Sustainable & Cost-Effective Planning with District Energy

69th Annual KU Environmental

Engineering ConferenceAir, Waste & Energy Management

April 17, 2019

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Cities Provide Sustainability Opportunities

► Cities continue to

grow and

agglomerate

► Population density

provides opportunity

• Geography

• Scale

• Resources

• Challenges

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Cities Provide Sustainability Opportunities

Source: World Bank - Cities and Climate Change: An Urgent Agenda, Part III Cities’ Contribution to Climate Change

► Sustainable – Environmental Benefit and Repeatable

► Three “Big Picture” Considerations

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Sustainable and Cost Effective Planning

Financial Management

Environmental Stewardship

Operational Excellence

• Construction Cost

• Operations Cost

• Energy Costs

• GHG Emissions

• Pollutants

• Water Usage

• Materials

• Energy Efficiency

• Operations

• Maintenance

• Control

• Cost of Service

• Life Cycle Cost

► Distribution of energy within a defined location to points of use.

► Utilities – Mechanical, Electrical and/or Civil

► Consists of:

• Production Source – Central Plant(s)

• Distribution Network

• Consumer Interconnection

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What is District Energy?

The Pros

► Reduced Amount of Equipment

• Load Coincidence

► Increase Building Usable Space

► Lower Long Term Installed Cost

► Centralized O&M

► Reduced Operating Personnel

► Higher Efficiency

► Lower Operating Cost

► Environmental Benefits

• Emissions, Water, Noise

► Change to System Effects Everything

The Cons

► Upfront Capital Investment

► Require Forward Planning

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District Energy – Pros and Cons

► Energy Planning

• Define the Bridges from the Current System along

a roadmap to the Future System.

► Why: To Meet Goals

• Growing Service Needs

• Aging Infrastructure

• Improve Efficiency / Life Cycle Costs

• Emissions Reduction

• Improve Redundancy & Reliability

• Land and Space Allocation

• Budget Planning

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District Energy – How do we get it?

► Goal Setting

► Team Building

► Data Gathering

► Option Definition

► Analysis

► Vision Setting

► Best Practices

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District Energy – Energy Planning

► Define the Goals

• Capacity, Reliability, Efficiency

• Environmental Impact

• Expandability / Flexibility

• Duration of Look Ahead

• Operational, Fuel, & Utility Market

• Technology Opportunities

• Integration – Production, Distribution, & Consumption

• Capital Funding Roadmaps

► Define Metrics for Success

• Lowest First Cost, Highest Efficiency, Lowest MTCO2e, Life Cycle Cost

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Energy Planning - Goal Setting

► Define the Team

• Internal Stakeholders

• External Stakeholders

• Decision Makers

► Right Team w/ Right Experience

► Experience Mix

• Financial (Finance, Cost Estimating)

• Technical (Operators, Engineers, Architects, Construction)

• Environmental (Permitting, Sustainability)

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Energy Planning – Team Building

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Energy Planning – Data Gathering

It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.

― Arthur Conan Doyle, Sherlock Holmes

“ “

► Data and Documents

• Load Data, Operations Information

• Engineering Drawings

• Equipment Data

• Financial Data (Budgets, Bills)

► Stakeholder Interviews

► Condition Assessments

• Remaining Life

• General Condition

• Deferred Maintenance

• Plants and Distribution Systems

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Energy Planning – Data Gathering

► Identify the potential solutions

• Plant Locations

• Infrastructure Expansions / Modifications

• Energy Sources Available (Fuel, Power)

• Heating Technology (Steam, Hot Water)

• Cooling Technology (Chillers, Evaporators)

• Combined Heat and Power

• Energy Efficiency Upgrades

• Thermal or Battery Energy Storage

• Renewables (Solar, Wind, Biomass, Geothermal)

• Grey Water Systems

• Distribution System Options

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Energy Planning – Define the Options

But rarely when it comes to big

energy challenges.

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Energy Planning – Define the Options

Silver bullets do exist.

Keep an open mind:

Complex problems can require

complex solutions.

► Scope Definition

• Engineer & Architecture Design

• Level of Detail

► Cost Estimating

• Construction Costs

• Operation & Maintenance Cost

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Energy Planning – Analysis

► Performance Estimating

• Production Performance

• Distribution System Capabilities

• Emissions Impact

• Mass, Water, Thermal Balances

► Interdependence

• Outside air temperature

• Changing point of use requirements

• Cogeneration systems

• Energy storage

• Water use considerations

• Plant impacts vs Building impacts

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Energy Planning – Analysis

► Financial Modeling

• Simple Payback

• Life Cycle Cost

► Discounted Cash Flow

► Future Energy Costs

• Can be a “research" project

• US Energy Information Association (EIA)

• Energy correlation considerations

• Sensitivity analysis can mitigate

► Sensitivity Analysis

• Deterministic or Probabilistic

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Energy Planning – Analysis

► Results Work Session

• Results not equal to Recommendations

► Objectives Being Met?

► Strategy Roadmap

• Identify trigger points

► Communication to Stakeholders

• Performance

• Green House Gas (GHG) Wedges

• Life Cycle Cost

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Energy Planning – Vision Setting

► Make the “Reservations” for the future

• Utility Plant Locations

• Purchased Utilities – Fuel, Water, Power

• Generated Utilities – Thermal, Power

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Energy Planning – Vision Setting

► Think Big Picture and Long Term.

► Identify your “A-Team”

► Dig in on getting the Right Data.

• Garbage In = Garbage Out

► Keep sight of Objectives and make decisions with Data.

► Consider placing financial value to operational and

environmental objectives.

• What cost could be incurred if we don’t meet the goals?

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Energy Planning – Best Practices

► Initiatives

• U.S. DOD Energy Resilience Initiative

https://www.acq.osd.mil/EIE/IE/FEP_Energy_Resilience.html

• District Energy in Cities Initiative

http://www.districtenergyinitiative.org/

• C40 Cities

https://www.c40.org/

► Associations / Agencies

• International District Energy

• International Energy Agency

• ASHRAE

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Industry News

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Questions and Answers

Christopher Bowman, PEManager, OnSite Energy & Power Burns & McDonnellDirect: 816-447-9953Email: cbowman@burnsmcd.com