Smart Grid Division Distributed Generation in a Smart Grid · © Siemens AG 2013 All rights...

© Siemens AG 2013 All rights reserved.

Distributed Generation in a Smart

Grid Ken Geisler

Vice President, Strategy NAM

Smart Grid Division

Infrastructure & Cities Sector

Siemens Industry, Inc.

Smart Grid Division


From centralized, unidirectional grid …

Unidirectional Power Flow Bidirectional Power Flow

… to distributed energy and bidirectional energy balancing

Offshore Wind Parks

Large Scale

PV Plant

Small Industrial

Gas Turbine

Biogas CHP Diesel Generator

Storage

Solutions

Electrical

Vehicles

Private Solar

Smart Street

Lighting

Hydrogen Storage

Storage

Solutions Pumped Storage

Power Plant

Distributed Generation driving changes in grid design


Balancing

generation &

demand, new

business models

Efficient

generation,

transmission,

distri-bution &

consumption

Full transparency

on distribution

level /

aut. loss

prevention

Renewable and

distributed

generation

Limited generation

and grid capacity

Aging and/or weak

infrastructure

Cost and

emissions of

energy supply

Revenue losses,

e.g. non-technical

losses

Load management

& peak avoidance

Reliability through

automatic outage

pre-vention &

restoration

Ch

all

en

ges

S

olu

tio

ns

Current challenges provide significant opportunity…


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Customer Care

Management

Residential Industrial Commercial

Intelligent Field Devices

(i.e. Meters)

Building, Home, Distributed

Energy Management Systems

Residential

Batteries Solar

Industrial

Wind

Commercial

Planning and Asset

Optimization PAO

Control Center

EMS/DMS/OMS DERM/DRM MDMS/AMI

Smart-SubstationTM

Controller

Energy Balancing &

Demand Response Consumer Information

Management

DER

Controllable Equipment

Recloser Switch Capacitor Bank

Market Systems

Interface MMS CRMS

Balancing of Resource

Capacity for Reliability and

Economics

Integrated Distributed Resources

Grid Reliability and

Resilience

Grid Modernization

Bi-Directional Management

of Customer Energy

Information

Informed Consumption

Integration of Distributed Generation into Grid Solutions


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Resilience Plan

Apply resilience planning as a guiding principle for future infrastructure investments (“Inside-out”

distributed design)

Resilience built on Reliability and Sustainability

Develop a strategy for prioritizing necessary upgrades, investing in new generation assets and allowing

the electrical delivery grid to fail in predictable layers of demand priority

Energy District Structure

Level 3:Self-healing

zones of reliability

Level 2: Districts of

partial sustainability

Level 1: Critical

infrastructure -

Resilient Microgrid

Level 4: Utility

Service Area

Designing distributed generation solutions for resilience…


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The imminent topic of resilience… The number of natural disasters is increasing


Resilience Revealed by Hurricane Sandy

Co-Op City, Bronx, NYC

14,000 apartments

35 high-rise buildings

40MW steam turbine

generator, plus CHP

Operates on a micro grid

Retained power for 60,000

residents


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Distributed Generation Landscape

Technology List Average Capacity for Building/

Community

Biomass – Dairy or Swine Manure

Biomass – Advanced Digester (Food Industry – Biogas Application)

Biomass – Landfill Gas (LFG)

Biomass – Waste Water Treatment Plant (WWTP)

550 kW electric

Up to 2,000 kW electric

5,000 kW electric (5MW)

Geothermal

Geothermal – Heat Pumps 150 tons cooling

Hydropower

Hydro – In Conduit 1100 kW electric

Solar

Solar – Photovoltaic Residential Fixed Tilt

Solar – Photovoltaic Commercial Fixed Tilt

Solar – Photovoltaic Ground Based Tracking

Solar – Integrated Space and Water Heating

Solar – Residential Water Heating

5.3 kW electric

138 kW electric

1500 kW electric

4.4 kW thermal

116 therms/year

Wind

Wind – Community Scale 5,000 kW (5MW)

Source: KEMA 2009 Cost of Generation Study for the California Energy Commission


What is cogeneration/CHP?

