mCHP in North America
Promise, Progress & Obstacles
Dr. Samuel BernsteinSpecial Assistant to the ChairmanNational Grid, US
Presentation at the
GAS INDUSTRY MICRO CHP WORKSHOP
PARIS, FRANCE 29 & 30 MAY, 2008
Outline
•Why mCHP?•Technology evaluation and demonstration•The obstacles to mCHP•Conclusions
The views expressed in this presentation are these of the author only and do not reflect National Grid policy
mCHP advantage in the NE of USA
Climate Change OptionRegional Greenhouse Gas Initiative, (RGGI)
(Cap and Trade Program including NY, NH MA & RI)New York
City - 30% reduction by 2030 State - 15% reduction by 2015
Massachusetts – “Lead by Example“ Program (through 2080)
Energy Efficiency Option Active Rebate Programs in MA, NH & NYCost to Benefit Metric (Based on Reduced Gas Consumption)
Offer an alternative to use of Oil & Electricity
Issues Favoring Distributed Generation in the US
Environment & Global WarmingIncreased EfficiencyLEED Points (at least 3 pts under
EAc1) Rate of Increase in Energy Costs Massachusetts sell-back provisions
Net Metering & InterconnectBeing Actively Sought in NY & RI
Local Electric Distribution LimitsHigh Cost (especially Urban
Areas)Demand reduction programsConcerns over EMF Radiation
Difficulties Siting New Power PlantsCommunity OppositionEnvironmental Concerns
(Air Emissions, Thermal Discharge)
Why do customers want ‘on-site’ generation?
1. No Worries About Outages/Blackouts
2. Save Money on Energy Bills3. Independence From Electric
Utility4. Greater Predictability of Energy
Costs5. Help the Environment6. Home Office Needs7. Medical Equipment Needs
Consultant Consultant SurveySurvey
As a key energy utility, National Grid is leading Climate and Energy Efficiency Programs in North America
Largest energy distribution in the US Northeast
Customers: 4.5 Million Electric** 3.3 Million Gas
Service mix
Turn over ~ £ 11.5 Billion *
* Does not include the commodity in the UK
** Includes 1.1 Million customers of the Long Island Power Authority
Possible Advantage of mCHP to the utility service
TYPICAL SEASONAL VARIATION OFNATURAL GAS & ELECTRICITY ENERGY USE
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Increased Overall Efficiency Potential for Customer Savings
Environmental Benefits To be verified....
Potential for Electric Grid Support Increase in Summer Gas Load
mCHP Technology options in North America
IC engines: Climate Energy / Honda (1 -1.2 kw)
Stirling Engines: (pre-com) Disenco (3kw)
Fuel Cells: (development) PEM and Advanced PEM: Plug- Power, Vaillant, Pemeas (3-5kw), Clear Edge Power (5kw)
Field Evaluation of mCHP:
Beta Unit Testing: 19 sites in Eastern Massachusetts 2006/07
Sample data Totals for the heating season:
Run Time: 3,968 hours; gas usage 732 Therms
Auxiliary Furnace Run Time: 450 hours; gas usage 360 Therms
Total Gas Usage: 1092 Therms
Electrical Generation: 3,968 kwh Total Combined Heat Generated: 884 Therms
Fraction of Total Annual Heat Delivered by the mCHP: 62% Total Combined Annual Efficiency: 93% Energy Cost: $1,747 Combined heat and Electric Energy Cost Savings: $756 Reduction in CO2 Produced: 5,111 lbs. (2.5 tons)
Current technology projects at IC (1/2)
• Evaluation of mCHP market and market barriers in NY
• 5 units test program (Climate Energy)• Joint project with
Current technology projects IC (2/2)
Next generation mCHP unit for North America Hot water capability Back-up power capability
40+ unit demonstration (NE US & Canada) Joint project with
Performed with
Current technology projects: Fuel Cells
Advanced high temperature PEM fuel cell demonstration
Joint project with
Project performed with
Issues Stifling Distributed Generation Electric Grid Connection
High cost (relay protection) Reactive power limits/costs Onerous approval processes
Customized application review Insurance & liability Site (not product) certifications
Electric standby-rates (One outage more than eliminates savings)
High Cost Equipment (Up to $4,000 per kW + Installation)
Poor Performance of Some Systems Reliability (Maintenance Interval & MBTF < 1 year) Emissions (excessive CO or NOX)
Fuel Price Volatility
Regulatory Progress Electric Grid Connection
Most States have published Standard Interconnect Requirements (SIRs), (limited to 300 kVA in NY)
IEEE 1547 type testing of grid protection devices universally recognized & UL Standard for Inverters – UIL 1741
Special Gas Utility Rates for CHP for all size customers New Emissions standards (California & proposed for NY) Net Metering
Allows customer payback at rate paid for electricity (2-3 times avoided cost previously paid for)
Most states allow only for renewable but considering for all CHP. Micro-turbines (Concern over on-board gas compressor)
“New Standard for Safe Use and Installation of Energy-Efficient Microturbine Systems will enable Owners to Participate in PlaNYC Goal of Increasing Clean Power Generation” Mayor Bloomberg
Public Utility Commissions Investigating Disincentives to CHP in NY & MA
Electric & Gas Utility Financial De-coupling
Active Discussion on Ways to Finance Distributed Generation Government incentives
Federal & local Rate-based Gas utility incentives
Transfer avoided cost from electric wires company to customer purchasing equipment
Rate Design Offer electric load
management rebates Emissions reduction credits
NOX & SOX (aggregate) Greenhouse gases
Share customer savings or energy sales model
Conclusions
CHP has Tremendous Potential in All Sizes mCHP Making Progress in US Economic Obstacles Remain International Cooperation can help in identifying
best solution Lower costs
Economies of scale Innovation Code harmonization
