This document summarizes a presentation about New York's Combined Heat and Power Acceleration Program. It defines CHP as using a single fuel source to generate both electricity and heat simultaneously. It describes New York's challenges with aging energy infrastructure and the goal of the NYSERDA program to incentivize 25 MW of new CHP projects. The program provides incentives through a catalog approach to pre-qualified CHP systems between 50 kW and 1.3 MW in size. Outreach consultants help identify and support customers through the full process. To date, the program has supported over 60 new CHP projects totaling 12.8 MW of power.

1. What’s Hot?
Combined Heat and Power – A
New Approach to Project
Acceleration
Lucy Neiman – ERS
AESP National Conference, 2016
Feb. 3, 2016 Phoenix, AZ

2. Agenda
• Overview of CHP
• The New York challenge
• NYSERDA Accelerator Program
• Outreach services
• Results to date
• Conclusions

3. Definition:
• It is the use of a single source of fuel to
simultaneously generate the co-products of
heat and power (electricity).
What is CHP?
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Fuel CHP Machinery
Electricity
+
Heat
(DHW,
space
heating,
process)

4. Benefits of CHP
• 2/12/2016
4

5. The New York Challenge
• Indian Point Energy Center (IPEC) license
renewal uncertain – 2,000 MW capacity
• Con Edison has projected capacity
constraints in targeted areas; i.e. BQDM
• CHP is difficult in NYC; financing, complex
permitting, retrofitting and space
constraints
• Resiliency and critical infrastructure are
key
• REV – Reforming the Energy Vision

6. NYSERDA’s CHP Acceleration
Program
• In 2014 Con Edison and NYSERDA
teamed to provide 25 MW of demand
reduction from CHP under NYSERDA’s
CHP Acceleration program
• Incentives for small/medium systems
• 50 kW to 1.3 MW in size
• “Pre-qualified” CHP program
• Vendor applies for incentive
• Incentive goes to vendor
• $1.5M cap per project

7. The Catalog

8. The Catalog

9. NYSERDA Bonus Incentives
• NYSERDA offers bonus incentives
of 10% for CHP:
– For critical infrastructure such as
hospitals, nursing homes, food
distribution centers, emergency
command posts, Red Cross or Office
of Emergency Management
designated facilities of refuge, etc.
– For sites within Con Edison’s CHP
Target Zones

10. • Conservative guidelines established by
NYSERDA from past projects
• Applications that fall within the sizing
guidelines will receive a streamlined review by
NYSERDA
CHP Sizing Guidelines
10
Building Type Microturbine Size Maximum
Reciprocating Engine
(RICE) Size
Multi-family Housing 0.25 kW/Apartment 0.35 kW/Apartment
Nursing Home 0.15 kW/Bed 0.25 kW/Bed
Hospital 1.4 kW/Bed 2.0 kW/Bed
Hotel 0.14W/Room 0.20 kW/Room

11. How Much Does It Cost?
System
Size
Typical Customer
(these are real
examples)
Total Cost NYSERDA
Incentive
Out-of-
pocket
Expense
% Covered
by
Incentives
200 kW
Multifamily 500 units $625,000 $350,000 $275,000 56%
Multifamily 450 units $850,000 $350,000 $500,000 41%
300 kW Multifamily 700 units $1,800,000 $561,000 $1,239,000 31%
400 kW
10-story @ 60,000
sq.ft. mixed-use
residential &
commercial
$1,170,000 $454,000 $716,000 38%
600 kW Hotel 400 rooms $1,800,000 $930,000 $870,000 51%
800 kW
7-story @ 200,000
sq.ft. mixed-use
commercial
$3,400,000 $1,276,000 $2,124,000 37%

12. • ERS hired by NYSERDA; Free
service
• End-to-end customer support
– Guidance and consultation
– Customer education
– Supporting feasibility assessment
process
– Guidance on selecting an appropriate
system – pre-screening tool
Outreach Support

13. • Vendor Expos – hold one per
quarter in different venues often
with tours of actual installations
• Target identification and outreach
• Site visits as part of pre-screening
and outreach
• Coordination with vendors – site
visits, bid interest
Outreach Support
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14. Results to Date
• Historical program performance:
– Program years 2000 – 2012: $100M
produced 100 projects for 100MW;
rate <10 projects/year
• Two years of full program
implementation (2014-15)
produced 63 applications in house
for 12.8 MW
– Avg. 204 kW per project; total
committed incentives $20.6M

15. Recent Updates
• Con Edison will match NYSERDA’s
CHP incentives for qualifying
opportunities in the BQDM
(Brooklyn Queens) targeted area
• Customer commitments required
by Feb. 29, 2016

16. Conclusions
• CHP delivers reliable power, lower
energy bills, reduced carbon
footprint; key component of New
York REV initiative
• Catalog approach helps expedite a
complex acquisition process
• Marketing, outreach support and
customer handholding help
increase participation

17. Contacts
• Lucy Neiman - ERS
– lneiman@ers-inc.com
– 978-478-5326
• Gita Subramony - ERS
– gsubramony@ers-inc.com
– 212-789-8182, x292
• www.nyserda.ny.gov/CHP-
Acceleration