the electrical contracting foundation

THE ELECTRICAL CONTRACTING FOUNDATION

Energy Securityand theElectrical Contractor

Thomas E. Glavinich, D.E., P.E.Associate ProfessorThe University of Kansas

2004,The Electrical Contracting Foundation, Inc.All rights reserved.

This paper is a summary of Foundation research up to 2004. It is updated and revised from a paperpresented by Electrical Contracting Foundation President Russell J.Alessi at a meeting of the EuropeanAssociation of Electrical Contractors (AIE) in September 2003.

PRESIDENTS COUNSEL$1,000,000 or more

Albert G. WendtCannon & Wendt Electric Co., Arizona

Richard W. McBrideSouthern Contracting Co., California

National Electrical Contractors Association

Square D/Schneider Electric

PROGRAM GUARANTOR $500,000 or more

The Okonite Company

DIPLOMAT$350,000 or more

Electrical Contractors Trust of Alameda County

REGENTS $250,000 or more

Contractors

John R. ColsonHouston, Texas

Robert E. Doran III Capital Electric Construction, Kansas,

In memory of Robert E. Doran, Jr.

Chapters and Affiliates

Northeastern Illinois Chapter, NECA

Northern Indiana Chapter, NECA

San Diego County Chapter, NECA

Southeastern Michigan Chapter, NECA

Manufacturers

ACCUBID

Eaton Electrical

Estimation

McCormick Systems

GOVERNORS $150,000 or more

Contractors

Arthur Ashley Ferndale Electric Co., Michigan

Clyde JonesCenter Line Electric, Inc., Michigan

Michael LindheimSchwartz & Lindheim, California

Richard R. Pieper, Sr.PPC Partners, Inc., Wisconsin

James A. RanckJ. Ranck Electric, Inc., Michigan

Dan Walsh United Electric Co., Inc., Kentucky

Chapters

Illinois Chapter, NECA

Kansas City Chapter, NECA

Los Angeles County Chapter, NECA

Manufacturer

Thomas & Betts Corporation

i

ENERGY SECURITY AND THE ELECTRICAL CONTRACTOR

E L E C T R I 2 1 C O U N C I LThe Electrical Contracting Foundation, Inc.

