Development of an integrated community energy system - Study report.

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Tulita Community Energy ProjectThe Vision for a sustainable community shared by citizens, council, business, institutions, and organizations

DEVELOPMENT OF AN INTEGRATED COMMUNITY ENERGY SYSTEM

STUDY REPORT

 

Presented

July, 2004

To the

Tulita Yamoria Community Secretariat

©2004 Enterra Environmental Corporation, all rights reserved

Map of the NWT

The cover photograph was taken by a satellite and shows the area of Great Slave Lake and Lower half of Great Bear Lake with Tulita in upper left corner and the Mackenzie River and Liard River in the lower left corner of the photograph. 


Table of Contents

  1. Contact Sheet
  1. Community Description
  2. Business Structure
  3. Affiliated Project Proponents

  1. EXECUTIVE SUMMARY

                                                                

  1. INTRODUCTION
  1. Market Characteristics
  2. Description of District Energy Technology
  3. Benefit Statement
  4. Study Scope

  1. ENERGY DEMANDS
  1. Building Loads
  2. Load Diversification Factor

  1. PRODUCTION PLANT
  1. Overview
  2. Combined Heat & Power Development Concept
  3. Geothermal Production Well & Heat Pump

  1. DISTRIBUTION NETWORK
  1. General
  2. Distribution Network Pipe Routing & Sizing
  3. Distribution Piping Material
  4. Distribution System Capital Costs

  1. ENERGY TRANSFER STATIONS (ETS)
  1. General
  2. Building Connection – Heating
  3. ETS Capital Costs

  1. FEASIBILITY ASSESSMENT
  1. Capital Cost  Summary
  2. Customers’ Costs Using Conventional Heating
  3. Pro Forma Revenues and Expenses
  4. Discussion

  1. IMPLEMENTATION

  1. APPENDIX B: CAPITAL COST ESTIMATE
  2. APPENDIX C: FINANCIAL PROJECTION

  1. APPENDIX D: BUILDING SURVEY

  1. BLDG# 1 – HOTEL (8000 FT²)
  2. BLDG# 2 – BAND ADMINSTRATIVE (7500 FT²)
  3. BLDG# 3 – NORTHERN STORE (7000 FT²)
  4. BLDG# 4 – PROPOSED STAFF HOUSING (6000 FT²)
  5. BLDG# 5 – PROPOSED SCHOOL (12,000 FT²)
  6. BLDG# 6 – HAMLET GARAGE (2000 FT²)

  1. Community Description

Tulita is in the Sahtu Region of the NWT located on the banks of the Mackenzie River, 611 km northwest of Yellowknife. The community area is 52 km2, with a population of approximately 506 individuals, and 156 dwellings. There is 1 school, 1 nursing station, 1 library, 1 hotel, 1 store, 2 churches, water treatment plant, thermal generation plant, recreation centre and swimming pool (under renovation).  The hamlet of Tulita is a municipal corporation comprises of first Nation council members (elected in First Nation elections) and is represented in Yellowknife by Norman Yakeleya, MLA Sahtu.

  1. Business Structure

  1. Tulita Yamoria Community Secretariat

Name: Mr. Danny Yakeleya

Title: Chairman

Mailing Address: Box # 155

City/Municipality: Tulita

Province: NT                Postal Code X0E 0K0

Phone: (867) 588 - 3116        Fax: (867) 588 - 3119

E-mail:

Project Contact:        

Name:                        Ms.Cheryl Best

Title:                        Ex. Director

Telephone:                (867) 588 – 3116        Fax: (867) 588 - 3119

Email:                        

  1. Affiliated Project Proponents

EMISSION MANAGEMENT

  • Company: EBA Engineering

DISTRICT ENERGY NETWORKS

  • Company: Enterra Environmental Corporation

METERING SYSTEMS

  • Company: Power Measurement Ltd.

MICRO TURBINE & SWITCHGEAR

  • Company: Ingersoll/Rand

LAST-MILE CONNECTIVITY

  • GlenTel Inc.

Agencies

Potential Funding Sources

  • GNWT/RWED
  • FCM/GMEF
  • TEAM
  • INAC/ANCAP

Technological

  • IRAP
  • Yukon Energy Center
  • Arctic Energy Technology Development Lab.
  • Alaska Cold Climate Housing Research Centre (CCHRC)
  • University of Alberta – CBEEDAC – commercial building end user research centre.
  • Simon Fraser University – Energy Management Resource Group (EMRC)

  1. Executive Summary

  1. Project Overview & Description

The community of Tulita is working toward developing and implementing a long term sustainable energy solution that will provide jobs, economic development, a healthy environment and future opportunities to use renewable energy. Council decided that an integrated municipal cogeneration and district energy system, or district energy network (DEN) would serve the community needs now by utilizing renewable energy and in the future, when natural gas will be available.

