development/smart-grid/role-microgrids-helping-advance-na>on-s-energy-system

•  BerkleyLabs–ExampleMicrogrids–  hJps://building-microgrid.lbl.gov/examples-microgrids

TheChecklist

A.WhataretheobjecEvesandprioriEesofyourinsEtuEonthatwillguidedecision-makingonthedistrictenergy/CHP/microgridproject?

•  Combinedheatandpower+districtenergy–  Fuelsavings–  Greenhousegasemissionssavings

•  Microgrid–  Allowscri>calfacili>estoremainopera>onalduringelectricityblackoutsand/ornaturalgassupplyoutage

–  Hedgeforpowerpurchaseexpenses

B.Whatisthecurrentstateofyourcampus’senergyresilienceandgreenhousegasemissions?

•  Assessenergyuseandinefficienciesatexis>ngstructures.

•  Knowthecontextfordecision-makingatyourins>tu>on.–  Shouldyourins>tu>onaJempttoachievereducedornetzeroemissions?

•  Whatisarealis>c>meperiodforachievingthestatedgoal?

C.WhatarethepotenEalsavingsindollars,energy/waterusageandemissionsthatyoucouldachievebyimplemenEngdistrictenergy,CHPand/oramicrogrid?

•  Assesshea>ng/coolingandelectricityusagecharacteris>csofcampusfacili>es–  Determinetheavailability,costanddesirabilityofu>lizingrenewablefuels

–  Assesspoten>alforandsaleofelectricityoutsideofthecampusormicrogrid

CostAnalysisBeware:Costanalysisofinnova>veenergyideasmaybedecep>velycomplicated.•  Whatbenefitsareconsidered?–  Howarethebenefitsdescribed?

•  Howarebenefitsquan>fied?•  Whatisthemethodologyofcomparingthebenefits/coststostatusquo?

PossibleBenefits/Costs•  Avoidedcostofsecondheatsource•  Avoidedcarbonfromsecondheatsource•  Incuracosttobuildandoperatetheheattransfersystem.–  Avoidthecostofbuildingandopera>nginternalhea>ngsystemandpurchasingthefuel

•  What’stheback-upiftheheatsourcegoesaway.–  Howolenwillaccessbeinterruptedincomparisontostatusquo?

D.WhatareyourdesignandengineeringparametersandyourprocessforselecEngdistrictenergy,CHPand/ormicrogridopEons?

•  Conductoutreachtocampuscons>tuenciestoexplainandengageinprojectscoping–  Administra>on,faculty,staff,andstudents–  Specialenergyneeds-researchersandhospitals

•  Conductpreliminaryoutreachtopoten>alvendorsandpartners

E.Doyouhaveadequatespaceoncampusforadistrictenergy/CHPproject?

•  Coordinatewithcampusmasterplanningprocess:–  Iden>fymasterplanamendmentrequirementsand>ming–  Plantoincorporateenergyneedsanddistrictenergy/CHPloca>onsoncampusintocampusmasterplan

•  Iden>fyanynecessaryrealestateacquisi>onorparcelconsolida>on

•  Reviewwaterrightsandavailabilityforprojectandpoten>alimpactsofprojectonlocalwaterresources

F.IsthereanenvironmentalreviewprocesssuchastheNEPAorstateequivalentthatwillguidetheplanningandreviewprocessfortheproject?

•  Beginassemblingthelistsofpoten>alenvironmentalimpactsoftheproject

•  Begintoiden>fybenefits,mi>ga>onmeasuresorcreditsthatcanbeclaimedforthisproject

•  WilldistrictenergysimplifyenvironmentalreviewforindividualbuildingprojectsandcanenvironmentalbenefitsbeclaimedthatwillassistinthepermiBngofthoseprojects?

G.WhataretheapplicablestateandlocalsiEngandzoningrequirementsfortheproject?

•  Dolocalzoningauthori>esencouragedistrictenergy,CHPormicrogrids?

•  Doanylocalcovenantsorlanduserestric>onsadverselyaffecttheproject?

•  Formicrogrids,aretherefranchiserequirementsoflocalu>li>esandwillfacili>escrosspublicstreets?

H.WhatairpermitswillberequiredandwhatistheprocessandEmingforthedistrictenergyproject?

•  Whatpermitwillbetriggeredwhenthereisanewheat/powersource?–  Determinetheperiodofopera>onandemissions

•  Areyoulocatedinanaircontainmentzone?

I.Arethereotherfederal,stateorlocalregulatoryrequirementsfortheproject?

•  Requirementstointerconnectthegenera>ngunitormicrogridtothepowergrid

•  Ifsellingpowerbacktotheu>lity–  QualifyingfacilityunderthePublicU>lityRegulatoryPolicyAct

–  Netmetering

•  Ifsellingpowertoanyoneotherthanyourselfortheu>lity,areyouapublicu>litysubjecttostateretailjurisdic>on?

J.WhatarethefinancingandprocurementopportuniEesandrequirementsfortheproject?

•  Grants•  U>lityprograms•  Bonds•  Leasingorlease/purchase•  Publicprivatepartnerships•  Energysavingsperformancecontracts

ContactinformaJonMalcolmMcLellan,Partnermcm@vnf.com(206)829-1814www.vnf.com

Ques>ons...

Questions?

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