Integrated

Energy

Combined Heat & Power

(Making a Comeback)

Combined Heat & Power The Basics

Bob Albertini
Pepco Energy Services
August 11, 2015
Phoenix Convention Center Phoenix,

Combined Heat & Power

Overview
Overview

Basic concept
Typical
configuration &
components

Benefits
Characteristics of
a good
opportunity
Market drivers
Case studies
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CHP Overview Distributed

Generation
Distributed Generation:
An electric generator;
Located at-or-near the end user;
Generates at least a portion of the electric
load

Typical DG Technologies:
Engine Generators
Turbine Generators
Solar Photovoltaic
Wind Turbine
Fuel Cells
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CHP Basic Concept

CHP is:
A specific type of Distributed Generation
The simultaneous production of electricity and heat from a
single fuel source
An integrated energy system (not a single technology) that
can be modified depending upon the needs of the energy end
user
Highly efficient
CHP:
70% to 80%
Separate Elec. &
Thermal
40% - 50%

Can use various

Fuels:
Natural Gas
Landfill/Biogas
Biomass
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CHP Typical
Configuration
Use fuel to first Generate Power, then
Capture resulting heat for use as:
Heating
Cooling
Both

Thermall
y
Activate
d
Machine

Prime
Mover
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CHP Typical Components

Prime Movers

(Converts fuel input to mechanical shaft power)

Reciprocating Internal Combustion (IC) Engine

Combustion Turbine
IC Engine
Steam Turbine
Microturbine

Microturbine

Electrical Equipment

Generator (Converts mechanical shaft power to electrical energy)Combustion Turbine

Step-up transformer & grid interconnection gear

Heat Recovery Equipment

Heat recovery steam generator (HRSG)

Thermally Activated Machine/Thermal Load

Transformer

Energy transfer stations/air handling units

Process Heat
Economizer
Absorption or steam driven chillers HRSG

Absorption Chiller

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CHP Typical Components Prime

Movers
Reciprocatin
g
IC Engine
Gen.

Steam
Turbine

MicroTurbin
e

Fast Start up
Hi part load
efficiency
Island mode
capable
Operates on low
pressure gas

High Reliability
Low Emissions
High-grade Heat
No cooling
required

High overall
efficiency
Any fuel type
Long working
life
High reliability

Small # of
moving parts
Compact size &
wt.
Low emissions
No cooling
required

Disadvantage
s

High maintenance
costs
Low temperature
thermal output
Higher emissions
Needs cooling

Requires gas
compression
Poor efficiency at
low loads
Output varies w/
ambient temp

Slow start up
Low power to
heat ratio

High costs
Low temp.
thermal output
Lower mech.
Efficiency

Typical Sizes

< 5MW

500kW 300MW

500kW
300MW+

30kW 1MW

Installed
Costs $/kW

1,500 2,900

1,200 3,300

670 1,100

2,500 4,300

O&M Costs
/kWh

0.9 - 2.5

0.9 - 1.3

0.6 1.0

0.9 1.3

Advantages

Combustion
Turbine

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CHP Typical Components Electrical

Equipment
Electrical Generator

Converts mechanical shaft power to electricity

Typical output voltage
IC Engine: 480V 4,160V
Gas/Steam Turbines: 4,160V 13,800V
Microturbines: 480V

Typically synchronous

Can produce power during grid blackouts

Grid interconnection

Generator on IC Engine

Several Grid Interconnection Standards

IEEE 1547; FERC Order 2006; State-specific
standards

Required for safety, grid integrity, equipment

protection
Parallel Operation is typical/preferred
Export mode Flexible CHP system sizing
Non-export mode Load following
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Switchgear

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CHP Typical Components Heat

Recovery
Heat is recovered from:
Hot water
Hot exhaust gas
Steam

Typical uses:

HRSG

Jacket water Boiler economizer,

space/process heating
Exhaust gas Heat recovery steam
generator (HRSG)
Steam
Energy transfer stations
Air handling units
Absorption/steam chillers
Industrial processes

Economizer

Absorption Chiller

Air Handling Units

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 Reduced Energy Costs

Fuel Input Energy (100%)

Why Pursue a CHP

Project?
Radiation (5%)
Exhaust
Not Recovered
(15%)

Improved Electric Reliability

Recoverable Energy (80%)

Efficient Fuel Utilization

Exhaust (20%)
850 F
Waste Heat captured for useful work
Coolant
No transmission and distribution losses Jacket(30%)
Reduced susceptibility to grid failures

Improved Energy Security

150oF 250oF
Shaft Power to
Drive Load
(30%)

Energy Distributions
Generation is on-site
for a Typical
Reciprocating Engine
Particularly applicable to Military Bases

Improved Power Quality

Reduced line losses/steady voltage

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What Makes a Good CHP

Opportunity?
Combination of Technical, Financial, Regulatory Factors
Technical
Long operating hours (>5000 hrs/yr)
High, coincident, electrical & thermal loads (>4000 hrs/yr)
Existing and aging central plant
Power quality/reliability issues

Economic/Financial
Wide spark spread
Low or no standby charges/penalties
Access to Funding/Financing
ESPCs/UESCs
Utility Rebates and Incentives

Regulatory/Utility
Favorable permitting environment
Simple, clear, fair interconnection requirements
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CHP Market Driver Stable, Low

Gas Prices

ry Hub Gas Prices expected to Remain between $3.00 and $6.00 thru 20

ICForecast: Natural Gas Strategic Forecast, Q3 (July)

2015 Base Case
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$/MMBTU

Cents/kwh

Spark Spread Improving

for CHP

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Forecast
Spark Spread

Historical

Forecast

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CHP Case Study National Institutes of Health (NIH)

UESC Financed Project

PES designed, permitted and built
SGT-600 23MW combustion
turbine
Inlet air cooling
1200 HP gas compressor
Dual fuel capability
100,000 lbs/hour steam unfired
180,000 lbs/hour steam fired
Interfaces to existing systems
Interconnect with PEPCO/PJM
15 year O & M contract
Provision for Temporary boilers
2011 CHP Energy Star Award
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CHP Case Study PES Owned Midtown Thermal Plant

Solar Taurus 60 5.7MW

Combustion Turbine
Dual fuel Capability
Inlet air cooling

Turbine heat recovery provides

base load steam demands
27,000 lbs/hour steam unfired
65,000 Lbs/hour steam fired

350 HP gas compressor

Power export
Interconnect ACE/ PJM

PES designed, permitted, built

Reduces overall site emissions
2015 CHP Energy Star Award
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CHP Case Study DC Water

15 MW Combined Heat and Power (CHP) facility
Three 4.6 MW Solar Mercury 50 low-nitrogen oxide
gas turbines
Digester gas cleaning and compression
Heat recovery steam generators, duct burners
Backup boiler

Uses biogas from DC Waters water treatment

process to produce steam and electricity
Steam returned and used in DC Waters treatment
process

Contract value
Construction: $82 million
O&M: $90 million

Schedule
Contract signed February 2012
Construction begins Summer 2012
Construction completion August 2015
15-year O&M Phase begins

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Questions & Contact Information

Bob Albertini
Pepco Energy Services
balbertini@pepcoenergy.com
708-710-5645

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