Daniels

PROMOTING COMBINED HEAT AND POWER – A LOCAL PERSPECTIVENE-MW Coalition & EESI Briefing February 23, 2005: 

PROMOTING COMBINED HEAT AND POWER – A LOCAL PERSPECTIVE NE-MW Coalition & EESI Briefing February 23, 2005 Tim Daniels Tdaniels@nycedc.com 212-312-3770

Outline: 

Outline About the New York City 2004 Energy Policy Task Force Task Force Findings Electricity Resource Needs Through 2008 Electricity Resource Options Task Force Recommendations Why Combined Heat and Power? Initiatives & Challenges

NYC Energy Policy Task Force Members: 

NYC Energy Policy Task Force Members

Current Electricity Resource Picture: 

Current Electricity Resource Picture   Findings - Current Situation

Slide5: 

Findings - Limited Transmission Capacity

Findings - Electricity Resource Need Through 2008: 

Findings - Electricity Resource Need Through 2008 * * Assumes that 1/3 of the total capacity of plants over 45 years old will be retired in the next 5 years.

Findings - Energy Resource Options: 

Traditional Measures Power plants certified for construction = 1,562 MW (minus retirements) Transmission lines certified for construction = 550 MW Alternative Approaches Energy efficiency & combined heat and power potential = 1,038 MW Findings - Energy Resource Options Fact: The New York City area has approximately 3,276 MW of technical potential for CHP – New York State Energy Research & Development Authority Market Potential Report UTC Fuel Cell

Summary of Task Force Recommendations: 

The Energy Policy Task Force arrived at 28 specific recommendations in the following 4 areas: Energy Supply - generation, transmission and gas pipelines Energy Delivery - electric, gas and steam distribution system Distributed Resources - energy efficiency, combined heat and power, and peak load management New York City/Leading by Example - energy efficiency, combined heat and power, high-performance building design and peak load management Summary of Task Force Recommendations

Secondary Reasons for Supporting CHP: 

Secondary Reasons for Supporting CHP Limited Space – No room for new infrastructure! Reliable Power – NYC’s 24-hour high-tech and financial services oriented economy requires extremely high reliability Air Quality – Clean Air Act non-attainment zone Public Safety – Basic City functions (subway, elevators, etc) Power Quality – Not a problem Capstone Microturbine

Primary Reason for Supporting CHP –Economic Development: 

Primary Reason for Supporting CHP – Economic Development Providing businesses with the option of installing their own clean generation is an extremely valuable economic development tool. Highest electric prices in continental 48 Record high natural gas prices Customized energy for special needs of businesses (e.g., hospitals, manufacturing, banking, data center, etc)

Where Incentives Lead……Markets Follow: 

Where Incentives Lead……Markets Follow Bank of America Tower - CHP New York Times Tower – Considering CHP World Trade Center Redevelopment – Considering CHP All major City Rezoning Areas – Considering CHP New York is a Leading CHP Market Solar Turbine

Combined Heat and Power Initiatives: 

Combined Heat and Power Initiatives Create special gas and electric utility rates for CHP Create tax-exempt financing vehicles for CHP Streamline interconnection process with utility grid Lead by example by installing CHP in City facilities Eliminate utility financial disincentives for CHP Link economic incentives to the use of CHP Seek out applications in target facilities including health care, manufacturing, residential and educational sectors. Note: Barriers still exist that prevent a competitive market for CHP from fully developing

NYC Energy Policy is available online:: 

NYC Energy Policy is available online: www.nyc.gov/html/om/pdf/energy_task_force.pdf