The Role of District Energy: Greening Heating & Electricity Supply Presented at: Building a Vision for Green Energy in British Columbia Trent Berry, Partner, Compass Resource Management Ltd. November 4, 2009 Questions Should our highest quality energy source (electricity) be used for our lowest quality energy service (heat)? Are there better uses of green electricity in the near term then heating (e.g., electrification of transportation)? Are some renewable resources better used for producing heat then for producing electricity? Is there a role for combined heat and power in a green energy system within B.C. and the western interconnection? Are there more efficient forms of electric heat? Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 2 Heating is a Large Source of GHG Emissions 20% of stationary combustion is residential heating. Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 3 What is District Energy? Energy Centre(s) Distribution System District energy involves centralized approach to heating and sometimes cooling, with or without cogeneration of electricity. Neighbourhood energy utilities can also be developed around distributed technologies. Many possible technologies depending upon location and application Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 4 Energy Transfer Stations Building Hydronic HVAC Penetration of District Energy Source: International Association for District Heating, District Cooling and Combined Heat & Power. Data from 2003. Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 5 Local Activity Other B.C. Systems: - Dockside Green - Revelstoke, - Whistler Athlete’s Village - Prince George - Squamish - Sun Rivers Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 6 Today’s Value Propositions Reduce first costs / lifecycle costs Improve quality of service Improve environmental performance (lower resource use and GHG emissions) Reduced risk / increased flexibility Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 7 Gas and Electricity Savings Biomass District Energy System Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 8 Gas and Electricity Savings Heat Pump District Energy System Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 9 Flexibility Swedish District Energy Growth and Fuel Sources (1970 – 2004) Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 10 Example: Southeast False Creek ~6.3 million square feet and 64,000 MW.h of annual heat demand Sewer Heat recovery $42 million in capital 25-Year Levelized Real Return on Investment = 5.7% GHG Emission Reductions = ~4 – 8 kt / year (40 – 60%) Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 11 Example: Southeast False Creek Green Energy Dialogue, Role of District Energy, November 4, 2009, Page 12