UMED District Plan
Update
ML&P Meeting
August 27, 2013
Municipality of Anchorage
Community Development Department
Kristine Bunnell, Project Manager
Carol Wong, Manager, Long Range Planning
Page & Turnbull
with
RSA Engineering
Dick Armstrong, PE, CEM
Kittelson & Associates
HMS
Strategic Economics
UMED District Plan Update | What and Why Now?
STAKEHOLDER-DESIRED PLAN
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Designated as a Major Employment
Center in Anchorage 2020
District Planning and Zoning
State Grant Application
 No Federal or Muni Funds
GRANT REQUIREMENTS
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Community Involvement Plan
UMED District Plan Update
Parking Utilization Study
Energy Cogeneration Study
UMED Cogen Study Purpose
– Validate UAA/MLP 2008 Plan and Update
• Centralized 10 megawatt (MW) CHP Gas Turbine Plant
• Utilidors to distribute waste heat: $55M just UAA & PAMC,
$63M with UAA Dorms
• Location for a centralized plant – UAA or APU near PAMC
• Limited distribution to only UAA, APU and PAMC
– Evaluate Alternate Solutions of Distributed CHP Systems at:
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PAMC
UAA Dorms
SCF
APU
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UAA
MYC
ANTHC
API
– Define Major Constraints:
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Tariff relief for demand charges
Code restrictions
ML&P safety concerns
Enstar concerns
DISTRIBUTED COGENERATION DEFINED:
Electricity and Heat production that is on-site or close to the load
center and is interconnected to the utility distribution system.
WHAT IS A MICRO TURBINE?
In layman's terms, “A miniature jet
engine that runs at speeds up
to 96,000 rpm and generates
electricity and heat.
• Electrical Power Output
•
Cooling fins
Exhaust output
Recuperator
Fuel injector
Air intake
Combustion
chamber
30 kW to 100 MW range
• Highly Reliable
• Ultra Low Emissions
• Multiple Fuels
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natural gas, propane diesel,
biodiesel,
methane/biomass/liquid fuels
• Simple/Cost Effective Design
• Very Low Maintenance
Generator
Compressor
Air bearings
Turbine
MICROTURBINES VS PISTON ENGINES
Microturbine
Traditional Piston Engine
Ultra low emissions
Local air permits and exhaust cleanup required
Low maintenance – Six hours per year
High maintenance – Oil, Coolant, Injectors-160
scheduled maintenance periods in 5 years
On board digital electronics
External controls without power electronics
Integrated utility protection & synchronizing
Requires external relays & control equipment
Lightweight & small footprint
More than twice the weight & footprint
WHY CHP?
COMBINED HEAT AND POWER
Equipment Basis of Analysis
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Capstone Micro Turbines Used for Analysis
– 2 major suppliers analyzed
• Capstone: Represented locally
• Flex Energy: Not represented locally
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Capstone has 3 Size Offerings: 30 kW, 65 kW, 200 kW, Multiples
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Flex Energy has 250 kW, Multiples
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Capstone Fuels Selection: Liquid & Gas (diesel, jet fuel, propane, NG)
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Flex Energy: Only NG, Propane
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Capstone has Direct Drive, 1 Moving Part, Air Bearings, Low
Maintenance
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Flex Energy Requires Gearbox, Lubricants, More Maintenance
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Both Allow Dual Mode – Standalone or Grid Connected
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Flex Energy Requires 8 hrs Maintenance/year, Capstone Requires 6
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Both Have Extremely Low NOX Emissions Due to Lean Fuel Mixture
Capstone C30
No Heat Exchanger Installed
C200’s Cascaded for
1,000 kW total
10’ x 30’
Exterior Installation at
Cell Tower in Alaska
Example CHP Alaska Locations
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Remote cell towers off grid
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H2 Oasis Water Park
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1 C65 and 3 C60s
Miscellaneous other locations
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Portage: 1 C30
Homer: 1 C30
Tazlina: 1 C30
Alyeska Prince Hotel in Girdwood
Fairbanks: 1 C65
Montana creek DOT station (Mile 82 Steese Highway) 1 C65
Kenai Peninsula (Fort Beluga, Kenai, Happy Valley, Nikiski, Ninilchik): 5 C30’s,
4 C60’s, 14 C65’s, 4 C200’s, (this fall 2013: 2 C1000’s)
Shemya: 7 C65’s
Being Installed Now
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Oliktok Point: 4 C30’s (Diesel) US DOE Atmos. Radiation Meas. Program
Normal (Base) Mode
Potential Roadblocks to Implementation
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ML&P Interconnection requirements (113) state that cogen units cannot
connect to the user’s load, but must be sold back to utility.
– CEA allows the customer to connect a CHP unit on the load side of the meter which
reduces their demand charges.
