Combined Heat & Power (CHP) Resource Guide For Hospital Applications
Combined Heat & Power (CHP) Resource Guide For Hospital Applications
Combined Heat & Power (CHP) Resource Guide For Hospital Applications
Published In 2007
Prepared by:
Capacity Factors
Based on equipment output vs. capacity
Load Factors
Based on site load data
APPENDICES……………………………………..…………………………………………………38
Figure 2-1 Combined Heat and Power Diagram – Direct Fired .............................................. 9
Figure 2-2 Combined Heat and Power Diagram – Indirect Fired.......................................... 10
Figure 5-1 CHP Building Blocks Diagram............................................................................. 20
Figure 5-2 State Interconnecting Ruling Status .................................................................... 24
Figure 7-1 Electric Energy Distribution in Hospitals.............................................................. 34
Figure 7-2 Natural Gas Distribution in Hospitals................................................................... 34
Figure 7-3 Monthly Electric Consumption – 240,000 SF Hospital ........................................ 35
Figure 7-4 Monthly Maximum Electric Demand – 240,000 SF Hospital ............................... 35
Figure 7-5 Monthly Natural Gas Consumption – 240,000 SF Hospital................................. 35
Figure 8-1 Number of CHP Installations and Installed Capacity (Megawatts) in U.S.
Hospitals by Prime Mover Type ......................................................................... 37
Figure 8-2 Number of CHP Installations and Installed Capacity (Megawatts) in U.S.
Hospitals by Fuel Type ...................................................................................... 37
CHP is an approach that can help address these energy, environmental, and security issues
in hospitals. Nationally, CHP exists in over 3,000 sites generating approximately 83,000 MW
of electric power (approximately 9% of the total electric generation in the U.S.).1 Today, CHP
is installed in only approximately 4% of the active stock of U.S. hospitals.
The hospital guidebook was developed by the Midwest CHP Application Center (MAC) with
assistance from Avalon Consulting Inc., Energy and Environmental Analysis Inc., and PEA
Inc. The MAC is one of eight regional CHP application centers established by the U.S.
Department of Energy (DOE) to develop technology application knowledge and the
educational infrastructure necessary to foster CHP as a viable energy option and reduce any
perceived risks associated with its implementation. The regional application centers provide:
• Targeted Education
• Unbiased Information
• Technical Assistance
For more information on the MAC, please visit our website at:
www.chpcentermw.org
Appendix C of this guidebook provides a list and contact information for all eight regional
CHP application centers.
1
Hedman, Bruce. “The Role of CHP in the Nation’s Energy System.” USCHPA Annual Meeting. PowerPoint
presentation. 2 November 2007. <http://www.uschpa.org/MembersOnly/2007Conf/Hedman.ppt>
Although CHP is not the only way to address these supply side priority issues, certainly CHP
is one option.
2.1 Definitions: Distributed Generation (DG) and Combined Heat & Power
(CHP)
• The fuel is utilized to produce high pressure steam through a boiler (boiler efficiencies
~ 80% to 85% HHV)
• The steam is utilized for both the hospital thermal loads and to operate the CHP
system
• The CHP system generates utility grade electricity by utilizing the pressure drop in the
steam through a steam turbine
• Steam can be extracted from the turbine to assist in meeting the hospital thermal
loads
• CHP systems are normally installed in parallel with the electric grid (CHP does not
replace the grid)
• Both the CHP and grid supply electricity to the customer
• Recycled heat from the prime mover is used for:
¾ Space Heating (Steam or Hot Water Loop)
¾ Space Cooling (Absorption Chiller)
¾ Process Heating and/or Cooling (in hospitals this might include equipment
sterilization, laundry, kitchen, general hot water needs, etc)
¾ Dehumidification (Desiccant Regeneration)
• By sizing the CHP for the thermal requirements of the facility, we are most times,
ensuring the highest coincidence of thermal and electric power requirements, thus
providing the highest CHP system efficiency
• Electricity:
¾ Purchased from the local utility (regulated market); purchased from the utility
or competitive electric provider (deregulated market)
¾ Power generated at central station power plants
¾ Normally generated at approximately 30% energy efficiency (10 units of fuel in,
3 units of electric power (kW) out)
¾ 70% of the fuel energy lost in the form of heat vented to the atmosphere
• Thermal (heating):
¾ Normally generated on-site with multiple natural gas or coal-fired boilers
¾ Either hot water loop or steam loop
¾ Boilers generate steam or hot water at energy efficiencies between 60% to
80% (most new boilers are in the 80% range) – 10 units of fuel in, 6 to 8 units
of heat out
• Thermal (cooling):
¾ Normally use electric chillers with chilled water loop (operate on electric power
supplied from the local utility)
¾ May use absorption chillers (central heating/cooling plant or smaller systems
located at specific buildings) in conjunction with electric chillers to offset peak
electric demands.
