CHP Case Studies – Saving Money and Increasing Security

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CHP Case Studies – Saving Money and Increasing Security ( chp-case-studies-–-saving-money-and-increasing-security )

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These benefits of combined heat and power systems are significant for the environment and for energy conservation. National and state governments recognize the social values of such CHP systems, and often provide incentives to help develop new installations. For example, in California, the Public Utilities Commission provides up to 30% rebates for CHP installations that meet certain size and efficiency requirements; 40% if biogas fueled. The economic benefit of such microturbine-based CHP systems are becoming well accepted in the market, and example installations will be covered later in this paper. To continue this adoption trend, however, microCHP systems must become even easier to apply and install. One example is the Capstone C60 Integrated CHP System (C60-ICHP), released in September 2003. It is, in many ways, similar to integrated CHP systems offered by Inger- soll-Rand and others. The Capstone C60-ICHP system was described in detail in a related AEE paper presented at Globalcon in Boston, Massachusetts March 24, 2004. Figure 4 shows the C60-ICHP System. Figure 4. – C60 Integrated CHP System CHP CASE STUDY #1 – RADISSON HOTEL Two C60-ICHP systems are installed at the Radisson Hotel in Santa Maria, California. In this application, the hot water output is used for several different purposes. One use is for domestic hot water for the hotel guests. This thermal load is highest in the morning, and then increases again later in the day. A second use is for laundry service. This is highest during the working day. The third use is for building heat. This load is seasonal, and steady during the day when outside temperatures are low. Figure 5 shows the installation of these two C60-ICHP units at the hotel. Figure 5. – Two C60-ICHPs at Radisson Santa Maria The two C60-ICHP systems are set to operate in parallel with the electric grid, and Electric Priority mode is used. In this CHP mode, the electric power output for each microturbine is set at the desired level. For this Radisson hotel with 188 rooms, electric power is normally set for maximum from each microturbine during the day. This is below the building’s peak electric demand, and power does not flow back into the electric utility grid. While the microturbines work to maintain their programmed electri- cal outputs, the exhaust diverters automatically adjust to accommodate the changing thermal requirements of the hotel. This example shows how the flexible control capa- bilities of the C60-ICHP allow simple integration with a building with changing thermal requirements. The two C60-ICHP systems are set to operate 24 hours per day. The operating scheme was selected to match the thermal requirements of the hotel, provide the maximum electric energy, and reduce time-of-use demand charges from the local electric utility. This results in maximum financial benefit to the hotel, and helps to offload the utility when power is needed most by other customers. The hotel’s electrical utility is PG&E, its gas utility is Sempra’s SoCalGasCo. PowerHouse Energy supplied the ICHP systems to the hotel and managed the installation, system startup and continuous operation. The ICHP application qualified for the state’s PUC Self- Generation Incentive Program rebate of 30% on the total installed cost. The expected energy savings are very good, with a calculated average savings of about $5,528 a month or $66,336 per year. This savings to the hotel is net of natural gas, projected lifecycle maintenance costs, and project financing. Total installed cost was $185,000 (net of the PUC rebate), giving this project a respectable 32% IRR. The operating availability of the ICHP systems, in- cluding start up, commissioning, and service response time has been better than 95% to date. Page 3 of 6

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