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Financial incentive to use CHP is significanty reduced if customer cannot reduce his demand
charges
Power Back Feed to Grid Concerns
– Interconnecting disconnect device allows for non-utility generation lockout
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Utility Power Quality Concerns
– Protective relays are required to continuously analyzed both the load and the grid to
isolate non-utility generation in the event of system disturbances.
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Finding Room Inside Existing or Outside Building for Installation
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Code Restrictions: NFPA, Building Codes, Utility Restrictions
Code Restrictions for Use of Micro-Turbines
(Sample)
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NFPA 37: Std for Installation & Use of Gas Turbines
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Key Provisions (not all inclusive)
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Adopted by reference in 2012 IFGC 616
Adopted by reference in 2012 IMC 915
Locate where accessible for fire fighters – NFPA 37, 4.1.1.1
No combustible materials stored in room – NFPA 37, 4.1.1.3
Interior walls, floors, ceilings must be 1-hour construction,
except top floor – NFPA 37, 4.1.2.1.1
Ventilation adequate to prevent build up of gasses – NFPA 37, 4.1.2.1.3
Attached engine rooms need 1-hr wall where attached to structures – NFPA 37, 4.1.2.1.4
Noncombustible construction on detached structure – NFPA 37,4.1.2.2.1
Keep detached structures 5’ from main building – NFPA 37, 4.1.4
Natural gas supplies, piping, gas trains, regulators – NFPA37, 5.1
Exhaust systems – NFPA 37, Chapter 8
Controls & Instrumentation of turbines – NFPA, Chapter 9.3
NFPA Chapter 11
IEEE 1547: Interconnection of Distributed Resources w/grid
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Adopted provisions by serving utility
Includes protective relays, utility manual disconnects
ML&P Issues
• Rates for purchase of Energy:
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Non-Firm Power Rate $0.03548 /kWh
ML&P Interconnection Guidelines
113 Class C Facilities
Non-utility generator installations from 100 kVA to 1,000 kVA, where the stiffness ratio is at least 30, are Class C
installations. The larger capacity of Class C facilities (relative to Classes A and B), and the consequent potential to island
large sections of the ML&P electric system is of much greater concern. In addition, Class C installations can significantly
influence primary feeder devices and operations.
Class C installations shall have the producer’s non-utility generation equipment connected directly to the ML&P electric
power system. Class C installations shall not serve any of the producer’s load(s) normally served by ML&P.
CEA Interconnection Guidelines
163 Class C Facilities
Non-utility generator installations of 100 kVA to 1,000 kVA, where the stiffness ratio is at least 30, are identified as Class C
installations.
Given the larger capacity of Class C facilities (relative to Classes A and B), the potential to island large sections of the
Chugach electric system is of much greater concern. In addition, Class C installations can significantly influence primary
feeder devices and operations. Accordingly, the probability of interference with Chugach consumers and system equipment
is high enough to necessitate more stringent interconnection requirements.
ML&P Does NOT Permit Connecting CHP to Building Load
CEA Allows Connecting Cogen to Building Load
Demand Savings – Single 200 kW CHP
Minimum Monthly Charge $12.88
*Single or three-phase 60 Hertz alternating current at 120/240, 120/208Y, 208Y/120, 240/120, or
408Y/277 volts as available.
General Service: Large at Secondary Voltage
Any service with a demand exceeding 20 kW for three consecutive months and metered at secondary
voltage.*
Schedule 22
(Monthly Charge)
Customer Charge $ 44.15
Demand Charge $ 13.64 /kW
Energy Charge
3.8840
¢ /kWh
Cost of Power Adjustment 2.974
¢ /kWh
Regulatory Cost Charge
¢ /kWh
Total Per kWh
0.0578
6.9158 ¢
MOA Underground Surcharge 2% on all charges/rates except RCC
Minimum Monthly Charge
$44.15
*Demand is determined by using the maximum average rate of energy use for any 15-minute interval. The
billing demand shall be the greater of the following: the recorded maximum demand for the month, or 80
percent of the maximum demand recorded during the preceding 11 months, or the customer demand,
under a special contract for a customer with on-site generation.
200 kW CHP could reduce demand charges by $ 32,736/year
Demand Savings – Single 200 kW CHP
General Service: Large At Primary Voltage
Any service with a demand exceeding 20 kW for three consecutive months and metered at Primary
Voltage.* The following monthly rates are subject to adjustment each quarter and are based on the total
kWh usage.
