1、AN-04-1 0-3 Renewable Energy for High-Performance Buildings in New Jersey: Discussion of PV, Wind Power, and Biogas and New Jerseys Incentive Programs Nick Stecky Member ASHRAE ABSTRACT This paper provides an overview of renewable energy activities in New Jersey and how they support the states Susta
2、inable and Green Buildings Initiative. As the most densely populated state in the nation, New Jersey has recog- nized the need for sustainable, smart growth and has imple- mented plans to promote it. Interest in promoting sustainable growth has been highest in state government, state regulators, hig
3、her education, K-12 education, and corporate businesses. This paper will review the state initiatives, provide a technical review of renewables, discuss their applicability, and provide case studies of actual projects in New Jersey. INTRODUCTION Recognition of the Need for Sustainability Key marketp
4、lace forces are converging to acknowledge and promote sustainability through renewable energies and green buildings in New Jersey, These include: Electrical deregulation and utility restructuring (phase- in period ended July 3 1, 2003; fll deregulation began August 1,2003) Energy supply uncertainty
5、Energy cost volatility-hourly pricing in place August 1,2003 New Jerseys Smart Growth Initiative Community interest in sustainable design Educational interest in sustainability in both higher edu- cation and K- 12 Incentive programs to transform the marketplace Renewable energy task force Renewable
6、energy technologies Sustainable Design and Development Although many have tried to define “sustainability,” no one to date has found a definition that satisfies all people. However, they all have agreed that sustainability consists of three main areas: Environmental and ecological preservation Econo
7、mics-sufficient financial benefit to be a “sustain- able” business activity Society and the community-enhanced quality of life The U.N. Brundtland Commission of 1987 offered the statement, “Sustainable development is that which meets all the needs of the present without compromising the ability of f
8、uture generations to meet their own needs.” According to the State of Oregon, “Sustainability means using, developing, and protecting resources at a rate and in a manner that enables people to meet their current needs and also provides that future generations can meet their own needs.” From former P
9、resident Clintons Council on Sustainable Development: “Americas challenge is to create a life-sustain- ing Earth, a future in which prosperity and opportunity increase while life flourishes and pressures on the oceans, Earth and atmosphere diminish.” So although there are differences in how the sust
10、ainability concept is expressed, all agree that it includes maintaining a suitable quality of life while providing for the long-term protection of the environment in an economically feasible manner. Nick Stecky is director of energy services at First Energy Group, LLC, Old Bridge, N.J. 602 02004 ASH
11、RAE. 1 KEY MARKETPLACE FORCES Electrical DeregulationlUtility Restructuring The Electrical Discount and Energy Competition Act P. L. 1999, c23 (the Act) was signed into law by Governor Whitman on February 9,1999. It set the stage for electrical deregulation in New Jersey. Included within the Act wer
12、e sections that promoted the use of energy efficiency and renewable energy technologies, which became known as the Clean Energy Program. A deregulation phase-in period was initiated in 1999, with deregulation coming into full effect August 1,2003. The result of deregulation will mean that a customer
13、s electrical bills will have two components-a delivery charge for services provided by the regulated utility and the unregulated energy commodity portion provided through electricity commodity generators and their representatives. Pricing will be market driven with the customer now owning the energy
14、 commodity riskheward formerly managed by the utility. The new cost structure will have pricing that will vary depending upon market conditions. Customers who are served at primary and high-tension voltages will be subject to highly volatile hourly pricing. Secondary voltage customers will experienc
15、e price fluctuations but not to the degree of the primary and high- tension customers. Energy Supply Uncertainty and Cost Volatility As a result of uncertainties in the Middle East and difi- culties in locating new sources of gas and oil fossil fuels, there will be uncertainty in the supply and cost
16、 of these fuels. According to the Federal DOE Annual Energy Outlook 2003, the projection over the next 30 years is: U.S. energy demand will grow at an average annual rate of 1.5%. U.S. economy will grow at an average annual rate of Energy intensity of the economy will decrease at an average annual r
17、ate of 1.5%. Average real price of electricity will drop from $.073/ kwh to $.067/kWh. U.S. oil import reliance will grow from 55% to 68%. CO, emissions will grow at an average annual rate of 3.0%. 1.5%. While some of these forecast rates may be arguable, a key advantage ofrenewable electrical gener