The most effective and efficient form of power generation.

The process where single fuel source, such as natural gas, is used to produce

both electrical and thermal energy. Source: http://www.futureworldenergyinc.com/products/cogeneration/ http://energensolutions.com.au/cogeneration/ http://www.uschpa.org/i4a/pages/index.cfm?pageid=1

http://www.futureworldenergyinc.com/products/cogeneration/

http://energensolutions.com.au/cogeneration/

http://www.uschpa.org/i4a/pages/index.cfm?pageid=1


The typical U.S. power plant is only about 33% efficient, using

three units of fuel to produce one unit of electricity.

The rest gets turned into waste energy, mainly heat that's vented

into the atmosphere. Most plants can't recycle this heat because

they're located remotely, far from consumers, and heat cannot

travel far before turning cold.

This kind of energy production—called "central" generation—is

the dominant way of making power in the U.S.

CHP turns these numbers on their head, providing what the U.S.

EPA calls "an efficient, clean, and reliable approach to generating

electricity and heat energy from a single fuel source."

The key is that cogeneration plants generate energy on site at the

facility. That enables these facilities to recycle their waste heat

into clean electricity and useful steam, which can be used to warm

nearby buildings or to assist various industrial processes

Conventional Central Generation vs. CHP

CHP plant on-site

Heat recovery boiler

33%

Delivered

Electricity

40%

Thermal

Energy

Excess heat is recycled at a CHP plant (on-site at manufacturers or

other large institutions) through a heat recovery boiler. The

process recaptures about half the waste energy as thermal energy.

As a result, 73 units of usable energy are available.

Combined Heat and Power (Cogeneration)

average efficiency 73%

100%

fuel

27% waste heat

For every 100 units of fuel, approximately 67 units are released as

waste heat. About 3 more units are abandoned through

transmission line losses. As a result, only 30 units of power are

actually delivered to the customer.

30%

Delivered

Electricity

3% Line losses

Conventional Central Generation

average efficiency 30%

100%

fuel

67% waste heat

Power plant

Central CHP

Source: http://www.recycled-energy.com/main/combined_heat_power.html


How Does CHP Generation Work?

Fossil fuel such as oil,

coal or natural gas is

burned in a furnace to

release heat energy.

Heat is used to boil water

and make steam.

Steam drives the turbine,

turbine drives the

generator, the generator

makes electricity.

The exhaust heat is

captured in the

cogeneration equipment

and is used to supply hot

water, steam or space

heating.

Source: http://intelligenpower.com/whatiscogen.htm

http://intelligenpower.com/whatiscogen.htm


What are the benefits of cogeneration?

Source: December 2004: by Director John Herbert

Energy Savings Environmental

Uses fuel more efficiently, more watts per

dollar

Reduces pollution

Offers energy savings ranging between 15

40% when compared against the supply of

electricity and heat from conventional

power stations

Lowers emissions to the environment, in

particular CO2, the main greenhouse gas

by

30–50%

Provides lower transmission losses (since

it is located in close proximity of campus /

building)

Generated power is used by an individual

facility

Cogen plants are generally built closer to

populated areas, which requires them to

be held to higher environmental standards

© Siemens AG 2013 All rights reserved. Source:http://www.cogeneration.org/111011Conf/Presentations/Haefke.pdf

40

50

60

70

80

90

100

1999

2001

1997

2009

1995

2003

2007

2005

2010

2008

2006

2004

2002

2000

1998

1996

Cu

mu

lati

ve C

ap

acit

y

Ad

dit

ion

s (

GW

)

Capacity Additions 1995 to Present

Over 35 GW of New CHP Capacity Has Been

Installed Since 1995

© Siemens AG 2013 All rights reserved. Source: http://www.electricchoice.com/electricity-prices-by-state.php

Price of Electricity is on the Rise, CHP Potential is

Climbing

Economy will improve – more demand

for electricity

Environmental regulations will become

more stringent, forcing power plants to

invest in pollution reduction

technology, passing cost to end

consumer.