¾ Absorption chillers are either direct fired (natural gas fueled) or indirect fired
utilizing hot water or steam generated from the boilers.
• CHP system capacity for hospitals typically ranges from several hundred kilowatts to
several Megawatts (usually below 10 Megawatts) depending on the size of the facility.
• Prime movers employed in hospital CHP systems normally include natural gas
reciprocating engines, natural gas turbines, or steam turbines (operating on the
steam generated by natural gas, oil, or coal boilers).
• Hospitals with steam loops and/or electric capacities of several megawatts often use
gas turbines with heat recovery steam generators.
• Hospitals with hot water loops often times use reciprocating engines.
• Most Hospital CHP systems are sized for the thermal load requirements, with the
resulting electric power generated used to first offset the power purchased from the
utility grid and if/when the system is generating more electric power than required at
the hospital, the excess power can be sold back to the utility.
• CHP systems do not replace the need for emergency generator sets to meet the “life
critical loads” of a hospital, but they can reduce the number and capacity of the
emergency generators required while increasing the total electric reliability for the
hospital
The better the match, the higher the fuel use efficiency of the CHP system, and
the more likely the financial payback will be favorable.
2
Engle, David. “Miracle Cure for Utility-Rate Headaches.” Distributed Energy – The Journal for Onsite Power
Solutions. March/April 2005. 13 November 2007 <http://www.forester.net/de_0503_miracle.html>.
* Utilizing absorption chillers fueled by the exhaust thermal energy from the
prime mover has two benefits:
1) Reduces peak electric demand and electricity charges by reducing the
operating time of electric chillers
2) Increases the electric to thermal load coincidence in the summer
months providing higher efficiencies.
Rule-of-Thumb: If > 50% of the available thermal energy from the prime mover
can be used on an annual basis, CHP makes good $ense.
• The ability to use as much of the available exhaust thermal energy from the prime
mover throughout the entire year makes the savings from a CHP system higher
and the payback quicker.
4.1.2 Cost Differential Between Electricity and the CHP Fuel (Spark Spread)
The most common fuel utilized in Hospital CHP plants today is natural gas. For that reason,
the following example for calculating Spark Spread is done assuming natural gas is the fuel
of choice for the CHP system. However, if other fuels or combination of fuels are used for the
CHP system, a similar approach would be used comparing the MMBtu cost of electricity to
the MMBtu cost of the applicable CHP fuel.
For an accurate financial analysis of a CHP system, a model should be utilized that
develops hour-by-hour electric and thermal load profiles and utilizes actual
electric and gas rates applied to the hour-by-hour load profiles to determine annual
savings
Operating hospital CHP systems only during peak electric demand periods of the day
(approximately 10 to 12 hrs/day, 5 to 7 days/wk, 3,000+ hrs/year) can be financially
attractive. This is due to the potential for significant differences in both electric energy and
demand charges in on-peak versus off-peak periods of the day.
If the “Spark Spread” calculation results in a cost differential of less than $12/MMBTU,
it is suggested that the “Spark Spread” calculation be redone utilizing on-peak electric
and gas useage and costs. Many utility bills separate on-peak from off-peak useage
and costs. For more information on how to calculate the true on-peak cost of
purchased electricity, see Section 6.3 and Appendix D.
If the electric supplier has higher energy and demand rates for “peak” time,
generally considered to be during normal weekday daytime business hours
charges, it may be beneficial to look for the $12 spark spread during the “peak”
hours and operate the CHP system only during those hours.
