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What’s Hot? Combined Heat and Power – A
New Approach to Project Acceleration
Lucy Neiman – ERSAESP National Conference, 2016
Feb. 3, 2016 Phoenix, AZ
Agenda
• Overview of CHP• The New York challenge• NYSERDA Accelerator Program• Outreach services• Results to date• Conclusions
Definition:• It is the use of a single source of fuel to
simultaneously generate the co-products of heat and power (electricity).
What is CHP?
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Fuel CHP MachineryElectricity
+Heat
(DHW, space
heating, process)
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Benefits of CHP
4
The New York Challenge• Indian Point Energy Center (IPEC) license
renewal uncertain – 2,000 MW capacity • Con Edison has projected capacity
constraints in targeted areas; i.e. BQDM• CHP is difficult in NYC; financing, complex
permitting, retrofitting and space constraints
• Resiliency and critical infrastructure are key
• REV – Reforming the Energy Vision
NYSERDA’s CHP Acceleration Program
• In 2014 Con Edison and NYSERDA teamed to provide 25 MW of demand reduction from CHP under NYSERDA’s CHP Acceleration program
• Incentives for small/medium systems• 50 kW to 1.3 MW in size• “Pre-qualified” CHP program• Vendor applies for incentive• Incentive goes to vendor• $1.5M cap per project
The Catalog
The Catalog
NYSERDA Bonus Incentives
• NYSERDA offers bonus incentives of 10% for CHP:– For critical infrastructure such as
hospitals, nursing homes, food distribution centers, emergency command posts, Red Cross or Office of Emergency Management designated facilities of refuge, etc.
– For sites within Con Edison’s CHP Target Zones
• Conservative guidelines established by NYSERDA from past projects
• Applications that fall within the sizing guidelines will receive a streamlined review by NYSERDA
CHP Sizing Guidelines
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Building Type Microturbine Size Maximum Reciprocating Engine (RICE) Size
Multi-family Housing 0.25 kW/Apartment 0.35 kW/Apartment
Nursing Home 0.15 kW/Bed 0.25 kW/Bed
Hospital 1.4 kW/Bed 2.0 kW/Bed
Hotel 0.14W/Room 0.20 kW/Room
How Much Does It Cost?System Size
Typical Customer(these are real examples)
Total Cost NYSERDA Incentive
Out-of-pocket Expense
% Covered by Incentives
200 kWMultifamily 500 units $625,000 $350,000 $275,000 56%
Multifamily 450 units $850,000 $350,000 $500,000 41%
300 kW Multifamily 700 units $1,800,000 $561,000 $1,239,000 31%
400 kW
10-story @ 60,000 sq.ft. mixed-use
residential & commercial
$1,170,000 $454,000 $716,000 38%
600 kW Hotel 400 rooms $1,800,000 $930,000 $870,000 51%
800 kW7-story @ 200,000
sq.ft. mixed-use commercial
$3,400,000 $1,276,000 $2,124,000 37%
• ERS hired by NYSERDA; Free service
• End-to-end customer support– Guidance and consultation– Customer education– Supporting feasibility assessment
process– Guidance on selecting an appropriate
system – pre-screening tool
Outreach Support
• Vendor Expos – hold one per quarter in different venues often with tours of actual installations
• Target identification and outreach• Site visits as part of pre-screening
and outreach• Coordination with vendors – site
visits, bid interest
Outreach Support
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Results to Date
• Historical program performance:– Program years 2000 – 2012: $100M
produced 100 projects for 100MW; rate <10 projects/year
• Two years of full program implementation (2014-15) produced 63 applications in house for 12.8 MW– Avg. 204 kW per project; total
committed incentives $20.6M
Recent Updates
• Con Edison will match NYSERDA’s CHP incentives for qualifying opportunities in the BQDM (Brooklyn Queens) targeted area
• Customer commitments required by Feb. 29, 2016
Conclusions
• CHP delivers reliable power, lower energy bills, reduced carbon footprint; key component of New York REV initiative
• Catalog approach helps expedite a complex acquisition process
• Marketing, outreach support and customer handholding help increase participation
Contacts
• Lucy Neiman - ERS– [email protected]– 978-478-5326
• Gita Subramony - ERS– [email protected]– 212-789-8182, x292
• www.nyserda.ny.gov/CHP-Acceleration