As of August 10, 2004

FOUNDERS $100,000 or more

Manufacturers and Distributors

Advance Transformer/Philips Lighting

Crescent Electric Supply Company

Graybar

Greenlee Textron

Ruud Lighting

Thomas Industries

Utility

San Diego Gas & Electric

Contractors

Ted C. AntonNewkirk Electric Associates, Inc., Michigan

H. E. Buck AutreyMiller Electric Co., Florida

Ted N. BakerBaker Electric, Inc., California

D. R. Rod Borden, Jr.Tri-City Electric Co., Inc., Florida

Daniel Bozick Daniels Electrical Construction Company, Inc.,

California

Richard L. BurnsBurns Electric Company, Inc., New York

Larry CogburnCogburn Bros. Electric, Inc., Florida

Michael CurranRed Top Electric Company Emeryville, Inc., California,

In honor of George T. and Mary K. Curran

Ben DAlessandroL.K. Comstock & Co., Inc., New York

Bruce DavisFisk Electric Co.,Texas

Gene W. DennisUniversal Systems, Michigan

William T. Divane, Jr. Divane Bros. Electric Co., Illinois,

In memory of William T. Divane, Sr. and Daniel J. Divane III

FOUNDERS, CONTINUED

Contractors

Rodney Egizii EEI Holding Corporation, Illinois

Randy Fehlman Gregg Electric, Inc., California

Whitworth Ferguson, Jr.Ferguson Electric Construction Co.,

New York

Rex A. FerryValley Electrical Consolidated, Inc., Ohio

John F. Hahn, Jr.Peter D. Furness Electric Co., Delaware

Eddie E. HortonDallas, Texas

Mark A. HustonLone Star Electric, Texas

Thomas G. IspasDaniels Electrical Construction Company, Inc.,

California

Robert JesenikChristenson Electric, Inc., Oregon

James R. Kostek Kelso-Burnett Company, Illinois

Michael KwiatkowskiR. W. Leet Electric, Inc., Michigan

Donald W. Leslie, Sr.Johnson Electrical Construction Corporation, New York

Richard J. Martin Motor City Electric Co., Michigan

Roy C. Martin, Jr.Triangle Electric, Michigan

Edward C. MattoxInland Electric Corporation, Illinois

James C. Mc AteeElectric Power Equipment

Company, Ohio

Timothy McBrideSouthern Contracting Co., California

Edward T. McPhee, Jr. McPhee, Ltd., Connecticut

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FOUNDERS, CONTINUED

Contractors

James B. Morgan, Sr. Harrington Electric Co., Ohio

Joel MorynParsons Electric Company, Minnesota

Jerrold H. NixonMaron Electric Company, Illinois

To honor Morris Nixon and Barney Nixon

Walter T. Parkes OConnell Electric Co., New York

Glenn Patterson Oregon Electric Construction, Oregon

Skip PerleyTEC-Corp/Thompson Electric Co., Iowa

In memory of Alfred C. Thompson

Robert L. PfeilSouth Bend, Indiana

Carl J. Privitera, Sr.Mark One Electric Company, Inc., Missouri

Dennis QuebeChapel Electric Company, Ohio

Stephen J. Reiten M. J. Electric, Inc., Michigan

Frank RussellBagby & Russell Electric Co., Alabama

In memory of Robert L. Russell

Frederic B. SargentSargent Electric Co., Pennsylvania

Rocky SharpCarl T. Madsen, Inc., Washington

Larry D. SheetsPrichard Electric Co., West Virginia

Turner Smith Dillard Smith Construction Co., Tennessee

Herbert Spiegel A tribute in memory of Flora Spiegel, Corona

Industrial Electric, California

Greg E. Stewart Superior Group, A Division of Electrical Specialists

Ohio

Robert F. TiplerHunt Electric Corporation, Minnesota

FOUNDERS, CONTINUED

Contractors

Ronald J. ToomerToomer Electrical Co., Inc., Louisiana

Robert W. Truland Truland Systems Corporation, Virginia

Robert J. Turner II Turner Electric Service, Inc., Michigan

Michael H. Walker Walker Seal Companies, Inc., Virginia, In honor of

Michael H. Walker and Frank W. Seal

Jack W. WelbornElectrical Corporation of America, Missouri

David A. WitzContinental Electrical Construction Co., Illinois

NECA Chapters and Affiliates

ACEN NECA Monterrey (Mexico) AMERIC Foundation (Mexico)

Arizona Atlanta Boston

Central Indiana Central Ohio

Chicago & Cook County Greater Cleveland

MichiganMilwaukee

NECA ACOEO Guadalajara (Mexico)New York City

North Central OhioNorth Texas

Northern CaliforniaNorthern New Jersey

Oregon-ColumbiaOregon Pacific-Cascade

Penn-Del-JerseySan Francisco

Santa Clara Valley South Florida

Western Pennsylvania

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Introduction

A reliable and economical electric power supplyis critical to continued economic growth and pros-perity in the United States. Throughout most of the20 th century, regulated U.S. electric utilities builtmuch needed generating plants along with trans-mission and distribution lines to meet the growingdemand for electric power. In recent years, envi-ronmental, regulatory, financial, and other con-straints have restricted utility expansion or made ituneconomical. This has led to power shortages,disruptions, and utility scheduled load reductions(brownouts) in some parts of the country.

These same constraints have also caused con-cern about the reliability of the electric utility sup-ply. Energy security in the U.S. extends beyondconcern about our continued reliance on foreignoil and includes the adequacy and vulnerability ofour electric power supply. Recent events includingthe massive North American blackout on August13, 2003 followed by blackouts in London andparts of Southeast England two weeks later,demonstrate the vulnerability of the electric powersupply and the need to address issues impactingour energy security.

The electrical contractor will play a key role inassuring that the U.S. will have an adequate andreliable electric power supply in the future. Asemerging small-scale generating technologies suchas fuel cells, photovoltaics, microturbines, and oth-ers become economically viable, there will be ashift from the traditional central power plant tolocal distributed generation (DG). These small-scale generation technologies will be incorporatedinto commercial, industrial, and institutional (CII)buildings to meet the increasing demand for elec-tric power. In addition, state-of-the-art buildingcontrol and automation systems will also result inincreased CII building efficiency thereby reducingthe demand on the utility grid. This paper discuss-

es the important role that these technologies andthe electrical contractor will play in ensuring asecure U.S. electric power supply in the 21 stCentury.

Energy Security

The U.S. economy and the well being of its citi-zens depend upon an adequate and steady supplyof economical energy. The U.S. Department ofEnergy (DOE) projects a 40 percent increase inU.S. energy consumption during the first quarterof the 21 st century, rising from 97.3 quadrillionBritish thermal units (Btu) in 2001 to 139.1quadrillion Btu by 2025. DOE expects total energyconsumption to increase more rapidly than domes-tic production over the next two decades, requiringincreased energy imports to meet growingdemand.

In 2001, petroleum imports, including bothcrude oil and refined products, accounted for 55percent of U.S. demand. Predictions are that, by2025, petroleum imports will meet 68 percent ofU.S. demand an increased dependence uponimported petroleum of about 24 percent. Similarly,the U.S. dependence on imported natural gas willalso increase in the coming decades despite indomestic natural gas production. Natural gasimports met 16 percent of total U.S. demand in2001 and this percentage is expected to grow to 22percent of demand by 2025. This 38 percentincrease in dependence on imported natural gasover the coming decades will be met by pipelinesfrom Canada and Mexico and liquefied natural gas(LNG) from other parts of the world.

