Richard Damecour, FVB Energy Inc.
Richard Damecour, FVB Energy Inc.
Richard Damecour, FVB Energy Inc.
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Combined Heat and Power<br />
Workshop<br />
CHP and MUSH<br />
<strong>Richard</strong> <strong>Damecour</strong><br />
<strong>FVB</strong> <strong>Energy</strong> <strong>Inc</strong>.<br />
April<br />
2013
<strong>FVB</strong> <strong>Energy</strong> <strong>Inc</strong>.<br />
‣ <strong>Richard</strong> <strong>Damecour</strong>, P.Eng., MBA,<br />
CEO<br />
‣ Consulting firm specializing in<br />
Community <strong>Energy</strong> & CHP.<br />
‣ A global l district i t energy firm with<br />
offices in Sweden, the U.S. and<br />
Canada.
Small Scale Generation<br />
‣ Less Than 5 MW<br />
‣ Imbedded in the Municipal Grid<br />
‣ Typically Natural Gas Fired<br />
Reciprocating Engines
Cogeneration - 3 Key Issues<br />
‣ THERMAL FIRST<br />
‣ ELECTRICAL INTERCONNECTION<br />
‣ CONTRACT FOR ELECTRICTY
8,761<br />
8,388<br />
8,010<br />
7,635<br />
7,135<br />
120%<br />
100%<br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
Boilers<br />
Thermal First<br />
CHP<br />
2,885<br />
3,264<br />
3,760<br />
4,635<br />
4,135<br />
5,010<br />
5,460<br />
5,885<br />
6,260<br />
6,760<br />
Hours<br />
2,010<br />
2,510<br />
760<br />
336<br />
1,635<br />
1,135<br />
0<br />
Capacity
Connection Process is Still Onerous<br />
‣ Getting Better as Utilities Gain<br />
Experience in Dealing With<br />
Connections<br />
‣ Many Now Have Published<br />
Connection Requirements based<br />
on Distribution Code<br />
‣ Small Utilities Have Banded<br />
Together & Obtained The<br />
Experience
INITIAL<br />
CONSULTATION<br />
CONNECTION<br />
IMPACT<br />
ASSESMENT<br />
LDC<br />
CONNECTION<br />
COST<br />
ESTIMATE<br />
HYDRO ONE<br />
IESO<br />
DESIGN<br />
&<br />
BUILD<br />
CONNECT,<br />
OPERATE<br />
& MAINTAIN
Potential Electricity Cost Avoidance<br />
ITEM<br />
<strong>Energy</strong> Charge<br />
Transmission<br />
Network<br />
Transmission<br />
Connection<br />
Wholesale Market<br />
Services<br />
Debt Retirement<br />
Distribution Charge<br />
Distribution Losses<br />
AVOID<br />
YES<br />
YES<br />
NO<br />
YES<br />
NO<br />
NO<br />
YES
Potential Electricity Cost Avoidance<br />
CHARGE<br />
AMOUNT<br />
HOEP $33<br />
Global Adjustment $50<br />
Transmission Network* $7 /MWh<br />
Wholesale Market Services $6 / MWh<br />
Distribution Losses (4%)* $3 /MWh<br />
Total $99 /MWh
Durham College - UOIT<br />
‣ Durham College Established in 1967<br />
‣ 5,000 Full Time Students<br />
‣ University of Ontario Institute of<br />
Technology Established in 2005<br />
‣ 5,000 Full Time Students
Durham College - UOIT
Positive Attributes of Durham<br />
College as a CHP Host<br />
‣ High Quality Host<br />
‣ Uses Low Quality <strong>Energy</strong><br />
‣ Behind The Meter<br />
‣ Site Control
UOIT/Durham College CHP<br />
Take or Pay Versus Heat Demand<br />
2,500<br />
h<br />
MWh per Mont<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Summary of Risk Mitigation<br />
Risks<br />
Mitigation<br />
Thermal Load<br />
Take or Pay Contract<br />
Equipment Failure<br />
Proven Technology<br />
Equipment Guarantees<br />
O/M Contract<br />
Project Cost Overrun<br />
Contingencies<br />
i<br />
Site Control<br />
Gas Price Hedging:<br />
Match of Purchases to<br />
Consumption<br />
Contract With Marketer
Durham College Benefits<br />
‣ 78% of Natural Gas<br />
Consumption Eliminated<br />
‣ $200K in Projected Savings<br />
‣ 2.3 MW of Secure Supply<br />
‣ Environmentally Beneficial
Barriers for MUSH Sector<br />
‣ Slower Decision Making<br />
‣ Dollars for Capital<br />
‣ Dollars for Studies<br />
‣ Revenue Uncertain<br />
‣ Gas Cost Uncertain<br />
‣ Connection Process Onerous<br />
‣ Facility Managers Authority<br />
‣ Perception of Ugly Facility<br />
‣ Fear of Technology
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