Meeting Energy Demands While Facing the Challenges of Electric Grid Instability
A hybrid propane/ electric heat pump solution can make installation more cost-effective due to the reduced electrical peak and running loads. All of these results will vary, of course, based on the particular details of a building’s location and design and should be reviewed and assessed accordingly.
COMBINED HEAT AND POWER CASE STUDY
Photo courtesy of Propane Education & Research Council
Energy System: Combined Heat and Power (CHP) Units
Application: Industrial and Institutional Facilities
The Challenge: Today, two-thirds of the fuel used to generate power escapes as waste heat, usually through cooling towers.
The Energy Solution: We now have the ability to capture waste heat to create more electricity or to warm nearby buildings with combined heat and power (CHP) systems. CHP units generate electricity and capture the heat that would otherwise be wasted to provide useful thermal energy, such as steam or hot water, that can be used for space heating, domestic hot water, and industrial processes. CHP systems can be located at an individual facility or building or can be a utility resource or part of a district energy system but are typically located at facilities where both electricity and thermal energy are needed. CHP is currently used in over 4,400 facilities across the U.S. including factories, hospitals, colleges, and commercial buildings.
CHP and Sustainability: CHP systems are known for their energy efficiency and environmental benefits because the heat and power are produced on site, eliminating efficiency losses from the power plant. Because they operate efficiently, CHP systems combust less fuel to provide the same energy services. This efficient energy generation reduces various types of emissions, including greenhouse gases (GHGs) such as carbon, criteria pollutants (six common outdoor pollutants regulated by the EPA), and hazardous air pollutants. In addition, they can complement renewable resources such as solar and wind and allow facilities to utilize these intermittent renewable resources while maintaining reliability.
CHP and Resiliency: A 2022 report from the North American Electric Reliability Corp. (NERC) found that large portions of the country are at risk of blackouts as higher temperatures lead to more demand for energy. As much as 44 percent of commercial and industrial companies report power losses at least monthly. While combined heat and power units are used primarily for their energy-efficiency benefits as replacements for high-efficiency water heaters or boilers, some CHP units are available with black start capabilities that allow them to provide standby power when the electric grid goes down, making them effective upgrades to a building’s power resilience. In this mode, they act as a backup source of power for a building’s energy needs, including electricity, heat, hot water, and cooling for residential, commercial, and industrial applications, depending on the model and setup. During a grid outage, CHP systems function in “island mode,” automatically separating a host facility or microgrid from the utility grid and providing consistent power and thermal energy to the facility or facilities connected to the microgrid.
Facility Example: The Southeast Propane Alliance Technical Education Center (SEPATEC) is the leading propane industry trade school for North Carolina, South Carolina, and Georgia. It provides concentrated, career-focused, and hands-on propane training to students looking to start a career in the propane industry. SEPATEC’s 10,000-square-foot state-of-the-art facility in Graham, North Carolina has classrooms and a training area called Propane Village. It features equipment and tools like electrical boards, tanks, gauges, and valves for hands-on learning.
A combined heat and power system was recently installed at SEPATEC, providing another opportunity for hands-on training while allowing the facility to generate its own power. Technically, the CHP was installed as a backup power system, but in reality, it is their primary source of electricity. The CHP is tied to a 1,000-gallon propane tank, which provides space and water heating for the entire facility. The exact run time is dependent on the amount of electricity used, but a 1,000-gallon tank will generally provide about two months of standalone power generation. Going forward SEPATEC’s CHP unit will be a powerful training tool that also provides resilience, reliability, and affordable on-site power generation.
Results: CHP systems have transformative potential in commercial construction. They not only enhance energy efficiency but also significantly cut down on waste heat and emissions, providing both electricity and thermal energy right where it’s needed.
Combined Heat and Power Systems
In many building situations, the owners see the value in having a combination of space heating and electrical power generated from the same equipment. Combined heat and power (CHP) systems have been engineered and fabricated to produce both heat and electricity at peak efficiency. These CHP units use a generator to produce electricity, while also capturing heat that can be used to warm air and water. The result is reduced energy expenditures, eliminating efficiency losses between power plants and buildings, leading to a lower carbon footprint. Essentially, they create an onsite, environmentally friendly, affordable, and reliable energy source independent of the electric grid. Just as with onsite emergency generators, propane offers the same cleaner, quieter, solution for CHP compared to systems that rely on gasoline or diesel fuel. Where resilience and independence from other energy sources are needed, propane-fueled CHP systems can be a viable alternative.