The growing dependence on imported energycontinues to represent a major risk to the U.S. andmakes its economy vulnerable to events outside itscontrol and beyond its borders. Disruption of theenergy supply anywhere along the supply chainwould have a devastating impact on the U.S. econ-

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omy. Reduced production capacity resulting fromthe physical destruction of production and trans-mission facilities either by accident, natural disas-ter, or terrorism or the curtailment of productionfor political or economic reasons would have aserious impact on the U.S. The U.S. recognizesthat it must reduce its dependence upon importedenergy as well as protect the environment whileensuring that it has the energy needed at a reason-able price to maintain quality of life and keepproducts and services competitive in the worldmarket.

The Increasing U.S. Demandfor Electric Energy

The demand for electric energy in the U.S. ispredicted to grow at a rate of 1.8 percent per yearbetween 2001 and 2025. This results in a totalincrease in demand of about 53 percent over this24-year period (DOE 2003). In the residential andcommercial sectors, the growing demand for elec-tric energy will result from the projected increasesin the number of households, commercial floorspace, and the use of personal computers, telecom-munications equipment, appliances, and other elec-trical equipment. Increased production will impactthe growth of industrial electric energy demand. Inall sectors, DOE projects that the demand for elec-tric energy will be greater than the reductionsachieved from increased energy efficiency andconservation.

DOE predicts (2003) that about 428 gigawatts ofelectric generating capacity will be needed to meetthe growing demand for electricity and replaceretired generating units. A gigawatt is one billion(10 9 or 1,000,000,000) watts or the equivalent ofpowering 10 million 100-watt incandescent lightbulbs at one time. DOE projects that 80 percent ofthis new generating capacity will be fueled by natu-ral gas. This means that the natural gas share of

electricity production will increase from 17 percentin 2001 to 29 percent in 2025. Conversely, coal-fired generation will decrease from its current 52percent of U.S. generating capacity in 2001 to 47percent in 2025. No new nuclear plants are expect-ed to be constructed in the U.S. over the next sever-al decades due to safety, environmental, and costconcerns. Oil-fired power plants will continue torepresent a negligible amount of generating capaci-ty. The increase in natural gas fired generatingcapacity is a significant factor in the need toincrease natural gas imports as well as the projectedincrease in natural gas prices.

Grid Lock

The ability to locate generating stations inremote areas and to move large blocks of powerinto urban areas via high-voltage transmissionlines resulted in the central plant concept. The cen-tral plant allows utilities to take advantage ofeconomies of scale and minimizes fuel transporta-tion costs by locating generating stations near thefuel source. The central plant concept dominatedutility planning for most of the 20 th century.However, environmental concerns and legislationare having an impact upon the size, location, andeconomic viability of large power plants.

These factors also affect the ability to build newtransmission lines to provide needed power tourban load centers and interconnections to increasethe reliability of the power supply. Even thoughthe generating capacity is available, it may not bepossible to deliver this electric power where it isneeded because of lack of capacity in the transmis-sion infrastructure. In order to ensure an adequate,economical, and reliable power supply to theirfacilities, owners are increasingly considering theuse of on-site generation to protect the business,reduce operating costs, and avoid losses resultingfrom brownouts and blackouts.

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Recent Events

Recent events in North America and Englandillustrate the fragility of the traditional power sup-ply and the need for energy suppliers and facilityowners to take steps to improve power supply reli-ability. As businesses continue to globalize, theybecome increasingly dependent on sensitive elec-tronic systems for production and communicationwith customers.

Concurrently, the need for power qualityincreases. Power disturbances like the major out-ages that occurred in August result in lost revenueand lost customers and can threaten the viability ofa company.

North American Blackout

At approximately 2:00 p.m. (1400) EasternDaylight Time on Thursday, 14 August 2003, FirstEnergy Corporations Eastlake coal-fired powerplant in northern Ohio shut down unexpectedly.This was followed by the opening of five transmis-sion lines between the time that the plant shut downand 4:06 p.m. EDT (Fialka, 2003). Two more trans-mission lines opened at 4:09 p.m. and electricallyisolated northern Ohio which represents about 20percent of Detroit Edisons load from Michigan. At4:10 p.m., transmission ties in Michigan opened andthe normal flow of power around Lake Eriereversed pulling power from New York and Ontariothrough Michigan. Within the next 46 seconds,Michigan power plants dropped off line. This trig-gered a chain of events that plunged almost theentire Northeastern United States and Ontario,Canada into darkness by 4:30 p.m. (Speed, 2003).

The outage impacted 50 million people in eightstates and one province. The exact causes of thismassive outage are not yet known. Nevertheless, itillustrates the weaknesses of the electric powersupply which are not just technical but also regula-tory, organizational, and financial.

London Blackout

Following the North American blackout, theNational Grid Transco PLC (NGG), the power sys-tem operator for England and Whales, stated that ablackout similar to the one that had hit theNortheastern United States and Ontario, Canadawould not happen there (Talley, 2003). However,two weeks later on Thursday, 28 August 2003, atabout 6:20 p.m. GMT, London and SoutheastEngland were struck by the worst power outage insixteen years (Roberts, 2003). Preliminary investi-gations indicate that the outage was a freakoccurrence resulting from a double fault. A sub-station transformer was removed from service atabout 6:20 p.m. as a result of an alarm that indi-cated the possibility of an internal fault interrupt-ing one line serving the affected area. This wasfollowed seven seconds later by an actual fault ona 275 kV underground transmission cable thatinterrupted a second line serving the affected area.

