Hybrid Technologies for On-site Power Generation

Texas AFRED R&D ConferenceAustin, TX September 12, 2007

Larry OsgoodConsulting SolutionsPERC Consultant &DG Program Manager

TX AFRED Hybrid Generating Systems Presentation Overview

•Basis of work PERC R&D and DG programs

•Why Rural & Remote Power Generation is important

•Hybrid system rationale

•Market entry challenges and approach

•Hybrid optimization

•CHP power units

•Plans to move forward

PERC Research & Development

To invest in new technologies and to foster industry practices that will:

•Bring innovative products and services to propane customers, •Improve the productivity and economic vitality of the propane industry, and •Provide greater value to propane consumers.

www.propanecouncil.org/rd

PERC Distributed Generation Program

•Fuel cells•Micro-turbines •Engine generator sets• Standard• Hybrid (solar, wind, . . .)• CHP• Micro-CHP

www.propanecouncil.org/rd/distr_power_gen.html

Propane 5 kW heavy-duty charging system

Why Rural & Remote Power Generation is Important

• Costs for electric lines average $55,000 per mile in US + power plants & transmission lines

• Electric power is essential for communications, radar, security, education and more

• Recent disasters proved value of DG andpropane fuel supplies

• A propane genset can be effective for standby power anywhere in the world

• But the key issue is, does propane make sense as an on-site power fuel

DG Market Challenges & Strategies

Direct power generation has high costs. If it was easy, it would already be done.

Our strategies to succeed in DG markets:● Increase performance of engines, lower costs● Utilize CHP to recover heat and lower costs● Utilize on-grid systems where incentives available● Backup power w/ peak-shaving capability● Gas Heat Pump w/ backup power● Advanced propane gensets/CHP in solar/wind

hybrid systems for affordable off-grid electricity

Why Use Propane/LPG for Local Heating, Cooking and DG Fuel?

•Easily transportable•High energy density, liquid form•Easily stored on site•Can be stored underground•Not a ground contaminant•Self pressurizing gas, no pumps•Clean burning•Efficient•Substantial supplies•Readily available

Fuel-Generated Power is Expensive

•Continuous fuel-generated power?

•Fine for limited uses, such as an RV & back-up power

•Not cost effective for most prime power

•Operating costs are high

•CHP & Hybrid systems lower capital and operating costs

Diagram of a Hybrid Power System

Sunwize Hybrid Solar/Propane Power System

Polar Power Small Hybrid Solar/Propane Power System

Polar Power Mid-size Hybrid Solar/Propane Power System

Hybrid Renewable Systems Have Significant Advantages

• Hybrid = distributed electrical generation combining 2 or more power sources

• Produce electricity on site, where power lines are not available or practical

• Provide power on-site in a cost-effective and environmentally friendly manner

• Hybrid systems are optimal for rural, remote, and developing country applications

Propane Makes Small Renewable Hybrid Power Systems Perform

•Solar photovoltaic (PV) panels•Small wind turbines•Micro-hydro (water) turbines

All the above are “renewable” but are not reliable due to intermittency

Propane gensets provide instant, reliable power

Propane provides renewables with solid on-site performance

Large Renewables Have Significant Drawbacks for State RPS Programs

•High initial costs•Reliability and site issues can be difficult•Require significant power transmission systems

Global GHG Emissions by Sector

8%

14%

24%

14%

5%

3%14%

18%

Important to have higher efficiency and lower CO2 power generating systems

Summary of PERC DG 2007-8 Program Objectives to Move Hybrids Forward

Focus: Bring Propane Hybrid Systems to Market

• Work with engine and generator mfgs. to develop superior propane engines & gensets

• Work with power-electronics suppliers to improve performance & system controllers

• Build relationships w/ other stakeholders including system manufacturers, installers, renewable industry, users & ww agencies

• Present PERC accomplishments and new systems in papers at DG conferences

Early Hybrid System

Fuel Cells in DG / Hybrids ?? No.