  1. The Opportunity

There are 3 building clusters within the boundaries of the community that depend on diesel fueled electricity and heat energy. All of the existing buildings are fair to poor condition regarding energy efficiency. DEN could eliminate all future capital expenditures for boilers and fuel storage for new buildings being planned and provide up to a 12.5% saving on space heating costs for existing buildings.  The proposed project should be a positive addition, in terms of local economic development by retaining cash flows within the community and improving the environmental mix of energy supply to customers.  DEN should appeal to building owners due to its convenience, safety, saving of space and modernization of existing building heating systems. The next key steps include securing commitments for the thermal energy sales, fuel supply, engineering and financing. Phase 1 of the system could be in service within 6 months of financial commitment.

  1. The four principal components of a District Energy Network (DEN) are:

  1. Geothermal source;
  1. The borehole thermal exchange system (DTES)
  1. Heat pump;
  1. Heat pump removes, concentrates, and transports heat to the
  1. Microturbine;
  1.  That will increase the heat content of the water & power all electrical systems, pumps and controls; and then the  
  1. Heat distribution system;
  1. Moves heated water medium throughout buildings connected to the system through energy transfer stations (ETS). Once the heat energy has been extracted it is returned via the distribution system to the earth.  

  1. Capital Costs (Phase 1)

An estimated 12.75% saving will be passed on to the customer. The planned system will be constructed without capital contributions from any of the customers.  

  1. The Rate Structure

Energy cost is based on:

  • Demand charge for the cost of the district energy network & connection; and
  • Energy charge which tracks the price of oil.

Assuming that the system would be set up as so that all the benefits would flow back to the owner of the equipment the thermal energy price that would be have to be paid by each building owner would be $103 per MWh.

  1. Benefits

Benefits of district energy and municipal cogeneration for the province/territory, local communities, energy utilities, building owners and tenants include:

  • A given percentage reduction in consumption of fossil fuels result in an identical decrease in emissions.
  • Contributing to a greenhouse gas reduction strategy for the energy sector;
  • Providing flexible infrastructure on which to base sustainable energy systems;
  • Postponing utilities' need for, along with the costs and environmental impacts of, new energy facilities; and
  • Providing service cost reductions to building owners.

  1. Competitive Advantage

Disadvantages of Diesel Generation & Residual Heat Recovery Systems

  • The thermal output of the NWTPC power plant is directly related to the electrical demand, with no guarantee of thermal energy being delivered during peak time. Often with a residual heat recovery system, the peak heating demand does not coincide with the peak electrical demand (often late at night and during the winter).
  • Cost of system is relatively the same as a DEN because of need for heat transfer stations, and distribution pipe (which is the same material for a DEN system).
  • Because the system heating demand does not coincide with the peak electrical a demand peaking boiler are required or most cases the entire heating system.


The Competitive Advantage of “DEN” is:

  • Uninterruptible thermal energy generation by providing distribution, mechanical control, metering, and monitoring to insure the highest operational performance of the system.
  • Standby or emergency electrical energy generation to insure security and safety.
  • Integration of distributed low impact renewable energy systems into community energy mix.
  • Has the ability to switch fuels (propane/natural gas).
  • Can store thermal energy during the summer.

  1. Community Characteristics
  1. Abstract

The commercial and public buildings at Tulita total estimated space heating demand is increasing at 2.2% per annum. Potable water is heated with electric water heaters and requires an additional demand from the NWT Power Corporation thermal plant. Organizations such as businesses, government and community agencies (schools, band offices, etc.) require imported energy in their day-to-day operations. But, optimizing fuel and implementing energy management programs at their facilities is not their primary goal.  The goal of project is to reduce anthropomorphic emissions and utilize renewable energy sources by installing district energy network or DEN.  DEN is the optimum integration of individual boilers, heat pumps, co-generation, solar (thermal) collectors, short & long term thermal energy storage that supply short or long range district heating systems. The DEN installation is enhanced by thermally upgrading existing buildings and constructing buildings to R/C2000 standards for connection to the system.  The proposed DEN will be built over 3 phases, supplying 95% of the commercial & public buildings in the community.  The DEN installation is projected to produce a reduction in heating fuel (29,832 litres) & diesel (21,045 litres) and reduction in GHG emissions of 82 and 58 tonne respectively. With an additional 315 tonne in GHG emission reductions by utilization the propane fired micro turbine to power and provide heat energy to the system. The total reduction of emission is estimated at 455 tonne, which are approximately 12 % of the total annual emissions in the community. The DEN system will be able to switch to natural gas in two years when the Mackenzie Valley pipeline is completed.  

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  1. Introduction

The community depends on a diesel power generation plant for all its electricity needs. The NTPC power plant produces 1,941,049 kWh of power at an efficiency of 3.45 kWh/litre consuming 562,295 litres of diesel fuel at a cost of $421,721 (2000/01). Total P-50 heating oil sales were $695,212, for 703,901 litres in 2000/01. All fuel is imported into the community either by barge from Hay River, NT, originating from Edmonton, Alberta or by winter road. The opportunity to install a residual heat recovery system to the existing generation plant owned by NTPC is not feasible ...

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