Leveraging DOE Demonstration Projects

1
Distributed Energy and Electric
Reliability October 22, 2002

• Leveraging DOE Demonstration Projects
• Scott G. Hutchins
• Distributed Energy and Electric Reliability
  Program
• Energy Efficiency and Renewable Energy
• U.S. Department of Energy

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National Energy Policy
Of the 105 total recommendations

• 21 affect distributed energy
• 13 affect TD

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Distributed Energy Portfolio
Fuel
End-use Integration Demand management, controls,
sensors
Technology Packages CHP systems, hybrids
Technology Development Microturbines, recip
engines, fuel cells, storage, wind turbine, PV
Composite Conductor
Transmission Systems Reliability, security
Distribution Systems Load management, power
parks, microgrids, storage, hydrogen
Utility Integration Interconnection, power
quality, power electronics
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Distributed Gas Fired Technologies
2000
Microturbines

• 1997
• 4,000-10,000/kW
• 80 degrees C
• Natural gas and propane fuels

Fuel Cells

• 900-1,200/kW
• 17-30 Efficiency
• Double digit ppm NOx

• 2010
• 600/kW
• 120-140 degrees C
• Multiple fuels

2007

• Cost competitive with the market
• 40 Efficiency
• Single digit ppm NOx

2010
1992
2000
Reciprocating Engines
Gas Turbines

• 300-400/kW
• 25-40 Efficiency
• 2-3 grams/kWh NOx

• 29 efficiency
• Double digit NOx
• 600/kW

2001

• 38 Efficiency
• Single digit NOx
• 400/kW

2007

• Cost competitive with the market
• 50 Efficiency
• lt 0.15 grams/kWh NOx

2010

• Cost competitive with the market
• lt5 ppm NOx

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CHP Systems
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Integration of Distributed and CHP Systems
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State Activities

• NARUC interconnection standards
• ASERTTI State grants
• State Energy Program (SEP)
• Regional Offices
• State codes and standards road shows OR, ID,
  WA, VT, ME, NH, MA, MA, CT
• Mid-West CHP Applications Center Chicago, IL
  (replicable to other regions)
• Market potential studies CA, NY
• Emissions studies TX
• National Governors Association
• Demand response New England

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CHP Activities

• Our CHP activities are guided by the actions
  identified in the National CHP Roadmap as those
  items required of us to meet the CHP Goal

• Raise CHP Awareness
• Double capacity to 92 MW
• Eliminate Regulatory and Institutional Barriers
• Develop CHP Markets and Technologies

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Raising CHP Awareness

• ORNL and IDEA assessing existing and potential
  markets for CHP/District Heating and Cooling at
  Colleges and Universities
• FEMP assessing CHP potential in Federal
  Facilities
• Support EnergyStar Award for CHP with EPA
• Participating in the International Energy Agency
  (District Heating and Cooling)

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Eliminating Regulatory and Institutional Barriers

• IEEE-NREL developing uniform interconnect
  standards
• Model rule for air emissions from smaller scale
  electric generation resources that will include
  offsets for CHP
• Texas DG Emissions Limit Analysis
• Environmental Barriers Report
• Interagency Agreement with EPA on DER/CHP Issues
• Supporting efforts to revise tax
  codes/depreciation schedules for CHP

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Developing CHP Marketsand Technologies

• Buildings Integrated Energy Systems
• Industrial Distributed Generation
• FEMP
• CHP/Microturbine demo at Ft. Drum, NY
• CHP/Microturbine installation at Coronado NAB
  Naval Amphibious Base
• Sandia Microtrubine Operators Handbook
• Technical Assistance CHP feasibility (several
  sites)

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Assessments are nice but heres how the federal
market really works.
FEMP Perspectives

• CHP project potential and development process is
  very site-specific
• Sometimes, federal facility is only part of a
  larger load
• Agencies never have enough money (multiple
  finance mechanisms) ESPC, UESC, Enhanced Use
  Lease, etc.
• The assessment gives an estimate of how much
  potential is probable, by sector, under given
  assumptions

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Strategic Partnerships

• www.eren.doe.gov/der
• Technical publications
• Workshops and conferences
• Technology planning
• Cost-shared RDD

National labs and Universities
Equipment Manufacturers
Commercial, Industrial, and Institutional Users
Federal, State Local Governments
Energy Service Providers (utilities)
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Regional Application Centers

• www.chpcentermw.org/home.html

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State Energy Program

• SEP projects and State Initiative Solicitation
  address regulatory and institutional barriers at
  the state and regional level
• Awarded in 2001
• FL CHP Protocol/Demo
• HI Identifying CHP Opportunities and Barriers
• IL CHP Environmental Permitting Guidebook
• IA Guidelines for permitting and barrier removal
• VA Overcoming CHP barriers
• In 2002 committed over 1.5M for DG/CHP, CHP for
  brownfields, fuel cells, comm. controls, energy
  storage, interconnection

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Key State Activities
States Regions play a critical role in
eliminating the barriers to and developing the
markets for CHP

• Output-based emissions standards
• Uniform Interconnection Standards
• Building Codes and Standards

Source Energy Information Administration,
October 2000.
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Model Rule
Output Based Standards, Credit for CHP, Emissions
Values Based on Usage (backup, peaking, base),
Attainment/ Non-attainment

• Regulatory Assistance Project is an organization
  that provides assistance and support to state
  energy and environmental officials
• Workgroup includes state energy and environmental
  officials, environmentalists, EPA, industry reps

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ASERTTI Cooperative Agreement

• Announced Feb 28, 2002 for 1M
• Awarded to facilitate the collaborative
  development of DG technologies
• Emphasis on CHP applications

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DER Road Shows
Yakima November 2002
Seattle October 2002
Detroit September 2002
ChicagoSeptember 2002
Burlington September 2002
Portland October 2002
Portland September 2002
Eugene October 2002
Concord September 2002
Boise October 2002
Amherst Boston October 2002
SpringfieldSeptember 2002
New Haven October 2002
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Lessons Learned

• Public-private partnerships essential in
  addressing regulatory, institutional, and
  technology issues
• Outreach needs to be tailored to address local
  conditions, barriers, and opportunities
• End-use integration RD is important (along with
  RD on components and systems)
• Communications and controls is the next challenge
  for optimizing interoperability and systems
  integration

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Pathway for Integrated DER Systems and Controls
Future Directions
Centralizedhierarchicalcontrol atpower plants
DER systemsintegrated andcontrolled ata single
site
Virtual utilities with aggregated control of
integrated DER systems across multiple sites
2000
2010
2005
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Convergence
Transportation and Electric Power
Power Park-Fueling Station
Natural Gas Pipeline
Reversible Fuel Cell
Fuel Cell
Hydrogen
Electricity
Hydrogen Storage
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Conclusions

• DOEs DEER activities address needs from the
  National Energy Policy
• DEER is integrated with most of our distributed
  energy efforts
• DEER increases efficiencies and reduces emissions
  of many distributed energy systems
• States/regions play critical role in eliminating
  the barriers to and developing the markets for
  DEER

Lets continue to work together to advance the
prospects for DEER