These two seemingly unrelated occurrences trig-gered the blackout. Even though power wasrestored about 34 minutes later, the blackout para-lyzed London at the height of the evening rushhour and impacted the affected areas for hours afterpower was restored. Not only was business broughtto a halt by the outage but also 500,000+ com-muters were trapped on stalled Underground andmainline trains and traffic was stopped when trafficsignals and roadway lighting went out (Lee, 2003).

Electrical Contractors Rolein Energy Security

The electrical contractor will play a key role inensuring a secure energy future for the U.S. Overthe past century, electrical contractors have beeninstrumental in the electrification of the U.S.Using their knowledge, skills, and ingenuity, elec-trical contractors have constructed and maintained

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the power supply and delivery systems that serveboth metropolitan and rural areas. Electrical con-tractors have also installed and maintained safeand reliable distribution systems within commer-cial, industrial, residential, and community facili-ties.

Achieving energy security in the U.S. willrequire not only the development of new technolo-gies but also the integration of these technologiesinto the existing infrastructure. Many technologiesare still on the drawing board or in the prototypestage. As new technologies are developed andbecome commercially viable, the electrical contrac-tor will need to understand their operation andtechnical requirements, how they can benefit theowner, and how they can be most efficientlyinstalled and used. In the coming decades, the elec-trical contractors role will expand from being asystem installer to becoming a systems integrator.

Meeting Future Demand forElectrical Energy

There are only three options available to meetthe growing demand for electrical energy in theU.S.: produce more, use less, or a combination ofthe two. There is nothing new about these optionsfor addressing the growing demand for electricalenergy. For much of the 20 the century, the U.S.met demand for electrical energy by building morepower plants and transmission lines. However, theenergy crises of the 1970s, concern about the safe-ty of nuclear power, environmental issues and con-straints, and shifts in the publics attitude towardelectric utilities and regulation changed thisapproach. During the latter part of the 20 th centu-ry, the focus shifted to energy conservation andincreased efficiency as the means to reduce energyconsumption and reduce the need to build morepower plants and transmission lines.

Despite best efforts, the need for electrical energybegan to outstrip the ability to produce and distrib-ute it reliably and economically. As a result, someareas of the U.S. experienced systematic powerinterruptions and voltage reductions (brownouts)that moved from area to area. At the same, time,deregulation of the once highly regulated U.S. utili-ty industry was changing the economics and opera-tion of the electric industry. Economies of scale thatonce favored large, central, coal-fired and nuclearpower plants began to shift toward smaller, natural-gas fired units that were cleaner, easier to site, andtook much less time to move from design to opera-tion. To illustrate this, there were 144 gigawatts ofelectric generating capacity added between 1999and 2002 in the U.S. which was composed of 138gigawatts of natural-gas fired generation, about 5gigawatts of renewable energy generation made upmainly of wind generation, and 1 gigawatt of coal-fired capacity (DOE 2003).

Energy security cannot be achieved in the U.S.by conservation and energy efficiency alone. Thedemand for electric energy is growing at a fasterrate than technologys ability to reduce demandthrough increased efficiency and conservation.Demand for electrical energy cannot be artificiallycapped through government restrictions or taxeswithout seriously impacting economic growth andthe quality of life in the U.S. However, construct-ing new generating capacity using indigenous fuelsources such as coal and nuclear results in environ-mental concerns. This leaves a two-prongedapproach to energy security that involves both theconstruction of new generating capacity and thecontinued reduction of demand through conserva-tion and energy efficiency. The key to achievingenergy security while simultaneously meeting theneed for electrical energy is the continued develop-ment and application of new technologies. In par-ticular, there is a continuing trend toward distrib-uted generation using advanced small-scale gener-ating technologies and building system integrationincluding intelligent building materials.

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Distributed Generation

Locating small-scale electric generating units ator close to the load served is referred to as distrib-uted generation (DG). These small-scale generat-ing technologies typically have generating capaci-ties of between 3 kilowatts (kW) and 10,000 kW.With distributed generation, individual buildingsand communities can each have its own powersupply. Distributed generation can either be stand-alone or integrated with the utility grid.

Distributed Generation & EnergySecurity

Distributed generation contributes to energysecurity by reducing dependence on large, remote-ly located generating stations that are tethered totheir load by transmission lines. By its very nature,distributed generation results in the electrical loadbeing met by small-scale electric generating facili-ties located at or close to the load served. As theamount of electrical load served by distributedgeneration increases, the vulnerability of completeor partial disruption of the electric energy supplyto an area due to natural disaster, accident, or ter-rorism is reduced because dependence on remotecentral generating stations and transmission anddistribution lines to supply the load is alsoreduced. With distributed generation the powersupply is located near or at the specific load that itserves.

