Importance of Emergency Standby Power

Keeping the Lights On and Critical Services Functioning: Technical Options and Policy Solutions for Maintaining Continuous Electrical Power During Loss of Grid Power

Welcome to our Webinar September 18, 2014

Clean Diesel Education Energy Efficiency Outreach Emissions Environment Economics Research Applications Uses Collaboration Legacy Products DTF members are leaders in clean diesel technology

– AGCO – Johnson Matthey – BorgWarner – Mazda North American – Bosch Operations – Caterpillar Inc. – Umicore – Chrysler Group – Volvo Group – CNH Industrial – Volkswagen of America – Cummins Inc. – MTU – Daimler – Yanmar America – Deere & Company – Delphi Automotive Allied Members – Ford Motor Company – Association of Diesel – General Motors Specialists – Honeywell – National Biodiesel Board – Isuzu Manufacturing – Western States Petroleum Services of America Association Your Speakers

• Moderator: Allen Schaeffer, Diesel Technology Forum

• Jason Kitchel, Caterpillar • Ezra Finkin, Diesel Technology Forum • Mike Jones, Maryland Energy Administration Today’s Program

• Electricity & Grid Supply Outages – Causes, history and impacts of grid power outages • Introduction to Back-up power options – Fuel and technology choices • Technologies offered in Emergency Standby Applications • Review of State Initiatives for Encouraging Emergency Back up Power Capabilities • Maryland Energy Administration – Fuel Up Program • Questions • Concluding remarks • Future Programming – Demand Response Cause of Large Electrical Blackouts in the U.S. 2008 Event % Events Mean Size in MW Mean Size in Customers

Earthquake 0.8 1,408 375,900 Tornado 2.8 367 115,439 Hurricane Trop. Storm 4.2 1,309 782,695 Ice Storm 5 1,152 343,448 Lightning 11.3 270 70,944 Wind/Rain 14.8 793 185,199 Other Cold weather 5.5 542 150,255 Fire 5.2 431 111,244 Intentional attack 1.6 340 24,572 Supply Shortage 5.3 341 138,957 Other External cause 4.8 710 246,071 Equipment Failure 29.7 379 57,140 Operator Error 10.1 489 105,322 Voltage Reduction 7.7 153 212,900

March 12, 2014: The U.S. could suffer a coast-to- coast blackout if saboteurs knocked out just nine of the country's 55,000 electric-transmission substations on a scorching summer day, according to a previously unreported federal analysis.

http://online.wsj.com/news/articles/SB100014240527023040201 04579433670284061220?mg=reno64-wsj Frequency and Impact of Electrical Outages is Growing

Year Total number of outages People affected 2008* 2,169 25.8 million

2009 2,840 13.5 million

2010 3,129 17.5 million 58 % 2011 3,071 Increase 41.8 million over 5 years 2012 2,808 25 million 2013 3,236 14 million

Interruptions in manufacturing process; Waste

Transportation Networks Function; Traffic Economic Loss of data, network Losses connectivity; downtime

Refrigeration Food Spoilage; Waste

Blackout Public Health and Safety Loss of Communications Threats

Banking Networks; Funds Availability

Economic Loss $12,500

Residential Median Loss per day to small businesses for Commercial shutdown due to power industrial outage

Sources: Lawrence Berkeley Lab, Symantec Corporation August 14, 2003 NE Blackout

• More than 50 million people, loss of 61,800 MW in power • 8 States and 1 Canadian Province Impacted • 30 hours to restore • Manufacturing disrupted • 531 generators tripped • 19 nuclear generators at 10 plants • Cost: $7 and $10 billion Impacts from the 2003 Blackout

• Chrysler - lost production at 14 of 31 plants; 6 were assembly plants with paint shops. In total 10,000 vehicles had to be scrapped. • Nova Chemicals - plant outages impacted 5 facilities, disrupting processing; reduced earnings in third quarter by $10M. • Duane Reade, Inc. NY Drugstore- 237 stores closed - sales loss totaled $3.3M • Airports - 1,000 Flight Cancellations (Toronto, Newark, New York, Detroit, Cleveland, Montreal, Ottawa, Islip, Syracuse, Buffalo, Rochester, Erie and Hamilton) • NYC - Comptroller – Losses exceed $1B – including $800M gross city product