18、ation is that it will have a generally fixed energy cost, consisting primarily of the amortization of the initial capital cost of the renewable equip- ment. In other words, with renewables, you are “prepurchas- ing” a portion of your energy consumption as a hedge against volatile energy costs. New J
19、ersey is now in a deregulated marketplace, and it is now the consumers responsibility to manage costs. New Jerseys Smart Growth Initiative As the most densely populated state in the U.S., New Jersey has recognized the need for sustainable development. Governor McGreevey has created the Office of Sma
20、rt Growth, which works with the Governors Ofice through the Smart Growth Policy Council. The Office of Smart Growth ensures that state agencies incorporate the State DevelopmentRede- velopment Plan and Smart Growth principles in their plans, regulations, and programs. Community Interest in Sustainab
21、le Design Interest levels in sustainability are very high. Many orga- nizations have been formed, such as the New Jersey Chapter of the U.S. Green Building Council. A simple web site search will show numerous workshops, seminars, and lectures, confirming the high interest in sustainability. Educatio
22、nal Interest in Sustainability- Higher Education and K-12 Support for sustainability in the education sector is very strong. Proponents of sustainability within New Jerseys higher education community have formed the New Jersey Higher Education Partnership for Sustainability (NJHEPS). At present, all
23、 of the colleges and universities in the state have signed on as promoters of sustainability and the NJHEPS organization. For grades K-12, there is a significant construc- tion program underway to reconstruct school facilities state- wide over the next ten years. Currently, the state-funded portion
24、is $8.5 billion and the local portion is approximately $4 billion, resulting in an overall construction program of $12.5 billion. This program is managed by a state entity called the School Construction Program (SCC). In support of sustainability, Governor McGreevey issued on July 29,2002, Executive
25、 Order #24, stating that all school facilities constructed under this SCC program will follow the U.S. Green Building Councils sustainability and green building program, Leadership in Energy and Environmental Design (LEED). The New Jersey Board of Public Utilities (the BPU) has introduced a Pilot Ph
26、otovoltaic Power System Program for the design and installation of photovoltaics at four new or replace- ment school buildings located in Abbott School Districts, defined by the state to be “special needs” districts generally located in areas of economic distress. The BPU believes that an excellent
27、opportunity exists to implement renewable energy technology when renovations are taking place, and the technology can be tailored into the design of the school build- ings. This renewable technology will offer the school an opportunity to generate its own electricity and reap environ- mental benefit
28、s. Lastly, this technology can also be incorpo- rated into the schools science and environmental curriculum to enhance the educational experience of students. The Comprehensive Resource Analysis Customer Sited Clean Energy Generation Program and the United States Department of Energy are providing f
29、unds for this exciting program. Grants of up to $260,000 will be awarded for the design, purchase, and installation of a photovoltaic power system. ASHRAE Transactions: Symposia 603 Incentive Programs to Transform the Marketplace Maximum incentive as percentage of eligible system costs Since 1989, N
30、ew Jersey has had several different energy efficiency and renewable incentive programs mandated by the New Jersey Board of Public Utilities and managed by the gas and electric utilities. Currently, there are two programs. First is “Smart Start for Buildings,” which promotes energy-es- cient technolo
31、gies for lighting, HVAC, etc. The second is “Clean Energy,” which promotes renewables such as biomass, wind power, and solar photovoltaic. The Clean Energy Program currently provides the largest PV incentive of any other state program. These programs are funded through a Societal Benefits Charge (SB
32、C), which is a fractional percent- age tacked onto all gas and electric bills. The purpose of these programs is to “transform the marketplace,” with an expecta- tion that, in time, these high-performance technologies will become part of the mainstream of engineering and architec- tural practice. 70%
33、 CLEAN ENERGY PROGRAM INCENTIVES Tables 1 and 2 are intended to help explain the financial incentives of the Clean Energy Program. Table 1, for biomass and wind power, provides a matrix for calculating the incentive depending upon two factors- incentive blocks and tiers. To encourage early participa