• Often times, the facility managers will operate the CHP system only during the peak
electric rate periods of the day, which might be 12 to 14 hours per day. If you
operate 12 hours per day, 5 days per week, the CHP annual operating hours will be
approximately 3,000 hours per year.
V What constitutes Long Operating Hours?
It depends …
• Over 6,000 hours/year, typical in hospital applications where there is a 24/7 use for
thermal energy, are normally good sites provided the $12/MMBtu differential is met.
• Between 5,000 to 6,000 hours/year, with good thermal utilization of the exhaust
heat from the prime mover, the financial benefits may be favorable, but a more
detailed assessment should be done.
• Between 3,000 and 5,000 hours/year, payback may be sufficient enough to be
financially favorable, but a more detailed analysis should be considered.
Prior to the 1989 installation of a 3.8 MW CHP system at Little Company of Mary
Hospital, located in Evergreen Park, Illinois, the hospital experienced
approximately 30 instantaneous power outages per year affecting data
processors, lab testing and other critical equipment and procedures. The CHP
system eliminated nearly all instantaneous outages and frustations on behalf of
the staff and patients due to the power outages. For more information visit:
http://public.ornl.gov/mac/pdfs/factsheets/Lake%20Forest%20Hospital%20%20Pr
oject%20Profile.pdf
If T/P =
0.5 to 1.5 Consider engines
1 to10 Consider gas turbines
3 to 20 Consider steam turbines
• CHP systems that utilize reciprocating engines, gas turbines, or steam turbines
as their prime mover technologies convert the mechanical shaft power to electricity
through the use of an electric generator.
• Generators produce AC power and operate on the principle that voltage is induced in
a wire held in a rotating magnetic field
• The frequency of the power depends on the generator’s rotational speed (revolutions
per minute – rpm)
Power Factor is defined as the measure of the efficiency with which the
total power delivered by a source is used for real work (real versus
reactive power). All facilities (hospitals) contain a mixture of resistive and
reactive (mainly inductive) loads. Low power factors occur when there
is no correction for large inductive loads in a facility. Power factor is
important to electric utilities and customers are required to correct for low
power factors or pay higher utility bills. Adding capacitors to the facility is
the most common way of correcting low power factors due to inductive
loads. The effect of CHP installations with synchronous generators can
have an overall positive effect on a facility’s power factor.
Since CHP systems operate in parallel with the electric utility grid and must be
interconnected to the grid, it is advisable to contact your local electric utility
early in the evaluation process to understand their position on CHP and their
rules and regulations for interconnecting to their grid. Failure to do this early in the
5.4 process
Grid could result in high costs and long delays (especially if the utility is not
Interconnection
favorable to CHP).
• When connecting an on-site generator to a utility grid, the major concerns include:
¾ Safety of customers, line workers, and general public
¾ Integrity of the grid – quality of service
¾ Protection of connected equipment (including the on-site generator)
¾ System Control by the Utility
• Power Safety
¾ An on-site generator can not feed power back onto a de-energized grid.
¾ Utilities require interconnect designs that ensure this happens automatically
¾ Most utilities require an additional external disconnect switch be installed that
is accessible by utility personnel to disconnect and lock out the CHP system
from the grid
¾ Reverse power relays can be used in non-exporting installations to ensure no
power flow onto the grid
3
“Interconnection Standards Fact Sheet.” U.S. Environmental Protection Agency – Combined Heat and Power
Partnership. 31 October 2007. <http://www.epa.gov/chp/state-policy/interconnection_fs.html>.
The local electric utility distribution grid is the most common point of interconnection for
CHP in hospital applications. The distribution grid is typically a lower voltage system (< 69
kV) that ties the hospital to the larger, higher voltage transmission system. The tie in between
the transmission and distribution grids occurs at the utility substations. There are nominally
two types of distribution systems applicable to CHP systems:
Parallel operation is the preferred way of interconnecting and operating with the grid
(provides the most flexibility). Both the on-site generator and the utility grid power the facility
simultaneously. The CHP system can operate in either the Export or Non- Export mode.
