ENERGY: Taking Forward The City
Region’s Unique Renewable Energy
Opportunities
Simon Pringle, head of sustainability, BDO (chair)
Mikele Brack, director, public sector at GE, on combined
heat and power
Richard Goodfellow, head of energy and utilities,
Addleshaw Goddard and member of the LCR Green
Economy Panel
John Carolin, director of business development, Biogen
Download pt 1 contains slides from:
Mikele Brack, director, public sector at GE, on combined
heat and power
Download pt 2 contains slides from:
Richard Goodfellow, head of energy and utilities,
Addleshaw Goddard and member of the LCR Green
Economy Panel
John Carolin, director of business development, Biogen
Island mode
Mikele Brack
Director, Public Sector
GE Global Operations
Distributed Generation:
The business case for
CHP
11th September 2012
The Changing UK Energy Market
Changing Generation Mix & Demand Profiles
Active Distribution
Networks
Variable Generation
Active Demand
Large Generation
Peak Commuting Time
60
Electricity Demand (GW)
55
Variable generation
50
Peak Commuting Time
Variable generation
Smart(er) grids
& meters,
energy storage
Generation
2020 Demand ~ 15
GWh (daily) - 1.5
million vehicles
45
Optimal Charging
Period
Typical winter daily
demand
Time of use
tariffs
40
12,000 miles p.a.
35
23:00
22:00
21:00
20:00
19:00
18:00
17:00
16:00
15:00
14:00
13:00
12:00
11:00
10:00
09:00
08:00
07:00
06:00
05:00
04:00
03:00
02:00
01:00
00:00
30
Time of Day
Distributed Generation
Inflexible Generation
Demand
5
The Changing UK Energy Market
What does this mean?
Today‘s Energy Market
Tomorrow’s Energy Market
~75GW
Significant coal
power plants
4 GW reserve
Generation – 5%
Predictable demand
Low levels of
renewable
generation
~110GW
Increasingly digital
Increase in urban
population
15% generation low
carbon
Regulation to support
energy efficiency
Carbon pricing
8 GW reserve
Generation – 7%
9 GW Coal
Retirements
37 GW of
renewables on line
Residential bills will
double
Backup generation becoming more important & valuable
The Power Delivery Model is Evolving
CHP - Cogeneration
Fuel flexibility and tailor-made solutions
Landfill gas
Coal mine gas
Sewage gas
Associated
petroleum gas
Island mode
Special gases
Cogeneration
(Natural gas)
Greenhouse
applications
Biogas
Business Benefits Summary - CHP
Reduced CO2
Reduced Energy OPEX
1MW e CHP
CCHP: coolth, heat &
electricity
• Energy costs typically 20%
• Asset payback is now < 4 yrs
• Guy’s & St Thomas’ (6MW):
£1M/pa savings
• Savings may increase with
new government policies
around CHP
MWh
tonne
MWh
MWh
£/MWh
£/MWh
Gas
Elec
Fuel Total
O&M
O&M Total
OPEX
CAPEX
£MM
£MM
£MM
£/MWh
£MM
£MM
£MM
Term
Discount Rate
PV
Years
£MM
15
8%
2.33
NPV
Simple payback
£MM
yrs
1.33
3.7
Reduced Risk
Exposure to rising
energy prices
• Guy’s & Thomas’
savings increased by
30% in last 3 years
• Assuming energy
prices rise faster than
interest rates,
economics continue to
improve
Period '12
Before After
Diff
68434 58699 -9736
11972 10641 -1331
26572 37913 11341
16101 7994.7 -8106
29.0
29.0
80.0
80.0
Primary Energy
CO2
Gas
Elec
Gas
Elec
0.77
1.29
2.06
0.00
2.06
1.10
0.64
1.74
6.00
0.05
1.79
1.00
0.33
-0.65
-0.32
-0.05
-0.27
1.00
>85% efficiency: reduces C02
• Hot water and building heating
provided from waste heat,
absorption chillers create cooling
• Assuming 1 MW: annual CO2
reduction –1k tonne
• Key part of Government Energy
Policy for decentralised energy
Increased Security
Community facilities &
developments
• CCHP becomes primary
source, grid secondary,
significantly reducing risk of
delays from DNO outages
CCHP – Combined Cooling Heat & Power – 4 year payback
GE Confidential - Distribute to authorized individuals only.
Optimising Distributed CHP
Additional Equipment for new or retrofit facility
Balance of Plant – Back Up Generation,
Switchgear and UPS
GAS ENGINE &
CHP MODULE
Grid Backup
Gas
Heat for Building
Electricity for Building
•
•
•
•
•
Optimise CHP Design
Install
Factory & Site Testing
Commission
Maintain
•
•
•
•
•
Optimise BOP Design
Install optional
Factory & Site Testing
Commission
Maintain
Virtual Power Plant - STOR
Export Electricity
Diesel Backup
GE hosted Bureau for the
automated management of
the customer owned assets.
(Communications – via
wireless/ethernet etc)
Modify existing equipment for
synchronisation to grid
• Switchgear mods
• Synchronisers
• Remote Terminal Units
(RTUs) for communications
Jointly Optimise Overall System Design & Service Package for Critical Plant
What is STOR?
Harnessing existing back up assets to generate new income
Short Term Operating Reserve (STOR)
This is the provision of additional active power from generation provided by ‘Asset holders’
who have installed standby capacity.
Asset Holders – Capacity
…are paid for making their generating capacity available to the National Grid
Asset Holders - Generation
…are also paid when the generation is utilised by the National Grid (at times of peak load, or
where traditional generation has failed). Examples are any industry with currently installed
standby generation – eg – water utilities, hospitals, banks, data centres, farming…
Aggregator
GE Energy manages the aggregation of multiple smaller generation providers (Asset Holders)
into 3MW lots which are required by NG.
Why is STOR required?
Less Predictable Generation & Changing Demand
Challenges
Scenario
New inflexible
generation, wind
& solar
Hot sunny day,
air conditioning
on maximum
Changing demand
patterns from
Electric Vehicles
England are in
the World Cup
Final
Changing
customer
behaviour
Emergency mtc
-1 GW
generation goes
off line
Increasing
demand for power
Grid reserve
capacity is now
critical
STOR
Asset Holders
spare backup
generation sits
available
Grid sends signal to
generation
Generation comes
on until it is not
required
Backup generation
goes back into
standby mode
Business Case
GE provide STOR income stream
GE undertakes service as a turnkey
provider, maintain, operate and trade
backup asset
•
Annual health check and
remedial reporting
•
Annual asset servicing*
Available Hours Per Year
•
24 hour reactive service
Running Hours Per Year
•
Electronic Management System
•
Complete maintenance and
performance history (from date
entered into GE STOR)
Availability Income
Utilisation Income
Other savings due to STOR (existing service)
•
1
7008
55
MW Available
Contractual and “bid-in” services
Total Income
£ 19,120.75
£ 10,642.50
£ 4,000.00
£ 33,763.25
Fuel ( aprox 265 litres p/h @ £.63 p/l)
£
Asset owner benefit from STOR
£ 24,581.00
Also provide guaranteed maintained backup infrastructure
9,182.25