Utility Distributed Generation Benefits

Utilities recognize the benefits of distributedgeneration and are installing small-scale generat-ing capacity wherever it is needed on their sys-tems. As noted previously, most of the generationinstalled since 1999 has been natural gas firedunits that are either combustion turbines used aspeaking units or combined cycle units that can beused as either base-load or peaking units. A peak-

ing unit is a generating unit used by utilities toproduce needed electric power during times ofpeak load. Combustion turbines are often used byelectric utilities as peaking units because they canbe quickly brought on line when needed and takenoff line when no longer needed. A combinedcycle unit is part of a multi-stage generating plantin which the waste heat from one or more gas tur-bines is used to produce additional electric powerby using a heat recovery steam generator (HRSG)which improves efficiency. These units are smallin comparison to a central plant and are modularso that they can be applied when and where need-ed. If demand in a particular locale exceeds thesupply in the area, it is much cheaper and easier tomeet that increased demand by adding new gener-ation at the load rather than adding central plantgeneration and transmission capacity.

Increasing power supply capacity is more thanjust adding generating capacity. To be useful,added central plant capacity must also be accom-panied by increased transmission and distributioncapacity. Distributed generation reduces the needfor additional central plant capacity, a factor thatneeds to be planned years in advance. It alsoreduces the need for additional transmission linecapacity and reduces operating costs including linelosses and ongoing maintenance. The DOE esti-mates that 9 percent of the power produced at acentral plant is lost in delivery. One utility esti-mates that is spends $1.50 to distribute power forevery $1.00 it spends to produce it. Small powerplants can be sited and approved close to new loadin a short time versus several years for transmis-sion line upgrades.

Benefits of distributed generation for utilitiesinclude:

Higher energy conversion efficiencies thancentral generation.

Improved power supply reliability. Reduced energy losses in transmission lines.

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Freeing up of transmission line capacity. Reduced or deferred transmission line and

substation upgrades. Less capital tied up in unproductive genera-

tion and transmission assets.

The modular nature of distributed generationmeans that capacity additions and reduction can bemade in small increments that are closely matchedwith demand rather than constructing large centralpower plants that are sized to meet estimatedfuture demand not current demand.

Owner Distributed Generation Benefits

Different types of facilities have different powerneeds. For example, health care facilities requirehigh reliability (back up) power and high powerquality due to sensitive electronic equipment.Computer centers need steady, high quality, unin-terrupted power. Industrial plants are concernedabout high energy bills and reliability. The benefitsof distributed generation for owners include:

Improved Power Quality Increased Power Availability Reduced Peak Demand Lower Energy Costs

Electrical Contractor Involvement inDistributed Generation

Most electrical contractors have been involved inthe distributed generation market for years but havenot realized it. The installation of an emergencygenerator to provide light and power for safety andrescue operations in the event of a power outage isan example of distributed generation. Similarly, theinstallation of an uninterruptible power supply(UPS) to protect against economic loss in the eventof power disruption to a data or telecommunica-tions center is also an example of distributed gener-ation. Even though these systems are very reliableand important to the business, neither offers an eco-

nomically or operationally viable alternative to theutility power supply. However, the electrical con-tractors knowledge and expertise in the selection,installation, and maintenance of these distributedgeneration systems provides a good foundation forassisting owners in successfully integrating emerg-ing small-scale generation technologies into specif-ic facilities.

Owners will need help in evaluating their powersupply needs, identifying alternative ways of meet-ing those needs, and selecting the power supplyoption that best meets those needs. When theselected power supply option includes on-site gen-eration using alternative power sources, the electri-cal contractor can assist owners in the selection,installation, and maintenance of the needed alter-native power source.

Distributed GenerationTechnologies

Advances in small-scale generation technology,coupled with growing environmental concerns, achanging energy market, evolving public policy, andcustomer need for a reliable and economical electricpower supply provide a new growth market for elec-trical contractors. Economical on-site electric powergeneration that was once practical only for largeinstitutional facilities, process plants, and heavyindustrial installations is rapidly becoming economi-cally viable for buildings of any size. Commercialand residential buildings along with smaller institu-tional, manufacturing, and light industrial facilitiescan all potentially benefit from integrating alterna-tive power sources with traditional utility service.

Alternative power sources have operating char-acteristics that make them very attractive to own-ers. They are typically compact, environmentallyfriendly producing negligible or no pollutants,quiet, and very reliable. As a result, these alterna-

6


tive sources can easily be integrated into theowners facility and, with the proper relaying, beoperated in parallel with the utility supply. In addi-tion, the initial cost of these alternative powersources is falling. Their operating efficiencies cou-pled with utility and government incentives makethem an economically viable alternative in someparts of the United States.