Implementing a CHP system requires significant time, effort, and investment. With
approximately 175 hospitals in the U.S. presently utilizing CHP systems with a generating
capacity of over 686 MW of electricity on-site and recycling millions of Btus/hr of thermal
energy for use within the hospital, the CHP concept is certainly one that has been proven to
be technically and financially sound.
However, we have stated that CHP is not right for every hospital application in every sector
of the country. There are many variables that must be considered when evaluating an
investment that could easily reach several millions of dollars. These variables include capital
costs, operating and maintenance costs, utility (electric and gas) rates, interconnection costs,
environmental standards, energy load requirements corrected for local weather conditions,
and regulatory requirements, just to mention a few.
Therefore, it is prudent to evaluate the technical and financial feasibility of a CHP system
at your facility using a four step evaluation process:
• US EPA CHP Partnership Program Survey: The following is a simple survey (set of
12 questions). It is designed to provide a very simple indication whether pursuing
more accurate evaluations is justified.
Do you pay more than $.06/ kWh on average for electricity (including generation, transmission and
distribution)?
Are you concerned about the impact of current or future energy costs on your business?
Are you concerned about power reliability? Is there a substantial financial impact to your business if the
power goes out for 1 hour? For 5 minutes?
Does your facility operate for more than 5000 hours/ year?
Do you have thermal loads throughout the year (including steam, hot water, chilled water, hot air, etc.)?
Do you expect to replace, upgrade or retrofit central plant equipment within the next 3-5 years?
Do you anticipate a facility expansion or new construction project within the next 3-5 years?
Have you already implemented energy efficiency measures and still have high energy costs?
Do you have access to on-site or nearby biomass resources (i.e. landfill gas, farm manure, food
processing waste, etc.?
If you have checked the boxes for 3 or more of the questions above, your facility may
be a good candidate for CHP.
The next step in assessing the potential of an investment in CHP is to have a Level 2 Site
Screening Analysis or Level 3 Conceptual Design and Financial Analysis performed to
estimate the preliminary return on investment. The U.S. DOE sponsored CHP Regional
Application Centers or the US EPA CHP Partnership Program can be contacted for Level
2 or Level 3 analysis assistance.
Appendix C provides a listing of the 8 CHP Regional Application Centers and points of
contact
• This level analysis is normally based on annual or monthly average utility costs,
makes several assumptions on load profiles and equipment size, has no correction
for weather conditions, but does provide an estimate of savings, installation cost, and
simple payback. The accuracy of the stated results of a Level 1 feasibility analysis
might be in the 30% range, but is intended to simply provide another more detailed
indication as to whether further analysis should be undertaken.
¾ Estimate the cost of generating electricity with the CHP system providing
credit for the amount of recycled energy utilized
• Equipment sizing and conceptual one-line design diagrams are included in a Level 3
analysis
• Although a Level 3 analysis does not substitute for detailed design and engineering, it
can & should be utilized to obtain financial commitment for capital funds to initiate the
first stages of the project.
4
Hudson, Randy. “Survey of DER/CHP Survey.” Midwest CHP Application Center. PowerPoint (February
2003). 16 November 2007.
<http://www.chpcentermw.org/pdfs/20040206_ORNL_der_chp_software_survey_HudsonR.pdf>.
In this section,5 we took one of the Level 3 simulation tools (Building Load Analyzer) and
generated energy load data for a 240,000 square foot full service hospital (average size U.S.
hospital6). The information is shown for the same hospital located in four different major
regions of the country with different climate conditions (Chicago, New York, Miami, and Los
Angeles). The intent of providing this data is to allow the reader to better understand where
and how energy is utilized in hospitals.
5
“Managing Energy Costs in the Hospital/Healthcare Sector Managing Energy Costs in the Hospital/Healthcare
Sectors.” Florida Power and Light Company. 12 November 2007.
<http://www.fpl.com/business/savings/energy_advisor/PDF/CEA_Hospitals.pdf>
6
“Table B1. Summary Table: Total and Means of Floorspace, Number of Workers, and Hours of Operation for
Non-Mall Buildings, 2003.” Energy Information Administration – Official Energy Statistics from the U.S.
Government. 14 November 2007.