Fuel Cell System Performance?- Lower efficiency- Higher cost- Higher maintenance- Shorter life

Biggest issue:Can’t start and stopon demand

Advanced Heavy-duty 2.5 – 5 kW Propane Engine & Genset

Lombardini HD LPG Engine

HD Diesel Based2 cylinder

Factory LPG

Liquid Cooled

3 main bearings

Overhead Valves

Continuous duty

Small Propane & Diesel Gensets Compared (1 – 10 kW)

30,000-60,000

hours

2,000 – 8,000 hours

1,000 – 5,000 hours

Service Life of Genset

2,500 -10,000 hours

100 – 200 hours

100 – 200 hours

Maintenance Interval

24-hour capable

Must de-rateMust de-rateContinuous Duty

24 – 31 %20 – 22 %18 – 20 %Full - Load Efficiency

20 – 26%17 – 18 %13 – 16 %½ - Load Efficiency

FineWet stack?OKLight Load

H.D.Advanced Propane

DieselStandard Propane

GensetItem

Current Rural Hybrid System

Propane genset is in white box

Grey box is new Xantrexhybrid system controller with inverters

New Xantrex Hybrid System Controller

New SMA “Sunny Island” Inverter

High overload and Surge capacity

Automatic generator starting

DC & AC coupling built in

Output load shedding!

Gaia Advanced Hybrid System Controller w/ Large-capacity Battery Storage

Cost Advantages w/ Hybrid System

Gensets have a lowinitial cost, buthigh O&M costs

Renewables have high initial costs with low O&M costs

The right combination of renewables and propane genset provides the lowest system cost, and highest reliability

Initial CostOperating

Cost

+

Actual Output from HOMER Optimization Model

http://www.nrel.gov/homer

HOMER is a computer model that simplifies the task of evaluating design options for both off-grid and grid-connected power systems for remote, stand-alone, and distributed generation (DG) applications. In 2001, identified hybrid systems optimal over solar only. Includes a web link to site specific solar data.

Sample Hybrid System Costs

Propane genset onlySolar system onlyCurrent hybrid

Higher cost genset, no optimization, subsidies, or cost savings for no pole & wire

Optimized hybrid sitew/CHP

$1.58 per kW$ .95 per kW$ .72 per kW

$ .20 - .40 per kW

CHP System Advantages

• Regular gensets produce electricity – don’t utilize “waste-heat”

• CHP systems start with advanced propane engines w/ 50% better efficiency

• 2-3 units of heat energy for every unit of electrical energy produced

• CHP systems typically twice as efficient as central electrical production

• Lower energy cost and CO2 output

New Honda 1.2 kW m-CHP System

• UL listed propane system• PERC home demo in MA• Target home heating

market• Provides heat and

electricity• Can provide all home

electricity needs• Replace conventional

furnaces• Jointly developing off-grid

& back-up system(adding storage)

1.2kW m-CHP 1-cyl Liquid-cooled Genset Module

New 5kW CHP System

Marathon HD Power Generators in a Hybrid Residential System

• Minotaur 2.5 & 5 kW gensets available now

• Full time, prime power, high efficiency systems

• 5 kW ecopower CHP UL listed and available now

• ecoisland developed, UL listing target is early 2008

• Distribution network in development

Testing for Yanmar 5 kW CHP System

• Testing at GTI is complete• Picture is 5 kW propane unit in test cell• Results excellent• Net output: 4.64 kW• Elec. Efficiency: 26.3% LHV,

highest system efficiency tested to date•Noise extremely low: 51 dB

10,000hoursMaintenance interval

54dB(A)Operating sound level

790kgNet weight

Permanent magnet-Generator

4 cycle gas engine*-Engine

1470x800x1790mmW x D x HDimensions

85.0% (LHV)Overall efficiency

53.5% (LHV)Heat recovery rate

31.5% (LHV)Generating efficiency

Efficiency

16.8kWHeat recovery

Inverter-Grid connecting system

Single / AC 100/200VPhase / voltage

9.9kWRated output

CP10VB1Items

9.9kW Advanced CHP System Specs

Rationale for Hybrid Market Opportunity

• Electric power is increasingly needed to improve the quality of life around the world

• Power needs at remote sites are increasing

• Remote Power costs are extremely high

• Renewable power emphasis is increasing

• Emphasis on lowering CO2 emissions is “huge”

• DG is a lead item in future market development potential and gallons

How Do Hybrid Systems and Propane Support the On-Site Power Market

• Propane is a reliable & clean fuel for power generation

• New propane small genset technology leapfrogs diesel as the premium fuel in efficiency, maintenance and longevity

• Hybrid systems generate power more efficiently and for lower cost than other alternatives

• Propane hybrids maximize the performance of renwables for sustainability into the future

For More Information Contact

Larry OsgoodDistributed Generation Program ManagerLDOGood1@aol.com

Greg KerrDirector of Research and Developmentgreg.kerr@propanecouncil.org

Hybrid System Fact Sheet and more at:www.propanecouncil.org/rd