The Future: Flexible, Local &

Resilient Energy Generation

Robert P. Thornton

President & CEO

ResilienCity: the new urban paradigm Sustainable Buildings Canada-Green Building Festival

Toronto, ON October 2, 2014

Agenda

• Introduction to IDEA and District Energy

• Energy Paradigm Shift - Case Example

• Emerging Drivers - Local Energy

• Resilient Energy Systems - Case Examples

• District Energy/Microgrids –

– Policy Trends

– Challenges & Opportunities

• Q&A

• Formed in 1909 – 105 years in 2014

• 501(c)6 industry association

• Approx. 2000+ members in 26 nations

• 56% are end-user systems; majority in North America; growth in Middle East

• Downtown utilities; public/private colleges & universities; healthcare; industry, etc.

District Energy/Microgrid –

Community Scale Energy Solution

• Underground network of pipes “combines” heating and cooling requirements of multiple buildings

• Creates a “market” for valuable thermal energy

• Aggregated thermal loads creates scale to apply fuels, technologies not feasible on single-building basis

• Fuel flexibility improves energy security, local economy

Infrastructure for Local

Clean Energy Economy

• Connects thermal energy sources with users• Urban infrastructure – hidden community asset• Robust and reliable utility services• Energy dollars re-circulate in local economy

District Energy Industry Growth

(Million sq ft customer bldg space connected/committed)

Aggregate SF reported since 1990 – 572,853,166 SF(Annual average 23.8 Million SF/Yr – North America)

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“For the average coal plant, only 32% of the energy is converted to

electricity; the rest is lost as heat.”

-Page VI, Executive Summary

Efficiency of US Power Generation

Power Engineering Magazine, November 2009

Brayton Point Power Station, Somerset, MA – 1,537 MWPre-2011: Once-through cooling – Taunton River:Mount Hope Bay

Brayton Point Cooling Towers – $570 Million in 2011

Total environmental compliance $1.1 billion since 2005.

Somerset power plant put up for sale Boston Globe, Sept 7, 2012

Dominion Loss on Write-Downs; Core Improves… WSJ, Jan 31, 2013

Energy company Dominion Resources posts 4Q loss –The Virginian Pilot, Jan 31, 2013

Brayton Point Power Station Closing: Massachusetts Coal-Fired Plant Shutting Down In 2017 – Providence Journal, Oct 8, 2013

Combined Heat & Power

AVEDORE 1 | 2

90+%

Illustration, copyright AEI / Affiliated Engineers, Inc.

Paradigm Shift

• lower cost natural gas impacting coal plants

In U.S., during the first half of 2012: • 165 new electric power generators installed • Totaling 8,100 megawatts (MW) new capacity• Of 165, 105 of those units under 25 MW and• Mostly renewable - solar, wind or landfill gas• Other factors - environmental compliance costs; poor load factor; low wholesale power costs and cheap natural gas

Illustration, copyright AEI / Affiliated Engineers, Inc.

Future Proofing A More Resilient City

GLOBAL

POPULATION

INCREASE

7B TODAY

UP TO 10B 2050

URBANIZATION

70%-80% OF

POPULATION

2050

EXTREME WEATHER SOURCE: WORLDWATCH INSTITUTE (MUNICH RE)

820 mi diameter

Double the landfall size of

Isaac + Irene combined

Affected 21 states

(as far west as Michigan)

106 fatalities

SUPERSTORM SANDY:

BY THE NUMBERS

8,100,000 homes lost power

57,000 utility workers from 30

states & Canada assisted Con

Edison in restoring power

Total estimated cost to date

$71 billion+ (dni lost business)

INCREASING RESILIENCE WITH

LOCAL DISTRICT ENERGY/CHP

SYSTEMS

South Oaks Hospital

(Long Island, NY) – 1.3 MW CHP

Hartford Hospital/Hartford Steam

(CT) – 14.9 MW CHP

Bergen County Utilities Wastewater

(Little Ferry, NJ) - 2.8 MW CHP

Nassau Energy Corp. District Energy

(Long Island, NY) – 57 MW CHP

THE COLLEGE

OF NEW JERSEY

5.2 MW DE/CHP

“Combined heat and power

allowed our central plant to

operate in island mode without

compromising our power supply.”