Utilities are using combustion turbines andcombined cycle plants. Reciprocating enginesincluding diesel generators have also been usedextensively to provide power to rural areas.However, a number of promising, environmental-ly-friendly technologies could have a significantimpact on energy security. New small-scale gener-ation technologies under development include:

Microturbines Fuel Cells Photovoltaics

Microturbines

Microturbines generate electricity with only onemoving part, making them very reliable. Both theturbine and the electric generator are mounted onthe same shaft, which rotates at a speed between60,000 and 100,000 revolutions per minute(RPM). The high frequency AC generated by themicroturbine is transformed into usable 60-Hertz(Hz) power using a solid-state power converter.Microturbines can operate on a variety of readilyavailable fuels including natural gas at efficienciesbetween 25 and 30 percent when generating elec-tricity alone. However, capturing waste exhaustheat and using it to displace energy that wouldotherwise have to be purchased can increase theefficiency of the overall system considerably.

Fuel Cells

Fuel cells have been around for many years.They found their first real application in the aero-

space program. Continuing research and develop-ment are increasing fuel cell efficiency and lower-ing first costs. This has resulted in fuel cell experi-mentation by utilities, automobile manufacturers,and others. Fuel cells generate direct current (DC)power through a chemical reaction between oxy-gen and either hydrogen or a hydrocarbon fuelsuch as natural gas. An inverter is used to convertthe DC produced by the fuel cell to alternatingcurrent (AC), required by standard building equip-ment and appliances. Water and carbon dioxide aretypically the only by-products of the reaction,making fuel cells very environmentally friendly.

The Long Island Power Authority (LIPA)installed seventy-five fuel cells at a substation todemonstrate the viability of this environmentallyfriendly technology for meeting Long Islandsdemand for electric power, growing at a rate of 3.5percent per year, twice the statewide average(LIPA 2001). This was the first installation of itskind in New York State. Environmental News(2001) predicted that this installation will generateabout one million kilowatt hours over its life, pow-ering about 100 average-size homes. In 2002,LIPA continued its experimentation with fuel cellsand installed seventeen 5 kW fuel cells at commer-cial customer locations including a McDonaldsrestaurant (Plug 2003). This year, LIPA isinstalling another twenty 5-kW fuel cells to pro-vide electric power and heat for single- and multi-family residences (Reuters 2003).

The First National Bank of Omaha (FNBO), thelargest privately owned bank in the U.S., installedan 800-kW fuel-cell system fueled by natural gasto provide primary power for the critical loads inits 200,000 square foot Technology Center (BFI2001). The primary purpose of this installationwas not to reduce energy costs or improve theenvironment. Fuel cells were installed by FNBO toimprove the reliability of its power supply andavoid losses resulting from power outages. FNBO,the seventh largest processor of credit card trans-

7


actions in the U.S., estimates that a one-hourpower outage would result in about US$6 millionin lost business (Ginsberg 2000). According toSure Power Corporation, the manufacturer ofFNBOs fuel cell installation, its fuel cells arecapable of providing 99.9999 percent availability.This translates into an average of less than 32 sec-onds of downtime per year (Weinberg 1999).Uninterruptible power supplies (UPS), commonlyused to protect critical loads from outages, haveavailabilities of about 99.99 percent which resultin an average downtime of approximately 53 min-utes per year.

Photovoltaics

Photovoltaics (PV) are semiconductors that con-vert sunlight to DC. Like fuel cells, photovoltaicshave been around for a long time and are just nowbeginning to become economically viable for thebuilding industry as utility rates rise and photo-voltaic manufacturing costs decrease. Like fuelscells, an inverter is used to convert the DC pro-duced by the photovoltaic cells to AC.

Current worldwide experimentation integratingphotovoltaics into building roofs, walls, and win-dows is referred to as building integrated photo-voltaics (BIPV). Using BIPV, the skin of a build-ing actually generates the electric energy for someor all of the building loads. The photovoltaics areintegrated with building elements making thempart of the buildings architecture, thereby elimi-nating photovoltaic panels that can detract fromthe buildings appearance and often are viewed asan afterthought. Integrating photovoltaics withbuilding elements also reduces material and con-struction costs because both the building elementand photovoltaic are manufactured and installed asone. The available photovoltaic surface area thatdetermines the amount of energy that can be pro-duced typically increases with building integratedphotovoltaics. In addition to generating electricity,when integrated into a commercial buildings cur-

tain wall, photovoltaics can reduce the buildingscooling load and increase the efficiency of thebuilding as a whole.

Mary Ann Cofrin Hall is a new 120,000 squarefoot classroom building at the University ofWisconsin Green Bay Campus. It is an example ofa building that uses building integrated photo-voltaics to meet a portion of its electric powerneeds (Wisconsin Public Service 2002). A total ofabout 4,300 square feet of photovoltaics wereinstalled, producing around 27,500 kilowatt hours(kWh) of electric energy for the building annually.The photovoltaics were integrated into 2,300square feet of standing seam metal roofing thatproduces about 15,000 kWh annually and 2,000square feet of glass curtain wall that producesaround 12,500 kWh annually.

