Welcome to our Webinar September 18, Copyright 2013 Diesel Technology Forum
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1 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 Copyright 2013 Diesel Technology Forum
2 About the Diesel Technology Forum Clean Diesel Energy Efficiency Emissions Environment Economics Applications Uses Legacy Products Education Outreach Research Collaboration
3 DTF members are leaders in clean diesel technology AGCO BorgWarner Bosch Caterpillar Inc. Chrysler Group CNH Industrial Cummins Inc. Daimler Deere & Company Delphi Automotive Ford Motor Company General Motors Honeywell Isuzu Manufacturing Services of America Johnson Matthey Mazda North American Operations Umicore Volvo Group Volkswagen of America MTU Yanmar America Allied Members Association of Diesel Specialists National Biodiesel Board Western States Petroleum Association
4 Your Speakers Moderator: Allen Schaeffer, Diesel Technology Forum Jason Kitchel, Caterpillar Ezra Finkin, Diesel Technology Forum Mike Jones, Maryland Energy Administration
5 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
6 Cause of Large Electrical Blackouts in the U.S Event % Events Mean Size in MW Mean Size in Customers Earthquake 0.8 1, ,900 Tornado ,439 Hurricane Trop. Storm 4.2 1, ,695 Ice Storm 5 1, ,448 Lightning ,944 Wind/Rain ,199 Other Cold weather ,255 Fire ,244 Intentional attack ,572 Supply Shortage ,957 Other External cause ,071 Equipment Failure ,140 Operator Error ,322 Voltage Reduction ,900 Volunteer reduction ,543 Copyright 2013 Diesel Technology Forum
7 Vulnerability of the Nation s Electrical Grid is Increasingly Documented ?mg=reno64-wsj March 12, 2014: The U.S. could suffer a coast-tocoast 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.
8 Frequency and Impact of Electrical Outages is Growing Year Total number of outages People affected 2008* 2, million , million , million 58 % , million Increase over 5 years , million , million Copyright 2013 Diesel Technology Forum
9 Blackout Consequences of Blackouts Interruptions in manufacturing process; Waste Transportation Networks Function; Traffic Loss of data, network connectivity; downtime Economic Losses Refrigeration Food Spoilage; Waste Loss of Communications Banking Networks; Funds Availability Public Health and Safety Threats Copyright 2013 Diesel Technology Forum
10 Economic Impacts of Loss of Electrical Power Total $80 Billion Annually Economic Loss $12,500 Residential Commercial industrial Median Loss per day to small businesses for shutdown due to power outage Sources: Lawrence Berkeley Lab, Symantec Corporation
11 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
12 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 Copyright 2013 Diesel Technology Forum
13 Copyright 2013 Diesel Technology Forum
14 Diesel s Role In Superstorm Sandy Recovery Diesel: The Lifeblood of the Recovery Effort (Data Center Knowledge, October 31, 2012) Much of the Internet is currently running on diesel fuel and priority service contracts. Emergency backup generators powered by diesel are helping many East Coast data center providers weather Superstorm Sandy. The importance of diesel in the post- Sandy economy is hard to overstate. In the wake of Sandy, diesel is the lifeblood of lower Manhattan, where generators are currently providing virtually all the area s electricity. New Jersey gets diesel waiver to avoid shortfall after Sandy (Reuters, October 31, 2012) The Environmental Protection Agency on Wednesday granted New Jersey a temporary waiver on Ultra Low Sulfur Diesel (ULSD) requirements to help counter a shortfall in fuel supplies in parts of the state following Hurricane Sandy. The EPA determined that an "extreme and unusual fuel supply circumstance that would limit supplies of ULSD that can be used in mobile nonroad generators and pumps used for emergencies. Copyright 2013 Diesel Technology Forum
15 What are the Technology Options for Backup Electrical Power?
16 Technology Choices for Emergency Backup Power Stored Energy Systems Solar with storage, Flywheels Uninterruptible Power Supplies (UPS) Battery Based Turbines Combined heat and power Generator Sets (Internal combustion engine + electrical power generator + electrical controls/switchgear) Diesel Gasoline Natural Gas Propane Fuel Cell Systems
17 Electrical generators come in many shapes and sizes can be stationary or portable and use different fuels Homeowners Portable -- Typically Gasoline Stationary -- Natural Gas or Propane Business Mobile, Stationary Diesel, Natural Gas, Propane Contractor, light-industrial Typically portable job-site, short-term use (Diesel)/gasoline
18 What are the types of Electrical Power Generators? Todays Focus Gen Set Application Stationary Emergency Nonroad Mobile Emergency Peaking Demand Response Combined Heat and Power Continuous or Prime Purpose Emergency power for buildings, data centers, cell towers, manufacturing. (Can include <100 hrs. demand response use. Includes testing hrs.) Rental power, portables owned by utilities, municipalities, contractors Municipalities, utilities, manufacturing owned power source. Turned on when grid power price is high. Utility or industry owned power production for a facility or feed to the grid based on grid operator request. Hospitals, industry providing facility heat and electricity on a continuous basis Asphalt Plants, Rock Crushers, island power
19 BATTERIES ADVANTAGES Scalable for specific use Easy replacement and maintenance costs Assists in temporary or short power outage durations DISADVANTAGES Increased maintenance and down time Not suitable for lengthy power outages lasting more than 60 seconds
20 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
21 GASOLINE CONSIDERATIONS ADVANTAGES Fuel availability Independent of the Utility network Cold Start Capabilities Reliability Portability DISADVANTAGES Fuel Energy density and Output Limitations, heat limit size Durability compared to diesel Shelf life and Storage limitations of fuel Fuel Cost Fuel Safety Emissions carbon monoxide poisoning
22 Diesel Considerations ADVANTAGES Highest BTU content for the volume- power density Combustible, but not volatile. Safer than flammable liquid Independent of the Utility Grid Important for earthquake prone areas Start Time Durability Reliability Portability DISADVANTAGES Shelf life & storage limitations of fuel Fuel Cost Permitting Requirements
23 Gaseous Fuels: Natural Gas & Propane ADVANTAGES Steady national fuel supply Generally Lower fuel cost (NG) than diesel No fuel storage costs (NG) DISADVANTAGES Power density is much less than Diesel, requiring larger engines to supply similar output (kw). Less durable compared to gasoline and diesel counterpart Seasonal supply shortages and Cold weather start concerns for propane Reliance on utility for natural gas, and limited storage capability for propane Some concerns during natural disasters affecting fuel supply, earthquakes and severe storms or fires.
24 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.
25 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
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