Distributed Energy Coalition - Environmental and Energy ... · 6. Reduced system vulnerability 7....
33
Energy Reliability Energy Security Energy Efficiency Environmental Stewardship Economic Development Distributed Energy Coalition
Transcript of Distributed Energy Coalition - Environmental and Energy ... · 6. Reduced system vulnerability 7....
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,
modular technology
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
structure
The Benefits ofDistributed Energy are:
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-wire supply5. Short lead-time, off-the-shelf,
modular technology
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
structure
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
• The power stayed on with DE…
– 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
• The power stayed on with DE…
– 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.
The Benefits ofDistributed Energy are:
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
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
structure
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.
The Benefits ofDistributed Energy are:
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-Wire Growth5. Short lead-time, off-the-shelf,
modular technology
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
structure
Energy Efficiency
America’s electric grid efficiency has stagnated at about 32% efficiency
20%
22%
24%
26%
28%
30%
32%
34%
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
Grid
BOILER
CHP
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
Grid
BOILER
CHP
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.
The Benefits ofDistributed Energy are:
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-Wire Growth5. Short lead-time, off-the-shelf,
modular technology
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
structure
Distributed Energy Costs Less
The cost of meeting the need for new power in the U.S. in 2020:
0
100
200
300
400
500
600
700
800
900
6.00% 8% 10% 15% 20% 25% 30% 35% 39.38%
% DG of Total US Generation
$ B
illio
ns
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.
The Benefits ofDistributed Energy are:
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-Wire Growth5. Short lead-time, off-the-shelf,
modular technology
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
structure
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
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
structure
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-wire supply5. Short lead-time, off-the-shelf,
modular technology
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
Only FOUR of the Twenty Benefits Accrue to the User
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-wire supply5. Short lead-time, off-the-shelf,
modular technology
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
structure
The Others are PUBLIC Benefits…
Energy Reliability1. Improved power quality2. Business continuity3. Reduced grid congestion4. End-of-the-Wire Growth5. Short lead-time, off-the-shelf,
modular technology
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
structure
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.