Another BIPV example is the integration ofphotovoltaics into the roof of a support building atSan Francisco International Airport (CEE News2003). The 20 kilowatts (kW) installation is con-nected to the utility grid, allowing it to supply theexcess power it generates to the utility grid. This,in turn, reduces its energy costs. An installed mon-itoring system displays the daily energy output ofthe photovoltaic system, the power plant pollutantemissions offset, and the estimated amount ofmoney saved.

Combined Heat & Power

Combined heat and power (CHP) is an installa-tion that produces both usable electric power andheat at the same time. CHP greatly increases effi-ciency of on-site power generation. It uses wasteheat from another process to generate electricity oruses waste heat from the electric generatingprocess for other purposes. CHP is sometimesreferred to as cogeneration, typically using wasteheat from industrial and manufacturing processesto generate electricity. However, with small-scalegenerating technologies, CHP often refers to the

8


use of waste heat from the generating process forother productive purposes such as space heating ina building. Combined heat and power installationslocated at the consumers site can reach an overallefficiency of 80 percent. This compares to asteam-based central plant with an efficiency ofaround 30 percent when all losses are taken intoaccount.

CHP can be incorporated into any installationthat uses a generating technology that produceswaste heat as a by-product of electricity produc-tion. This includes diesels, other types of internalcombustion engine-generator sets, microturbinesand fuel cells. An example of the application ofCHP is the LIPA installation of fuel cells in homesto provide electricity and also heat for space con-ditioning in the winter months. Another example isthe installation of a 250- kW fuel cell plant at theSheraton Edison Hotel Raritan Center in EdisonNew Jersey (Starwood 2003). This fuel cell plantis expected to provide 25 percent of both thehotels electric power and hot water needs.

Distributed GenerationInterconnection Standards

Besides economics, one of the major barriers tothe widespread use of distributed generation hasbeen the lack of standards for interconnection withthe utilitys distribution system. Two consensusstandards have been adopted that should improvethe implementation of distributed generation atcommercial, industrial, and institutional sites.These two standards, sponsored and published bythe Institute of Electrical and ElectronicsEngineers (IEEE), are as follows:

IEEE Standard 1547-2003: Standard forInterconnecting Distributed Resources withElectric Power Systems

IEEE Standard 929-2000: Recommended

Practice for Utility Interface of PhotovoltaicSystems

IEEE Standard 1547-2003

The IEEE Standards Association Board author-ized development of IEEE Standard 1547 inMarch 1999. The purpose was to provide uniformstandards for interconnecting distributed resourceswith electric power systems. IEEEs StandardsBoard approved for publication IEEE Standard1547 in June 2003. This standard establishes therecommended practices for interconnecting distrib-uted generation technologies with the electric gridand ensures that investments in generation tech-nologies will result in economic application pro-viding alternative sources of electric power to theelectric operating infrastructure.

IEEE Standard 929-2000

The IEEE Standards Board approved IEEEStandard 929-2000 for publication in January2000. While this standard specifically addressesthe interconnection of photovoltaic systems gener-ating 10 kilowatts or less with the utility grid, itcan be applied to photovoltaic systems of any size.Prior to this standard, many utilities required thatsmall- to medium-sized photovoltaic systems com-ply with the same interconnection requirementsthat are applied to very large rotating generators.This was not practical and it restricted the applica-tion of photovoltaic systems. IEEE Standard 929simplifies photovoltaic system interconnectionwith the utility grid. Its goals include safety forutility linemen, safeguarding utility equipment,and protecting the utility customer. The use ofphotovoltaic inverters that convert the direct cur-rent (DC) to alternating current (AC) that complywith IEEE Standard 929 reduces photovoltaicinstallation costs which, in turn, helps removeanother barrier to widespread photovoltaic applica-tion.

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Integrated Building Systems

Building Systems Integration

The purpose of any building is to serve as a col-lection of systems that, taken together, providepeople with a controlled environment in whichthey can live, work, and play. These systemsinclude not only mechanical, electrical, and plumb-ing systems but also architectural systems such asthe building envelope that establishes the boundarybetween the interior and exterior environments.The well-being and productivity of a buildingsoccupants depend upon the operation of individualbuilding systems and upon the effective interactionof these systems.

Systems integration has long been recognized asthe key to effective and efficient building opera-tion. Design decisions such as physical layout,building orientation, and building materials impactheating and cooling loads as well as artificial light-ing needs. It has been common practice to designand specify building systems based on averagesand tradeoffs because building materials have beenpassive, that is, they are not able to adapt to chang-ing environmental conditions and occupant needs.This situation is changing with advancing technol-ogy and its commercialization in the buildingindustry. Building materials are becoming intelli-gent and adaptable. In addition, building communi-cations and control systems available today arecapable of effectively integrating all of thesediverse building systems with the objective of opti-mizing building performance.