Technology is improving

Regulation

Carbon Reduction

Economic development

Government support increasing

Low natural gas price with big

abundance in the US

Electricity rates are increasing

Economic factors affecting CHP


Airport

Light Industrial Higher Ed

Stadium Hospital

K-12

Application Areas


Application Areas

Definition: A system for distributing heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating. The heat is often obtained from a cogeneration plant burning fossil fuels but increasingly biomass, although heat-only boiler stations, geothermal heating and central solar heating are also used, as well as nuclear power.

Examples of heating / cooling districts: NYC steam system - largest

commercial district heating system in the U.S.

Denver's district steam system is the oldest continuously operated commercial district heating system in the world. It began service November 5, 1880

Seattle steam company operates a district system in Seattle

Prisons

Energy Districts Multi-family housing

Military Bases

http://en.wikipedia.org/wiki/Space_heating

http://en.wikipedia.org/wiki/Water_heating

http://en.wikipedia.org/wiki/Cogeneration

http://en.wikipedia.org/wiki/Biomass

http://en.wikipedia.org/wiki/Heat-only_boiler_station



http://en.wikipedia.org/wiki/Geothermal_heating

http://en.wikipedia.org/wiki/Central_solar_heating

http://en.wikipedia.org/wiki/Central_solar_heating

http://en.wikipedia.org/wiki/Nuclear_power


Steam Turbines

Steam turbines for power generation,

combined heat & power and mechanical

drives for all industrial applications

Various design paradigms including:

• Pre–designed steam turbines up to 10 MW

• Industrial steam turbines up to 250 MW

Gas Turbines

Gas turbines for power generation,

combined heat & power and mechanical

drives for all industrial applications.

Small gas turbines from 5 up to 15 MW

Medium gas turbines from 18.5 up to 50 MW

Siemens: Industrial Turbines for all Your Needs


Background:

SRS, a nuclear reservation, built during the 1950s to refine

nuclear materials for deployment in nuclear weapons, was

experiencing challenges maintaining their 1950’s – vintage

boilers, and at the same time, meeting the requirements of

the Clean Air Act and other mandated improvements in

energy and increased use of renewable energy. SRS is

owned by DOE.

Replaced:

coal and oil-fired generation by incorporating a

biomass-fueled steam cogeneration plant and two smaller

biomass-fueled plants

Key benefits of project:

Annual energy reduction

Support of the S. Carolina Biomass Council Goals

Decrease of water intake from Savannah River,

supporting water conservation efforts in the region

Reduced its carbon footprint into the environment.

Government’s largest biomass – fueled cogeneration

facility in the country

Source: http://www.ameresco.com/sites/default/files/cs_savriver_v5.pdf

Location Aiken, South Carolina

Facility Size More than 300 sq. miles

Installation Costs $795 million

Annual Energy

Savings

$34.3 million – 1st year

Project date May 2009 – Dec 2011

Supplier Ameresco

Contract Duration 19 years

http://www.renewableenergyworld.com/rea/news/article/2012/02/excellence-in-renewable-energy-awards-winners-project-of-the-year-and-readers-choice?page=5

Example Project: CHP Savannah River Site, in Aiken, SC

(largest energy efficient project in nation’s history)

http://www.ameresco.com/sites/default/files/cs_savriver_v5.pdf


Background:

The heavily co-funded project included

sponsorship by the Museum, the US DOE, the Gas

Technology Institute (GTI), and both the City of

Chicago, and the State of Illinois.

GTI served as the US DOE project manager and Ballard

Engineering (Rockford, IL) was selected as the design and

installation engineering firm.

Outcome:

The system is located on the second floor of the museum

in a partitioned area adjacent to an existing exhibit space.