Lori Winyard, Director, Energy and

Central Facilities at TCNJ

FAIRFIELD

UNIVERSITY

CONNETICUT

4.6 MW DE/CHP

98% of the Town of Fairfield lost

power, university only lost power

for a brief period at storm’s peak

University buildings served as

“area of refuge” for off-campus

students

CO-OP CITY

THE BRONXNEW YORK CITY

45 MW DE/CHP

“City within a city”

60,000 residents, 330 acres, 14,000+

apartments, 35 high rise buildings

One of the largest housing

cooperatives in the world; 10th largest

“city” in New York State

40 MW Cogen plant maintained heat

and power throughout Sandy – back

fed Con Edison grid

PRINCETON

UNIVERSITY

15 MW District Energy

CHP

STORM-TESTED

+PROVEN ANNUALLY

CHP/district energy plant supplies all

heat, hot water, air conditioning, and

half of the electricity to campus of

12,000 students/faculty

"We designed it so the electrical

system for the campus could become

its own island in an emergency. It cost

more to do that. But I'm sure glad we

did.“

Ted Borer, Energy Manager, Princeton

October 2011

Hurricane Irene

October 2012

Hurricane Sandy

Lights. Stayed. On.

Production Capacity & Peak Demands

Princeton University

• Electricity Rating Peak Demand

– (1) Gas Turbine Generator 15 MW 27 MW

• Steam Generation

– (1) Heat Recovery Boiler 180,000 #/hr

– (2) Auxiliary Boilers 300,000#/hr 240,000 #/hr

• Chilled Water Plant

– (3) Steam-Driven Chillers 10,100 Tons

– (3) Electric Chillers 5,700 Tons 11,800 Tons

– (8) CHW Distribution Pumps 23,000 GPM 21,000 GPM

• Thermal Storage

– (2) Electric Chillers 5,000 Tons

– (1) Thermal Storage Tank 40,000 Ton-hours

• *peak discharge 10,000 tons (peak)

– (4) CHW Distribution Pumps 10,000 GPM

• Solar PV Farm 5.4 MWe

16,500 panels

11 hectares

Economic Dispatch System

Economic

Dispatch

System

PJM Electric Price

NYMEX gas, diesel,

biodiesel prices

Current Campus

Loads

Weather Prediction

Production

Equipment

Efficiency &

Availability

“Business Rules”

Historical Data

Generate/Buy/Mix

Preferred Chiller &

Boiler Selections

Preferred Fuel

Selections

ICAP & Transmission

Warnings

Operating Display

Historical Trends

Live feedback

to Icetec

Operator

Action

Biodiesel REC value

& CO2 value

GT Inlet Cooling Mode

How Much More Efficient isCombined Heat & Power?

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rato

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mp

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ffic

ien

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Generator Power Output, MW

Gas Turbine Simple-Cycle EfficiencyOct 1, 2013 - Feb 14, 2014

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HRSG Steam Flow, M#/Hour

Cogeneration System Total EfficiencyOct 1, 2013 - Feb 14, 2014

Princeton CHP/District Cooling Reduces

Peak Demand on Local Grid

Princeton Demand

Grid demand

Princeton University PV Farm – Aug, 2012

16,500 PV panels generate up to

327 Watts each at 54.7 Volts DC

Princeton University 5.4 MW Solar Farm

Princeton University Microgrid

Benefit to Local Grid

During August peak: 100+ deg F; 80% RH

• 2005 campus peak demand on grid 27 MW• Implemented advance control scheme

• 2006 campus peak demand on grid 2 MW

• Microgrid “freed up” 25 MW to local grid

– reduces peak load on local wires

– avoids brownouts

– enhances reliability

– supports local economy

MICROGRIDS:

LOCAL, RESILIENT AND

CLEAN ENERGY

INFRASTRUCTURE

District Energy/CHP/Microgrid

Emerging Drivers

• Growing demand for greater grid reliability and resiliency

• Choice to deploy clean energy sources to help compete for high quality employers, factories, tenants

• Desire to expand local tax base & replace remote coal generation

• Flexibility to tap local energy supplies to improve trade balance & drive economic multiplier

• Cutting GHG emissions and addressing climate adaptation

• Local infrastructure advantages in extreme weather events

What is a District Energy/Microgrid?