Schedule 23
(Monthly Charge)
Customer Charge $ 159.55
Demand Charge $ 15.34 /kW
Energy Charge
3.6580
¢ /kWh
Cost of Power Adjustment 2.974
¢ /kWh
Regulatory Cost Charge
¢ /kWh
Total Per kWh
0.0578
6.6898 ¢
MOA Underground Surcharge 2% on all charges/rates except RCC
200 kW CHP could reduce demand charges by $ 36,816/year
Sample Office Building
Assumptions for Economic Analysis
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Enstar G4 rate – Natural Gas
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– $360/mo. customer charge
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– $.6306/ccf
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ML&P Schedule 22 rate - Electric
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– $44.15/mo. customer charge
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– Demand $13.64/kW
– $.07053/kWh
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200 kW CHP
Dual Mode Operation
Heat Recovery Module
Electric Adsorption Chiller, 1.3 COP
$445,000 Installed Cost
Hydronic Heating, Electric Cooling
8760 hrs/year Electricity Generation
Base Electric Load Exceeds
CHP Capacity
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Electric output is fully utilized
CHP is Connected on Load Side of
Meter to Reduce Demand Charges
Sample Office Building
Result Summary
Project
• Summary
Project Information
Company Name UMED Generic Sample Calc
Facility Description Generic UMED building using 200 kW micro-turbine
Facility Location Anchorage AK - UMED District
Date of Analysis 10-Aug-13
Prepared By Richard S. Armstrong
Benefits Summary
10 yr IRR
10 yr NPV
Payback Period [Years]
Discount Rate
Calculations include benefits from:
Electricity Production; Heat Cogeneration; Cooling;
24.7%
$405,405
3.72
8.0%
5 Year Cash Flow Analysis
Net Investment
Total Annual Benefits
Fuel & O&M Costs
Net Cash Flow
Discounted Cash Flow
Initial
($445,000)
($445,000)
($445,000)
Year 1
Year 2
Year 3
Year 4
Year 5
$260,632
($144,938)
$265,845
($147,437)
$271,162
($149,986)
$276,585
($152,586)
$282,117
($155,239)
$115,695
$107,125
$118,408
$101,516
$121,175
$96,193
$123,998
$91,143
$126,878
$86,351
Equipment, Investment, and Operating Summary
Capstone MicroTurbines
1 x 200
Configuration 200R-FD4-BU00
Fuel Source LP Natural Gas
Total Installed Cost
Installation/Equipment Rebates
Avoided Equipment Costs
Financing/Tax Credits
Net Investment
($445,000)
$0
$0
$0
($445,000)
Total System Power Rating
Avg Monthly Generated Power
Avg Price of Offset Utility Power
Equivalent Cars Removed
Operating Hours/Year
Microturbine
8,760
Heat
3,624
Cooling
2,002
* using thermal input, not cooling output
200
138,700
$0.127
64
kW
kWh per Month
$/kWh
using EPA data
Efficiency [LHV]
52.0% Overall Total
62.6% during Heat
65.9% during Cooling*
41.8% FERC
UMED CHP Stakeholder Options
1.
Do nothing
2.
Base load CHPs to feed heat & power to building.**
3.
Size CHPs to feed heat, power to ML&P grid – no demand reduction
4.
CHPs in buildings that can be totally off grid via backup generation, or ML&P
backup with open transition transfer switch. Pay 12 months demand at
($13.64/kW to $15.64/kW) if using ML&P for >15 minutes.
5.
Carry the entire facility campus using CHP generators, interconnected using
smart grid to meet all thermal loads, and maximize efficiency by turning down
lightly loaded units. Provide backup using diesel micro- turbine or existing
diesel recip generators. Completely sever connection to ML&P, or work out a
mutual backup agreement.
6.
Pick 1-2 buildings per stakeholder to test a proof of concept CHP to determine
if they integrate to the system, work as desired and save as expected.**
** Requires Interconnection Requirements Section 113 relief from ML&P
Recommendations
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Request that ML&P remove Interconnection Requirement Section 113
that prohibits demand reduction and requires selling all power back to
ML&P. Permit connection of CHP on customer side of meter.
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Size distributed CHP units to pick up thermal loads, use power as
base load and demand reduction.
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Priority locate CHP units in high thermal load buildings.
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Consider smart grid variable loading in primary metered locations.
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Use steam micro-turbines if high pressure steam (150 psi) is available
to be reduced to 15 psi.
Stakeholder Feedback
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Most Want to Try a Proof of Concept CHP Unit
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Example Potential POC Locations:
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Native Hospital mechanical room using steam micro turbine
SCF data room
UAA Integrated Science building
UAA Sports Complex
UAA Energy Modules
APU Mosley Pool Building
API boiler room
MYC boiler room
PAMC boiler room
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Most Prefer to Base Load CHP, Sized to Pick up Thermal Load
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All Would Prefer to Continue Service with ML&P
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All Want to See Relief on Connection Requirement to Reduce Demand
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Some Would Like to Use Smart Grid Behind Primary Metered Grid