1. Easing the Integration of Intermittent Renewables with Combined Heat and Power Kyle Siler-Evans RenewElec Workshop, 2010

2. The Problem Fluctuations in intermittent renewables must be balanced with fast-ramping resources. – Adds cost and emissions 1

3. The Problem: Reduced Emissions Performance Source: Katzenstein et al., 2009 2

4. The Problem: Added Cost Cost 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 3

5. Outline Balancing Intermittent Resources with CHP Encouraging Privately Owned Resources to Support the Grid Spurring Adoption of CHP 4

6. Combined Heat and Power Conventional Generation 5

7. Why CHP? Source: Adapted from EPA, 2008 6

8. Why CHP? Source: Adapted from EPA, 2008 7

9. Example Scenario: Oversize industrial CHP Source: Adapted from EPA, 2008 8

10. Example Scenario: Use excess capacity from underutilized CHP 9

11. ~100 GW installed In U.S. Example Scenario: Use excess capacity from underutilized CHP 10

12. 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? 11

13. Outline Balancing Intermittent Resources with CHP Encouraging Privately Owned Resources to Support the Grid Spurring Adoption of CHP 12

14. 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. 13

15. Regulation Market Prices Source: PJM 2008 market data 14

16. Research Objectives Evaluate existing opportunities for demand- side resources to participate in regulation services. Designing new mechanisms for DSR participation where necessary. 15

17. Outline Balancing Intermittent Resources with CHP Encouraging Privately Owned Resources to Support the Grid Spurring Adoption of CHP 16

18. Making CHP More Attractive 17

19. 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. 18

20. Thank You Question? 19