Diesel: The Lifeblood of the Recovery New Jersey gets diesel waiver Effort (Data Center Knowledge, October 31, 2012) to avoid shortfall after Sandy (Reuters, October 31, 2012) “Much of the Internet is currently running on diesel fuel and priority The Environmental Protection service contracts. Emergency Agency on Wednesday granted New backup generators powered by diesel Jersey a temporary waiver on Ultra are helping many East Coast data Low Sulfur Diesel (ULSD) center providers weather requirements to help counter a Superstorm Sandy. shortfall in fuel supplies in parts of the state following Hurricane Sandy. The importance of diesel in the post- Sandy economy is hard to overstate. The EPA determined that an In the wake of Sandy, diesel is the "extreme and unusual fuel supply lifeblood of lower Manhattan, where circumstance“ that would limit generators are currently providing supplies of ULSD that can be used in virtually all the area’s electricity. mobile nonroad generators and pumps used for emergencies.

www.dieselforum.org Technology Choices for Emergency Backup Power

Stored Energy Systems Generator Sets Solar with storage, (Internal combustion engine + Flywheels electrical power generator + electrical controls/switchgear) Uninterruptible Power Supplies • Diesel (UPS) Battery Based • Gasoline • Natural Gas Turbines Combined heat and power • Propane

Fuel Cell Systems Electrical generators come in many shapes and sizes can be stationary or portable and use different fuels

Homeowners Business Portable -- Typically Gasoline Mobile, Stationary – Stationary -- Natural Gas or Propane Diesel, Natural Gas, Propane

Contractor, light-industrial Typically portable job-site, short-term use (Diesel)/gasoline What are the types of Electrical Power Generators?

Gen Set Application Purpose Stationary Emergency Emergency power for buildings, data centers, cell towers, manufacturing. Todays (Can include <100 hrs. demand response use. Focus Includes testing hrs.) Nonroad Mobile – Rental power, portables owned by Emergency utilities, municipalities, contractors Peaking Municipalities, utilities, manufacturing owned power source. Turned on when grid power price is high. Demand Response Utility or industry owned power production for a facility or feed to the grid based on grid operator request. Combined Heat and Power Hospitals, industry providing facility heat and electricity on a continuous basis Continuous or Prime Asphalt Plants, Rock Crushers, island power BATTERIES

ADVANTAGES • Scalable for specific use • Easy replacement and maintenance costs • Assists in temporary or short DISADVANTAGES power outage durations • Increased maintenance and “down time” • Not suitable for lengthy power outages lasting more than 60 seconds Technology Choices for Generator Sets

• Rapid Response - For use in 10-second start conditions: Liquid Fuels: Gasoline & Diesel Gaseous Fuels: Natural Gas & Propane • Portable Market Gasoline: smaller output with limited commercial use Diesel: larger powerband, most common rental choice

• Stationary Market Natural Gas/Propane: 10 kW through 1.8 MW output Diesel: 10 kW through 3000 kW output GASOLINE CONSIDERATIONS

ADVANTAGES DISADVANTAGES • Fuel availability • Fuel Energy density and • Output Limitations, heat Independent of the limit size Utility network • Durability compared to • Cold Start Capabilities diesel • Reliability • Shelf life and Storage limitations of fuel • Portability • Fuel Cost • Fuel Safety • Emissions – carbon monoxide poisoning Diesel Considerations

ADVANTAGES DISADVANTAGES • Highest BTU content for the • Shelf life & storage volume- power density limitations of fuel • Combustible, but not volatile. • Fuel Cost • Safer than flammable liquid • Independent of the Utility Grid • Permitting Requirements – Important for earthquake prone areas • Start Time • Durability • Reliability • Portability Gaseous Fuels: Natural Gas & Propane

ADVANTAGES DISADVANTAGES • Power density is much less than Diesel, requiring larger engines to • Steady national fuel supply similar output (kW). supply • Less durable compared to gasoline • Generally Lower fuel and diesel counterpart cost (NG) than diesel • Seasonal supply shortages and Cold weather start concerns for propane • No fuel storage costs • Reliance on utility for natural gas, (NG) and limited storage capability for propane • Some concerns during natural disasters affecting fuel supply, earthquakes and severe storms or fires. Concluding Thoughts

• Being prepared for power outages is good business, economic and health and safety sense. • Many fuels and options are available and selection is based on electrical supply needs, budget, other considerations. Not a one-size fits all. • Government Incentives have proven valuable to business owners to make back-up power investments. For More Information, Visit the Leaders in Power Generation

• Caterpillar

• Cummins

• John Deere

• Volvo Penta

• CNH Industrial

AGCO/Massey Ferguson, Isuzu, MTU Onsite Energy, Yanmar