RESILIENCY – ANOTHER FRUIT OF COMBINED HEAT & POWER (CHP)

6th Annual United States Green Business Council (USGBC) Energy Summit

Doubletree Hotel Greenway Plaza, Houston TX

Oct 13th 2016

Suresh Jambunathan, Veolia North America

E-mail: Suresh.jambunathan@veolia.com

Phone: 630-335-4544

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WHO IS VEOLIA?

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� NYU campus CHP (13.4 MW + 90 ,000 lb/hr steam)

– 2013 EPA Energy Star awardee

� Hurricane Sandy in 2012

◦ Total regional losses: $30-$50 billion

◦ NYSE shutdown loss ~$7 billion

◦ CHP enabled facilities “powered” on. Your

dollar value to “light in the darkness”

quantifies your risk tolerance.

� “Regular” CHP energy savings of $5 MM/yr are

extra. CHP is the core of a microgrid and serves

22-buildings with power, steam/hot water.

� Global warming is predicted to increase frequency

of severe weather events - an argument favoring

resiliency?

RESILIENCY & CHP - WHY DOES IT MATTER? FOLLOW THE MONEY!

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RESILIENCY = REDUNDANCY + RELIABILITY

� Resiliency: “ability to quickly recover from or adjust to misfortune or change” (Merriam

Webster dictionary)

◦ Redundancy = ‘N+1” sources of electric and thermal energy

◦ Availability = Hours/year of reliable energy supply

� Attaining 100% resiliency is impossible. But a properly operated & maintained CHP system

backed up by the grid gets you really close to 100%.

� ANCILLARY CHP BENEFITS

◦ Environmentally conscious investments increase enterprise value….. Indirect, but very

real benefit of a CHP investment

◦ Sustainability is not in conflict with profitability.

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SCHEMATIC VIEW AND COST-VALUE TRADEOFFS

https://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_critical_facilities.pdf

CHP backs the electric grid (or vice versa).

Thermal energy supply backs up package

boilers

CRITICAL FACILITIES:

Water & WW Treatment Plants

Hospitals & Prisons

Military & Police HQ’s

Police and fire stations

Datacenters

Emergency & community shelters

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Set objectives & gather data

Quickly conceptualize configurations + appraise (FEL2 or FEL3)

Project development

Technical: Configuration, engineering, procurement, construction

Legal: Structure of contracting entities (LLC, S or C Corp etc…)

Commercial: Contracts for fuel, power, O&M, grants & incentives

Environmental: Permits

Financial: Financial models, equity & debt

Risks & Mitigants: Project Execution Plan (PEP)

PLAN FOR RESILIENCY DURING CHP PROJECT DEVELOPMENT

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RESILIENCY CAN BE VALUED DURING CHP PROJECT DEVELOPMENT

Capturing the value of resiliency

helps deploy more projects

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Leader in value-added environmental solutions to cities, businesses, campuses and industries

QUESTIONS?