FEDERAL ENERGY MANAGEMENT PROGRAM Using Distributed Energy Resources A How-To Guide for Federal Facility Managers Introduction combustion turbines, cogeneration, and energy storage systems. As one of today’s busy Federal facility or energy managers, you may be seeking ways to solve prob- How are DER systems used? lems such as high energy costs or low electric power DER systems can be used in several ways. They can reliability at your facility. If so, distributed energy help you manage energy bills and ensure reliable Distributed resources (DER) could be the solution you’re power by augmenting your current energy services. looking for. Energy DER systems also enable a facility to operate inde- What are distributed energy resources? pendently of the electric power grid, whether by Resources: choice or out of necessity. Certain DER systems can Distributed energy resources are small, modular, even lower emissions and improve fuel utilization A How-To energy generation and storage technologies that on site. provide electric capacity or energy where you need Guide it. Typically producing less than 10 megawatts Utilities can use DER technologies to delay, reduce, (MW) of power, DER systems can usually be sized or even eliminate the need to obtain additional to meet your particular needs and installed on site. power generation, transmission, and distribution equipment and infrastructure. At the same time, DER systems may be either connected to the local DER systems can provide voltage support and electric power grid or isolated from the grid in enhance local reliability. stand-alone applications. DER technologies include wind turbines, photovoltaics How do I know if DER systems are the right Wind systems (PV), fuel cells, microturbines, choice for my facility? reciprocating engines, Today, several economic and environmental factors make it worthwhile to consider DER. These factors include the high prices associated with both electric Energy storage systems energy and fuel in recent years. Uncertain fuel sup- plies and the increasing potential for disruptions in electricity service are prompting Federal man- agers to look for alternatives to traditional energy providers and for new ways to supplement current supplies. Solar systems Particularly where a facility’s energy-producing Microturbines infrastructure is aging, it may be time to review current operating costs and maintenance require- ments. The performance, cost, and availability of DER technologies have all been improving steadily over the past several years. New technologies are much more efficient than old ones, so a replacement or upgrade may pay for itself sooner Fuel cells than expected. Also, energy security is a primary concern at many Federal facilities. In those cases, DER systems U.S. Department can power mission-critical loads, reduce of Energy hazardous or costly power outages, and Office of Energy diversify the local energy supply. DER systems are made up of many Efficiency and Renewable Energy different power-generating Military facility energy managers, technologies. however, may want to consider the likelihood of privatization in deciding Internet: www.eren.doe.gov/femp/ FEDERAL ENERGY MANAGEMENT PROGRAM whether to invest in a DER system. If well as passive solar design and other the facility's utility infrastructure could effective techniques. (See FEMP’s Web STEP 1: soon be sold to a private entity, it might site, www.eren.doe.gov/femp/, for Analyze your not make economic sense to invest more information about energy-efficient energy needs in a new DER system that would be facilities.) The more you can reduce your unacceptable to a potential buyer. But in energy requirements, the smaller you the right circumstances, even military can size the DER system you will be facilities can benefit from using DER. installing. Here are seven steps you can STEP 2: follow to obtain a DER system that’s Select DER What is the purpose of this guide? right for you. technologies The Department of Energy’s (DOE’s) Federal Energy Management Program STEP 1: Analyze Your (FEMP) has established the Distributed Facility's Energy Needs Energy Resources Program to assist STEP 3: In this step, you can determine what Screen the Federal agencies in implementing DER your facility’s energy needs are, what technologies projects at their facilities. FEMP pre- problems you need to solve, and what pared this How-To Guide to assist facility benefits can be gained by using DER managers in evaluating potential appli- systems. This list of basic DER applica- cations and benefits. The guide also pro- tions will help you determine which one STEP 4: vides practical, step-by-step advice on or ones apply to your facility. It will also Acquire resources how to carry out a Federal DER project. help you choose appropriate DER tech- and assistance It describes and explains— nologies in Step Two. • DER applications, and the potential • Standby Power. Problem: Your power benefits of using DER in Federal supplier has an unacceptably high facilities STEP 5: incidence of service interruptions, or Develop a • DER technologies, and