AEP Ohio Combined Heat and Power and Waste Energy Recovery Program
Energy Utilization in the Utility Sector Source: http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_report_12
CHP: A Key Part of Our Energy Future • Form of Distributed Generation (DG) • An integrated system • Located at or near a building/facility • Provides at least a portion of the electrical load and • Uses thermal energy CHP provides efficient, for: – Space Heating/Cooling clean, reliable, affordable – Process Heating/Cooling energy – today and for the – Dehumidification future
Defining Combined Heat and Power (CHP) The on-site simultaneous generation of two forms of energy (heat and electricity) from a single fuel/energy source
CHP System Schematic
Common CHP Technologies and Generating Capacity Ranges
What Are the Benefits of CHP? • CHP is more efficient than separate generation of electricity and heat • Higher efficiency translates to lower operating costs • Higher efficiency reduces emissions of all pollutants • CHP can also increase energy reliability and enhance power quality
CHP is Used Nationwide in Several Types of Buildings 81 GW installed at > 4,300 sites Avoids 241M tons of CO2 each year
CHP Today in Ohio 527 MW of installed CHP at • over 59 industrial and commercial facilities Primary Metals comprises 226 • MW of CHP capacity
AEP Ohio’s CHP Program AEP Ohio is offering incentives to customers for eligible CHP projects AEP Ohio business customers Targeting Industrial, Institutional and Commercial
Ohio Law states what systems can receive an incentive As Defined by SB 310 • Combined Heat and Power is “the coproduction of electricity and useful thermal energy from the same fuel source…” – “…designed to achieve thermal-efficiency levels of at least sixty percent” – “…with at least twenty percent of the system's total useful energy in the form of thermal energy”* *Source legislature.state.oh.us
AEP Ohio CHP Program Incentives • Incentive rate – 3.5 cents per Net kWh generated in the 1 st year • Payment may be split over 1 to 5 years Systems > 1000 kW • Incentive rate - 5 cents per Net kWh generated in the 1 st year • Payment period of 1 year Systems < 1000 kW • $400,000 cap per project per year Caps
Current Projects 2 projects have completed Increasing interest in CHP technology 2 projects are in the 12- month metering period Projects total 4 projects are under 302,000,000 kWh construction generated 3 projects are pending annually application completion
AEP Ohio CHP Program Process Complete Approval Payment Application Process Payment completed within Plan period will NOT be filed with Incentive Commission AEP Ohio and payments begin customer after 12 months complete and of meter Payment NOT sign application readings. completed within Plan period will be filed for PUCO approval
CHP Project Development Steps Visit our website at aepohio.com/solutions for a free screening
Project Snapshot Lima Wastewater Treatment Plant Lima, Ohio Application/Industry: Wastewater Treatment Capacity (MW): 130 kW Prime Mover: Microturbines Fuel Type: Biomass Thermal Use: Heat for the Digestion Process Installation Year: 2012 Testimonial: The CHP project was determined to provide: Best avenue for reductions of V.O.C.;s • Best return of electrical energy • Best capture of the heat for use in the • WWTP https://www.puco.ohio.gov/industry-information/industry-topics/combined-heat-and-power-in- ohio/chp-case-studies-voices-of-experience-workshop-june-20-2012/#sthash.MRLZAQNR.dpbs
Project Snapshot Solvay Specialty Polymers Marietta, Ohio Application Industry: Chemical Manufacturing CHP Capacity (MW): 100% of steam needs and 97% of electrical load Fuel Type: Natural Gas Thermal Use: Process Heat Installation Year: 2015 Testimonial: “We landed in a much better place than where we started.” Value Added Reduced energy cost; - Alan Wanosky, Operations Manager, Solvay Specialty Increase in reliability of steam Polymers and energy sources; Economic development
Program Information Michelle Cross PE, CEM, PMP Engineer Principal, EE/PDR AEP Ohio Business Programs mcross@aep.com 330-438-7028 Annual Program Budget is $2,500,000 per Settlement Exhibit Visit our website at aepohio.com/solutions JFW-2
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