Incorporating Intelligent BuildingMaterials

Advancing window technology is an example ofthe transition of a traditional building material intoan intelligent material. Smart windows that areunder development will control not only the

amount of visible light entering the interior of abuilding but also the amount of non-visible light, afactor that increases the buildings heat load andoperating costs. Similarly, windows are beingdeveloped that have integrated photovoltaics.These products will generate useful electricity andalso reduce building heating load as a result ofconverting solar radiation to electricity. Today, pas-sive window treatments or mechanical blinds andshades are used to control solar energy as it strikesthe window. Tomorrow, intelligent windows andcurtain walls will allow the dynamic control of thesolar radiation falling on window surfaces to pro-vide year-round visual and thermal comfort forbuilding occupants in addition to increased energyefficiency.

Advent of the Intelligent Building

The 21 st century building will be an integratedgroup of subsystems aimed at providing an envi-ronment that promotes the well-being and produc-tivity of the buildings occupants. In the past, allbuilding systems were viewed as independent sys-tems that needed to be optimized individually. Thistypically led to the sub-optimal performance of thebuilding as a whole. Today, this is changing withthe advent of distributed communications and con-trol systems. Systems are being integrated andcontrolled to optimize the performance of a build-ing as a system. Interoperability is a word that isoften heard and seen in todays building industry.

In tomorrows buildings, systems integrationand interoperability will be taken to an excitingnew level. The criteria for optimizing building per-formance will be focused on more than the cost ofbuilding operation and maintenance as it is today.The new focus will include the productivity andwell-being of the inhabitants remanded to thebuildings care. This is the heart of the intelli-gent or smart building of the future and theopportunity for the electrical contracting firm. Theterm intelligent building is defined by the

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Building Industry Consulting ServicesInternational (BICSI) in its TelecommunicationsDistribution Methods Manual (2000, p. 21-1) asfollows:

Building that operates a productive cost-effective environment through the optimiza-tion of its structure, systems, services, andmanagement as well as the interrelation-ships between them.

The power, communications, and control (PC 2) systems of tomorrow will integrate the buildingsfunctions much like the brain and nervous systemdoes in the human body. Just as the body has onecentral nervous system, buildings will have onestructured cabling system that will support most, ifnot all, building functions. This single structuredcabling system will be in lieu of the multiplegeneric and proprietary systems that are commontoday and tend to impede systems integration.Buildings will evolve into intelligent and support-ing environments that will resemble living andlearning organisms instead of the industrial-agemachines that they mimic today.

Integrating Distributed Generation

Power supply and distribution will also be a partof future systems integration as distributed genera-tion plays an increasingly important role in meet-ing the growing demand for electric energy in theU.S. Incorporating small-scale energy generationinto 21 st century buildings will require integrationwith other building systems as well as coordina-tion with the utility grid. Building loads will needto be monitored along with on-site generation todetermine the most economical mix of utility andsources for the building at any given time. In addi-tion, the demand for and quality of the availablepower will need to be balanced with the needs ofbuilding loads. Finally, building control systemswill have to coordinate with the local utility tosupply excess building generated power to the util-

ity grid to provide an income stream that thebuilding owner can use to offset building operatingcosts.

Opportunity for theElectrical Contractor

The need for an economical and reliable powersupply to meet the growing demand for electricalenergy in the U.S. will become an importantaspect of energy security. This will require anapproach that involves responsibly increasing gen-erating capacity while aggressively pursuing ener-gy conservation and efficiency initiatives.Increasing generating capacity through distributedgeneration, either by utilities or facility owners,can reduce U.S. reliance upon imported energythrough increased efficiency and help protect theenvironment through the use of renewable energysources and generating technologies with reducedor zero pollution.

Similarly, the use of energy in buildings can bereduced through integrated systems and intelligentbuilding materials that allow the building to opti-mize its operation dynamically, based upon real-time occupant needs and outside conditions. All ofthis represents a tremendous opportunity for theelectrical contractor who is prepared to take advan-tage of this emerging market by making the transi-tion from system installer to systems integrator.

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Acknowledgement

This paper is the result of ongoing research intothe future of the electrical contracting industry thatis sponsored by the Electrical ContractingFoundation, Inc. The author wishes to expresslythank the Foundation for its continuing support ofthis research.

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ELECTRI'21 COUNCILIntroductionEnergy SecurityThe Increasing US Demand for Electric EnergyGrid LockRecent EventsNorth American BlackoutLondon Blackout

Energy Contractors' Role in Energy SecurityMeeting Future Demand for Electrical EnergyDistributed GenerationDistributed Generation & Energy SecurityUtility Distributed Generation BenefitsOwner Distributed Generation BenefitsElectrical Contractor Involvement in Distributed Generation

Distributed Generation TechnologiesMicroturbinesFuel CellsPhotovoltaicsCombined Heat & Power

Distributed Generation Interconnection StandardsIEEE Standard 1547-2003IEEE Standard 929-2000

Integrated Building SystemsBuilding Systems IntegrationIncorporating Intelligent Building MaterialsAdvent of the Intelligent BuildingIntegrated Distributed Generation

Opportunity for the Electrical ContractorAcknowledgementBibliography

the electrical contracting foundation

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