how to match takes a long time to restore service project plan them to applications after an interruption. This is called • A step-by-step approach to imple- low reliability, and the result is a shut- menting projects down in operations until power is restored. Solution: Install a DER sys- STEP 6: • Barriers that you may encounter, and tem that can meet your power needs Address potential how to overcome them when service is interrupted, to serve barriers • Resources that can assist you in critical loads until service is restored. implementing new DER projects. Benefits: Highly reliable operation, We hope this guide helps to make your minimal down time. STEP 7: DER projects a success. • Low-Cost Energy. Problem: Your Install and operate energy supplier has high rates. your DER system Seven Steps to Success Solution: Install a DER system to gen- How do you, as an energy or facility erate some or all of your facility’s power using renewable technologies, Following these seven steps will help you manager, determine whether DER will implement a successful DER project. make sense for your facility’s energy or change to more efficient and clean- er sources of fossil fuel generation. needs? And if so, which technology or needs electric energy, but it also has Benefit: Lower energy bills. system is the best? Finally, what is the other energy needs, for example, to process you need to follow to get a • Stand-Alone Systems. Problem: Your heat or cool water or interior spaces. DER project financed, designed, facility needs electric energy, but it Solution: Install a DER system to installed, and operating? is in a location that can’t be served generate power and use the waste Before even considering DER, make economically by traditional utilities. heat for auxiliary processes that sure you have taken advantage of all Solution: Install a DER system to gen- would otherwise require fuel. the energy-saving measures that are erate power dedicated solely to off- Benefits: Substantially greater available and applicable to your facility. grid loads. Benefits: Independent efficiency, lower energy costs and fuel These include using highly efficient operation, cost savings. requirements, and fewer air emis- insulation, lighting, and heating, venti- • Combined Heat and Power (CHP, or sions, in many cases. (See p. 6, lation, and air-conditioning (HVAC), as Cogeneration). Problem: Your facility Table 2, for more information.) 2 FEDERAL ENERGY MANAGEMENT PROGRAM • Peak Shaving. Problem: Your power controls, communications, fuel supplier bills you a monthly charge handling and storage systems, based on your highest peak usage CHP systems, and emission con- rate, even if it’s only a few hours each trols. You will also want to weigh month. Solution: Install a DER to important environmental and provide power during times of peak fuel-use issues. usage to lower demand charges. Benefit: Lower monthly utility bills. What are the technologies? Photography/PIX05127 Jim Yost • Improved Power Quality (PQ). Many combinations of technolo- Problem: The power provided to your gies and fuel options are possible, facility by your energy supplier is to take advantage of the way indi- not electrically "clean" or constant, vidual technologies complement each other and to make them as causing problems with your facility’s Selecting a technology requires a thorough analysis of robust and cost-effective as possi- equipment (see page 8 for details). your facility’s energy needs. Solution: Install a DER system ble. See Table 2 for comparative cost and performance information designed to mitigate the particular lower emissions (and somewhat about today’s DER technologies, which power quality symptoms you are lower power output) than those of include the following: experiencing. For example, frequent a diesel engine. In most other cost momentary outages can be effectively • Diesel Engine generator sets and operational respects, dual-fuel addressed with an uninterruptible (gensets) consist of a diesel-cycle engines are comparable to diesels; power supply (UPS) system or a dis- (compression ignition) reciprocating they are available in sizes from a tributed storage device. Benefits: engine prime mover coupled to an few kilowatts to about 10 MW at an Obtain cleaner power, ride through electric generator. The diesel engine installed cost of about $875/kW. momentary outages, protect delicate operates at a relatively high compres- • Natural Gas Engine gensets are made equipment. sion ratio and relatively low rpm. up of a reciprocating (piston-driven) Diesel engine gensets are a proven, • “Green” Power. Problem: Your facility natural gas-fueled engine using a cost-effective, extremely reliable and is in an environmentally sensitive spark-ignition system (Otto fuel widely used technology. They are area. Solution: Install low- or zero- cycle) coupled to an electric genera- manufactured in a wide range of emission DER systems that generate tor. In most other respects, natural sizes, from about 1 kilowatt (kW) up environmentally preferable power, gas engines perform similarly to to about 10 MW.