34、tion in the program, a greater incentive was offered to the applicants for the first block of 6.2 megawatts generated and lesser incen- tives for the following blocks. As the early applicants were granted incentives, those applicable kilowatts of generation were deducted from block I. Once full, the
35、 incentive would be calculated at the values given for the subsequent block until all blocks were full, at which time the incentives would cease pending other revisions from the Board of Public Utilities (BPU). The differing values offered in the tiers reflect econo- mies of scale in the purchased p
36、ricing of various systems. Small systems have higher unit costs and, therefore, consid- eration was given to rebate them at the higher rates. Similarly, large systems have smaller incentive rates per kW. Note also New Jersey Clean Energy Program Incentives I Maximum incentive as Dercentage of eligib
37、le costs 1 60% I I 40% I 30% I Incentive levels will change over time as the capacity allocated for each block is filled. At least 50% of the capacity in blocks 2,3, and 4 is reserved for small systems (10 kW or less). 604 ASHRAE Transactions: Symposia that there is a percentage cap, expressed as a
38、percentage of the total project cost. Table 2, for photovoltaic, has no block arrangement; it is simply a rebate based upon the tier approach. Small systems have larger rebates per generated kW than the larger systems, again reflecting the economies of scale. There are two percent- age caps-one for
39、very small systems and another for larger systems. Governors Renewable Energy Task Force On January 28,2003, New Jerseys Governor McGreevey announced the formation of a Renewable Energy Task Force to encourage the use of renewable energy. This task force is charged with strengthening and expanding t
40、he renewable energy requirements that the state imposes on suppliers. In announcing the task force, McGreevey stated: The goal of the Renewable Energy Task Force will be to examine ways that the State can make energy more affordable, reliable, and efficient through the use of renewable energy source
41、s. Clearly, renewable energy is the energy of the future, and this Administration is committed to leading the way. Renewable Energy Technologies- Technical Review and Applicability Technologies that are recognized for incentives through the New Jersey programs are biomass, wind power, fuel cells, an
42、d solar PV. Sustainable Biomass Equipment. This uses a renewable supply of organic material to produce electricity, thus reducing dependence on fossil fuels while promoting local businesses and farming. Some possible uses of biomass are as a fuel directly burned for heat, such as wood waste from a l
43、umber plant. Biomass also includes equipment to promote the diges- tioddecomposition of organic materials, which, in turn, produce methane (CH4), carbon dioxide, and water vapor. The methane is separated and used as a fuel in a number of ways. For example, it could be used in a boiler or heating uni
44、t to heat air or water for space heating or hot water. The methane could also be used in an internal combustion (IC) engine or a fuel cell. With the engine, fuel is burned, and the output shaft of the engine turns a generator to produce alternating current (AC) electricity. Typical electrical produc
45、tion efficiencies are 20% to 30% with possibilities to use the waste heat to improve the overall efficiency. This is a relatively simple, very conven- tional system. A common application is at wastewater treat- ment plants that have anaerobic digestion processes, which continuously produce methane.
46、Typical methane production in these plants is sufficient to run engines in sizes that range in capacity from a few hundred kW to a 1,000 kW. A potential environmental downside of IC engines is the production of oxides of nitrogen, carbon dioxide, and other compounds, all depending upon emissions con
47、trol technologies. Capped land- fills are another source that has been tapped for methane. Note that biomass energy sources are very site and process specific and will be difficult to apply on a large scale across the state. Fuel Cells. These produce direct current (DC) electricity through a process
48、 that converts chemical energy directly into electricity. The resultant DC can then be converted into AC if desired. There are no IC engines, no generators, and few moving parts. All current technologies rely on hydrogen as the fuel source. Although there are machines that are commer- cially availab
49、le and have performed well over a number of years, this technology continues to evolve. As for operation, typically the hydrogen is obtained by using a more conven- tional fuel source, including methane, natural gas, biomass gases, and alcohol or petroleum products such as gasoline. The fuel is passed through a “fuel reformer,” which strips the hydrogen from the fuel molecules, sending it to the fuel cell for chemical reaction and oxidizing the resultant carbon to carbon dioxide. Efficiencies are very high, ranging from 40% to 50%. Although these may produce CO, depending upo