Propane CHP provides energy for critical building systems and infrastructure in hospitality, healthcare, education, business, etc. without any sacrifice. On-site generation frees up the grid and still provides the energy needed for operations and vital systems. The technology is emerging for residential uses too. Units in the 1–3-kilowatt range can provide heat and power for a standard 1,800-square-foot home. Larger homes with greater demands including a pool, or multi-family dwellings would require a unit of 3-10 kilowatts of power. CHP systems can also be designed to work in tandem with other energy sources, including traditional electricity and renewable energy sources like wind and solar, and still provide back-up power and heat as needed.
PROPANE GENERATORS CASE STUDY
Photo courtesy of Propane Education & Research Council
Photo courtesy of Propane Education & Research Council
Energy System: Propane-Powered Electric Generators
Application: All building types
The Challenge: Severe weather events, including hurricanes, tornadoes, wildfires, extreme heat, and major winter storms are growing in frequency and intensity. This significantly affects the country’s electrical grid and distribution infrastructure right at the same time electricity demand may increase (e.g., heat waves increase electricity demand for cooling). Drought can reduce the amount of surface water available for cooling power plants, which reduces the electricity they can generate. High wind events, flooding, and wildfires can take down infrastructure. Data from North American Electric Reliability Corp. (NERC) shows there were 64% more major power outages during the decade from 2011 to 2021 than from 2000 to 2010. Between 2000 and 2021, about 83% of reported major outages in the U.S. were attributed to weather-related events.
Resiliency Concern: It is vital that commercial buildings are able to maintain operations during such weather/ power outage events, not only for life-safety reasons but because a loss in business or product can have major financial implications. A loss of refrigeration, heating, and air conditioning is a significant safety hazard for some, but it can also result in lost inventory, equipment, and infrastructure. Power generation that is independent of the electric grid can provide power and resilience during these severe weather events. Resilience is the ability to function after or during an ongoing natural disaster or accidental power outage.
Energy Solution: Specifying a commercial propane standby generator offers building owners or operators a degree of resilience and peace of mind that they can fulfill orders, maintain inventory, and provide ongoing customer service in the face of catastrophe. A propane standby generator can save a business thousands of dollars by keeping the doors open and the lights on. It allows businesses such as retail stores, manufacturing plants, healthcare, and hospitality facilities to resist hazards brought on by major disasters as well as keeping employees engaged and productive during what would otherwise be downtime. Related to serving customers, patients, or clients, a propane generator allows the necessary services and products to remain available. Altogether, a generator can directly reduce the magnitude or duration of a disruptive event.
Specifying Generators: There are several options for commercial-grade generators, including fuel type and delivery system. Backup generators are powered by either liquid (gasoline or diesel) or gas (propane or natural gas). The availability of these fuels and the ability to replenish the supply after a natural hazard are key considerations. Diesel is the most common fuel used for backup generators, but it has some downsides. Diesel degrades over time and requires the addition of fuel additives to prevent degradation. Diesel generators require more maintenance and are more expensive. They also have greater emissions than propane-powered generators and importantly, diesel and gasoline rely on electric pumps for distribution, which can be compromised in a power outage.
Environmental Aspects: Propane generators can also help to meet carbon reduction goals and limit emissions, as propane is significantly cleaner than gasoline and diesel and is considered a clean alternative fuel by the U.S. Environmental Protection Agency (EPA). In addition, propane is methane-free, emits extremely low levels of nitrogen oxides and virtually no particulate matter, and is becoming more available in its renewable form made from cooking waste products and plants.
Results: “Keeping the lights on” is an age-old adage for every business that now must be taken literally, as power outages and severe weather events are expected to increase in frequency and intensity unless there is a significant change in carbon emissions. Propane power generation via standby generators could be the factor that makes or breaks a business after a severe weather event or power interruption from the grid.
Notice
