Easing the Integration of Intermittent Renewables with

Combined Heat and Power

Kyle Siler-Evans

RenewElec Workshop, 2010

The Problem

• Fluctuations in intermittent renewables must be balanced with fast-ramping resources.– Adds cost and emissions

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The Problem: Reduced Emissions Performance

Source: Katzenstein et al., 2009

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The Problem: Added CostCost of energy supply in PJM:• Energy: ~$50 billion• Capacity: ~$5 billion• Regulation: ~$0.5 billion (~1%)• Reserve: ~$0.03 billion

Source: Based on 2008 PJM market data

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Outline

• Balancing Intermittent Resources with CHP

• Encouraging Privately Owned Resources to Support the Grid

• Spurring Adoption of CHP

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Combined Heat and Power

Conventional Generation

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Why CHP?

Source: Adapted from EPA, 2008

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Why CHP?

Source: Adapted from EPA, 2008

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Example Scenario: Oversize industrial CHP

Source: Adapted from EPA, 2008

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Example Scenario: Use excess capacity from underutilized CHP

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~100 GW installedIn U.S.

Example Scenario: Use excess capacity from underutilized CHP

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Research Objectives

• How does the “CHP strategy” compare to traditional, centralized gas turbines?

• How much CHP is needed to balance a given penetration of intermittent renewable generation?

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Outline

• Balancing Intermittent Resources with CHP

• Encouraging Privately Owned Resources to Support the Grid

• Spurring Adoption of CHP

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Regulation Markets

• Regulation requirement in PJM is ~1000 MW (1% of daily peak).

• 25% of this requirement can be met by demand-side resources.

• There was not a single demand-side resource participating in the regulation market in 2008.

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Regulation Market Prices

Source: PJM 2008 market data

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Research Objectives

• Evaluate existing opportunities for demand-side resources to participate in regulation services.

• Designing new mechanisms for DSR participation where necessary.

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Outline

• Balancing Intermittent Resources with CHP

• Encouraging Privately Owned Resources to Support the Grid

• Spurring Adoption of CHP

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Making CHP More Attractive

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Encouraging Broad Adoption of CHP

• Strachan, N.; Dowlatabadi, H., Distributed Generation and Distribution Utilities. Energy Policy 2002, (34), 649-661.

• King, D.; Morgan, M., Customer-Focused Assessment of Electric Power Microgrids. Journal of Energy Engineering 2007, 150-164.

• King, D.; Morgan, G., Guidance for Microgrid Legislation. 2003.

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Thank You

Question?

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