Plans include incorporating the CHP system as part of an

exhibit on distributed generation

Equipment Cost $1,723,125

Annual Energy

Cost Savings

Approx. $200,000

Simple Payback Est: 8.6 Years

Fuel Use Efficiency 60.5% (38.3% electric; 22.2% thermal)

System Online February 2003

Supplier Ballard Engineering

http://www.midwestcleanenergy.org/profiles/ProjectProfiles/MuseumScienceIndustry.pdf

Example Project: CHP in Chicago –

Museum of Science & Industry


Example Project: CHP at Naval

Stations in Great Lakes, IL

1) Economics exclude 1993 installation of back pressure steam turbines. http://www.midwestcleanenergy.org/profiles/ProjectProfiles/GreatLakesNaval.pdf

Location Great Lakes, Illinois

Campus Size 278 buildings

10.9 million SF of occupied space

Installation Costs $34,110,9091)

Annual Savings $3.5 million1)

Began Operation Summer 2005

Supplier Ameresco

Background:

Facilities were aging and Energy Policy Act (EPACT)

mandated reduction in energy consumption in all

federal facilities

NSGL was confronted with expanded responsibilities

and shrinking budgets

Ameresco along with the Naval Facilities Engineering

Command, developed a long term plan to upgrade and

modernize the NSGL facilities utilizing third party

financing.

A three-step plan was developed and implemented to

repair / refurbish / upgrade buildings, upgrade the

distribution systems, and improve the existing central

plant with CHP.

The major challenges to implementing the plant

upgrades via a CHP system included:

Upgrading the central plant without disrupting

on-going operations

Operating the naval base independent of the

utility grid

Complying with new federal regulations without

adequate appropriations


Example Project: CHP at Evanston Township

High School in Evanston, IL

Facility Size 10 Buildings (1.3 Million sq. ft.)

CHP Equipment installed

(3) 800 kW Caterpillar Model 3516

Natural Gas Engine Generators

(3) Maxim Exhaust Heat Recovery Silencer Units

(4) York 520-ton Single-Stage Steam-Fired Absorption Chillers

Generating Capacity

2.4 MW

Heat Recovery 3,600 lb/hr of 110 psig steam

Installation Date October 1992

Installed Cost $1.5 Million

Simple Payback 4.2 Years

Current Annual Energy Savings

$354,000

Supplier Unable to locate

Background:

In the early 1990’s, when the school began looking for

ways to lower energy costs, ETHS discovered that the

combination of a central boiler plant and central absorption

cooling system made it an excellent candidate for a CHP

system.

(CHP) system of Evanston Township High School (ETHS)

supplies 2.4 megawatts of electricity and 110 psig steam to

the 10 contiguous buildings located on the 65 acre

campus. The CHP system operates three 800 kW

Caterpillar Model 3516 Natural Gas Engine Generators

with three Maxim exhaust heat recovery silencers that

recover 1,200 lb/hr each of 100 – 110 psig steam when

operating at full load. The steam is utilized to provide

building heat, domestic hot water and absorption cooling to

the campus.

http://www.midwestcleanenergy.org/profiles/ProjectProfiles/EvanstonTownshipHS.pdf


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Micro Grid New York University Natural Gas CHP, USA

Combined Heat and Power Plant ordinarily

provides efficient energy for the university, but is

also connected to the grid

When Sandy knocked out the city’s power, the

plant switched to micro-grid operation

Larger buildings and core campus received

continued supply through the storm and the

following weeks

Rest of neighborhood in darkness

Additional benefits: 23% CO2 reduction, utility

savings of $5-8m per year.


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Virtual Power Plant Munich, Germany

Initiative of Munich City Utilities & Siemens

Small-scale, distributed energy sources pooled &

operated as single installation

Improves reliability of planning & forecasting

decentralized sources

Promotes efficient use of decentralized energy, &

greater diversity of sources

Enables decentralized sources to operate flexibly

either as a single unit, or in island-mode to serve a

more localized network

Includes cogeneration modules (8MW),

hydropower & wind farm (12MW)

Distributed Energy Management System


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Siemens offers a broad range of energy efficient

and sustainable solutions

Power Distribution

Renewable Power

Generation

Fossil Power Generation

Lighting (Osram) Solutions for

Industry

Building Technologies

Power Transmission

Environmental Technologies

Mobility

IT Solutions and Services

Healthcare


Thank you for your attention

Ken Geisler

Vice President, Strategy NAM

Smart Grid Division

Infrastructure & Cities Sector

Siemens Industry, Inc

E-mail:

[email protected]

Answers for infrastructure and cities.

mailto:[email protected]

Smart Grid Division Distributed Generation in a Smart Grid · © Siemens AG 2013 All rights...

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