<http://www.eia.doe.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/2003set1/2003html/b1.html>
Space Cooling
26%
Misc. Equipment
18%
Misc. Domestic.
25% Misc. Domestic.
26%
Space Heating
Space Heating 43%
44%
Space Heating
Space Heating 18%
25%
800,000
700,000
ElectricConsumption(kWh)
600,000
500,000
400,000
300,000
200,000
100,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1400
1200
ElectricDemand(kW)
1000
800
600
400
200
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4,500
Natural GasConsumption(MMBtu)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The database utilized to identify hospitals in the U.S. that have active CHP systems is the
U.S. DOE CHP database located at http://www.eea-inc.com/chpdata/index.html. It is difficult
to account for all hospitals with CHP, since the data base provides separate data categories
for colleges/universities and hospitals. The data does not distinguish which of the universities
with CHP have teaching hospitals included on their campus and are therefore serviced by
the University CHP system.
The purpose of this section is to inform you that CHP installations in the healthcare industry
are not a new and novel idea. Utilizing the U.S. DOE CHP database, one can see that:
• 175 hospitals have stand alone CHP systems with a generating capacity of 686
MW. The average system size is 3,924 kW and the median is 1,050 kW. These
systems are located in 30 states.
• 213 colleges and universities have CHP systems installed with a total generating
capacity of 2,612 MW. At least several dozen of these campuses include hospitals
serviced by the CHP system. These systems are located in 41 states. The
average system size is 12,264 kW and the median system size is 3,100 kW.
• Finally, nursing homes are another segment of the healthcare industry that are
good applications for CHP systems. The database shows that 114 nursing homes,
located within 11 states, include CHP systems with a total capacity of 22.4 MW.
The average system size is 197 kW and the median system size is 75 kW.
Presbyterian Homes, a nursing home located in Evanston, Illinois, lost power for
nine hours during an ice storm in the winter of 1998. Both of the facility’s electric
utility feeds were knocked out and over 600 senior residents were without
electricity. This event coupled with the premise of avoiding such future outages
prompted Presbyterian Homes to install a 2.1 MW natural-gas fired CHP system
in January, 2001. More information is available at:
http://public.ornl.gov/mac/pdfs/factsheets/Presbyterian%20Homes%20-
%20Project%20Profile.pdf
Appendix E provides a list of the installed CHP systems located in hospitals by prime mover
type, fuel type, size of system, and year of installation. The figures below provide a
snapshot of the types of CHP installations that are installed in U.S. hospitals. Clearly,
natural-gas fired reciprocating engine CHP systems are the preferred fuel and prime mover
among hospitals.
Combined Cycle
9 sites, 5%
Reciprocating
Engine
110 sites, 62% Boiler / Steam Turbine
202 MW, 29%
Combustion Turbine
30 sites, 17%
Combined Cycle
218 MW, 32%
Figure 8-1 Number of CHP Installations and Installed Capacity (Megawatts) in U.S.
Hospitals by Prime Mover Type
Oil, 21 MW, 3%
Oil
14 sites, 8% Waste, 55 MW, 8%
Wood, 2 MW, 0%
Figure 8-2 Number of CHP Installations and Installed Capacity (Megawatts) in U.S.
Hospitals by Fuel Type
Estimate the Distance Between the Multiple Meters in Your Facility Feet
Has the Facility Experienced Problems with Power Quality Such as:
Low Voltage? If Yes, Please Describe:
Does the Facility Have Any Significant Need for UPS Systems? If Yes, Please Describe:
How Close are the Existing Electric Feeders to This Location? Feet
Does a Hot Water or Steam Piping System Exist that Could be Used?
Existing Equipment: A CHP system will need to tie into existing heating and cooling systems.