• Local “distributed” generation integrating CHP; thermal energy; electricity generation; thermal storage and renewables

• Located near load centers; customer density; often some mission-critical needs

• Robust, economic assets; 24/7/365

• CHP interconnected with regional & local grid

• Able to “island” in the event of grid failure

Microgrid Resources Also Provide

• Diversity of generating locations– Reduced risk associated with transmission and

distribution failures

• Diversity of fuel sources

• Capacity, planned for local, critical loads

• Thermal energy for district heating, cooling

• Redundancy in case of grid failures– Small, localized failures instead of regional failures

• Voltage stability

• Frequency stability

• Wave form stability

Simple Microgrid Concept

Central Utility Power Station

KWH

Utility Meter

Synchronizing Isolation Breaker

Local Generator

Local Power

Demands

KWH

Utility Meter

Isolation Breaker Local

Power Demands

Microgrid Options

Central Utility Power Station

KWH

Utility Meter

GT, Diesel, Micro-turbine

reciprocating gas engine, solar PV, wind, micro-hydro…

Battery or flywheel

Economic Dispatch

Synchronizing Isolation Breaker

Microgrids Add Grid Reliability

Central Utility Power Station

KWH

Utility Meter

Synchronizing Isolation Breaker

Local Generator

KWH

Utility Meter

Isolation Breaker

KWH

Utility Meter

Local Generator

KWH

Utility Meter

Synchronizing Isolation Breaker

Local Generator

Synchronizing Isolation Breaker

Why Build A Microgrid?

• Benefits for the Owner

– Enhanced Reliability and Resiliency

– Cost Reduction

– Environmental

• Benefits for the ISO

– Reduction in LMP Cost

– Increase Capacity Supply

– Reduction in Transmission Needs

– Reduction in Marginal Losses

– Rapid Frequency Regulation

– Spinning Reserve

Why Build A Microgrid?

• Benefits to the Local Economy – Enhanced Reliability/Resiliency – Reduce business

interruption risk

– Areas of Refuge for Citizens/First Responder Support

– Power for Local Critical Infrastructure • Hospitals, Gas Stations, Police & Fire, Waste Water

Treatment Plants

• Benefits to Local Electric Distribution Utility– Reduced Peak Load

• Problems for Local Electric Distribution Utility– Loss of Revenue

– Interconnection Issues

Multi-Building Microgrids

• Microgrids not recognized as a unique class of grid resources

• They are under-utilized and under-compensated for– Providing energy and auxiliary services– Contributing to reliability and availability– Ability to quickly balance intermittent renewables

• They face state regulatory hurdles including:– Limits on servicing multiple customers– Limits on serving multiple properties of the same

customer– Limits on partnering with third party developers

• The current utility business model provides disincentives to customer efficiency and flexibility

• Currently, MUSH market represents “best in class”

MICROGRIDS:

ENHANCED

EFFICIENCY

DE/CHP Microgrid Best Practices

• Fully integrated load monitoring, forecasting

• Parallel operation with real time price signals and optimization strategies (make/buy)

• Ancillary services to grid – capacity; VAR support

• Integrate thermal energy for optimal efficiency

• Chilled water thermal storage enhances grid relief; operating flexibility; cost avoidance

• Fuel purchasing and flexibility strategies

• Customer optimization; efficiency support

Emerging Policy Trends

• States and Cities acting on microgrid deployment

– New York State - $40 M microgrid program

– Connecticut - 1st phase $20 M; 2nd phase $20 M

– New Jersey - $30 M microgrid deployment

– Massachusetts - $32 M financing

• City of Boston developing Microgrid Regulatory Strategy

• US DOE Technical Application Centers (TAPs) supporting deployment nationally

• National advocacy groups forming to improve market access for microgrids (MRC)

United Nations Environment Program

District Energy in Cities Initiative

• Launched 9/22 United Nations Climate Summit, UN General Assembly, New York

• UN Sustainable Energy for All (SE4All) Global Energy Efficiency Initiatives - District Energy Accelerator

• Deploy district heating/cooling in cities to increase energy efficiency, cut emissions

• Mentor, share, pair – best practices

'Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it's the only thing that ever has.'

Margaret Mead

Rob Thornton rob.idea@districtenergy.org

You’re invited…

Please visit www.decanada.ca