What is Cogeneration and why should you invest in it? In this presentation, GREENCROWN Energy defines Cogeneration and discusses its many benefits for your organization. How can this help your company? Read on for more information. Additionally, this presentation contains information on Power Purchase Agreement (PPA)/On-Site Utility.

1. NOW is a Great Time for NY & NJ to look
at
Cogeneration

2. Why Cogeneration?
Power Reliability & Cost Savings

8. Why Cogeneration?
• Utility Substation Security Issues/Expenses
• Weather Concerns and Power Stability is a Going Concern
• Utility cannot keep up with Demand – Recession Over
• NYC & NJ population growing rapidly
• Utility Companies will not build new power plants
• Coal & Nuclear Power Plants Closing
• Indian Point 2016 - 30% of Utility Supply
• Increasing Utility Company Expenses – Natural Gas Infrastructure
• Marcellus Shale Formation – Long Term Natural Gas Abundance
• Substantial Government Incentives - CHP Partnership Goal

10. What Is
Cogeneration?

11. Simultaneous Production of Heat & Electricity

12. Why Invest in Cogeneration?
According to the U.S. Dept. of Energy, “High Rise Residential Buildings &
Hospitals can be ideal candidates for combined heat and power (CHP/
Cogeneration) systems. Many require high volumes of thermal energy by
way of hot water, steam, and/or chilling, require round the clock energy, and
have a strong need for backup/standby power in the event of a blackout.
CHP systems enable buildings to reduce energy costs, improve
environmental performance, and increase energy reliability.”

13. Benefits of Cogeneration?
• Reduces the Risk of Power Outages – Provides On-Site Reliable
Standby Power with Black start Capability
• Reduce Energy Costs by 40-60%
• Reduces Peak Demand Charges
• Provides a Long-Term Physical Hedge Against Rising Utility Costs
• Improves Power Quality
• Extends Equipment Life of Surrounding Equipment
• Substantial Federal & State Incentives
• Green Initiative – Low Emissions
• Immediate Positive Cash Flow & Quick ROI in Most Cases

14. Does My Building
Qualify for Cogen?

15. Qualify for Cogeneration?
• Do you pay more than $.08/ kWh on average for electricity (including generation, transmission
and distribution)?
• Are you concerned about the impact of current or future energy costs on your business/
property?
• Are you concerned about power reliability? Is there a substantial financial impact to your
business/property if the power goes out for 1 hour? For 5 minutes?
• Does your facility operate for more than 5000 hours/ year?
• Do you have thermal loads throughout the year (including steam, hot water, chilled water, hot
air, etc.)?
• Does your facility have an existing central plant?
• Do you expect to replace, upgrade or retrofit central plant equipment within the next 3-5 years?
• Do you anticipate a facility expansion or new construction project within the next 3-5 years?
• Have you already implemented energy efficiency measures and still have high energy costs?
• Are you interested in reducing your facility’s impact on the environment?

16. Power Purchase
Agreement
On-Site Utility

17. • No expenditure of capital
• No investment or budget required
• No financing required
• Off balance sheet
• Your cash flow is improved
• No operating or maintenance costs or concerns
• Guaranteed Energy Savings for Long Term
• Standby / Blackout Power
• Cleaner, More Reliable Power & Extended Equipment Life
(Boilers & Chillers & Motors)
• Green Benefits
Summary of On-Site Utility Benefits

18. Who Should Consider A PPA?
• Not For Profit Entities
• Home Owners Associations – Condo’s & Coops
• Buildings who want to Preserve Capital
• Buildings who need to replace old boilers & chillers
• Building Developers

19. • PPA Company Installs a Cogeneration System on your Property at No
Expense to you
• This system is now your On-Site Utility Plant, owned and operated by the
PPA company
• You are required to purchase all of the electrical and thermal energy the
system produces – usually Electricity & Domestic Hot Water & Chilled
Water for centrally chilled buildings through absorption chillers
• All energy purchased is at a guaranteed discounted rate of 5-15%
• PPA Term is usually 10-15 years
• PPA company pays for all natural gas to fuel the system
• PPA company pays for all operation and maintenance and monitoring of
the system
Typical PPA Structure

20. End User + Developer + Investor
• All have a common interest in the CHP running all the time and at
peak efficiencies
Interests Are Aligned with PPA

21. Thank You