The current state of these systems will affect the savings and the first cost
How is Heat Distributed to the Building? Steam, Hot Water, or Hot Air
What Sizes are the Existing Heating Equipment? Type Capacity Units
Please Mark Type of Heating System: No. 1 GHA
GSB = Gas Fired Steam Boiler GHW = Gas Hot Water Boiler No. 2 GB
OSB = Oil Fired Steam Boiler OHW = Oil Hot Water Boiler No. 3 GHW
ESB = Electric Steam Boiler EHW = Electric Hot Water Boiler No. 4 OHA
OHW = Oil Hot Water Boiler O = Other (Please Describe) No. 5 OB
ERT = Rooftop Units-Electric Heat GRT = Rooftop Units-Gas Heat OHW
What Sizes and Type are the Existing Chillers? No. 1 Tons E
Please Indicate the Type of Chillers: No. 2 Tons AS
AS = Absorption (Steam Fired), AD = Absorption (Direct Fired) No. 3 Tons
AH = Absorption (Hot Water Fired), E = Electric Chillers No. 4 Tons
ED = Engine Driven, SD = Steam Turbine Driven, O = Other No. 5 Tons
Are There Concerns about Noise at the Selected System Location? If Yes, Please Describe
Are There Concerns about Vibration at the Selected System Location? If Yes, Please Describe
Would the Facility be Able to Obtain Gas at a Lower Rate if the Gas
Yes
Consumption of the Facility Were Larger?
No
What are the Electric Utility Stand-By Charges in This Area? $/kW/Mo
Would the Facility be Interested in Having a Third Party Own the CHP Plant
Please Explain:
and Sell Them Power/Heating/Cooling?
Midwest Northeast
Northwest Region www.northeastchp.org
www.chpcentermw.org
www.chpcenternw.org
Intermountain Southeastern
www.IntermountainCHP.org www.chpcenterse.org
Gulf Coast
www.GulfCoastCHP.org
Backup generators have been around for decades, what is new about on-site
power generation?
Recent developments have pushed to make on-site power generation cleaner, cheaper,
and quieter. Backup generators typically use diesel-fired internal combustion engines
with a multitude of moving parts and relatively high emissions of pollutants NOx and
SOx. Advanced recip engines have been developed that use natural gas and reduce
emissions. Microturbines have been developed which have very low emissions of
pollutants and extremely few moving parts making them attractive from an environmental
and maintenance point of view. Gas turbines are also being marketed in smaller
capacities so that they have appeal beyond large utilities and factories. Fuel cells
continue to be developed with a promise of higher efficiencies and lower emissions than
any other source of electricity and heat. Finally, strides are being made to reduce
emissions from IC engine driven generators to reduce their environmental impact.
They are available in a broad range of capacities and can have very high efficiencies. A
couple of manufacturers are producing microturbine generators and there are products
under development by additional companies and in additional sizes from the current
manufacturers.
Gas turbine generators are sold for applications requiring greater capacities and one
brand of fuel cell is available. Many different companies are in the process of developing
fuel cells for on site power generation and more products will become available.
What is an HRSG?
A heat recovery steam generator, or HRSG, is used to recover energy from the hot
exhaust gases in power generation. It is a bank of tubes that is mounted in the exhaust
stack. Exhaust gases at as much as 1000°F heat the tubes. Water pumped through the
tubes can be held under high pressure to temperatures of 370°F or higher or it can be
boiled to produce steam. The HRSG separates the caustic compounds in the flue gases
from the occupants and equipment that use the waste heat.
What is a reformer?
Generally speaking, fuel cells use molecular hydrogen as their fuel and oxygen from the
air to produce electricity. A reformer is a device that allows a fuel cell to use a
hydrocarbon fuel like natural gas or propane as the fuel. It uses a catalyst, water, and
heat to break down the
hydrocarbon releasing hydrogen as fuel to the fuel cell and carbon dioxide to the
atmosphere.
What is a chiller?
Most small buildings, such as houses use a forced air distribution system to provide hot
or cold air for comfort conditioning. Large buildings frequently use a hydronic distribution
system and pump chilled water to air handling units to provide cool air for air
conditioning. A chiller is the machine that cools water to around 44°F for distribution to
the air handling units.
What is SCR?
SCR stands for selective catalytic reduction and is a process for removing NOx from
exhaust gases in order to meet pollution control requirements.
Electrical to Thermal
Energy 1 kWh = 3,412.8 Btu
1 BTU = 778 ft-lbs
Steam to Thermal
Energy 1 lbs steam* = 1,000 Btu
* Use actual enthalpy values from steam tables at given pressure and temperature for more accuracy!