The Energy Crunch: As Energy Costs Spiral
Upward, Some Campus Innovators Are Finding Better Ways to Provide Power
By G. Jack Urso,
University Business, August 2004
Rising energy
prices are spurring university and college administrators to take steps to cut
costs, ensure adequate power, and implement energy-saving initiatives in an
increasingly technological-dependent campus environment.
These issues
have recently become more relevant due to the impact of rising energy costs,
coupled with such major events as the California energy crisis of 2000 and the
Northeast blackout of 2003. Moreover, since oil and gas supplies--and
prices--appear to be in a roller coaster mode due to unstable Middle East
conditions and, in general, more global energy consumption, IHEs need to
examine their power infrastructure to ensure a steady flow of power at a
reasonable cost.
The upside is
that IHEs can recoup hundreds of thousands of dollars, if not more, by
implementing a comprehensive energy management plan. In order to realize such
savings, however, both energy production and consumption must be addressed.
Power
101
Power is
provided to a campus either through an external grid, such as a local utility,
or an internal grid by generating electricity onsite. Institutions with
important scientific or medical facilities likely already have some type of
backup power available. The California energy crisis of 2000, the blackout of
2003, and other recent events reinforce the need for colleges and universities
to consider upgrading their power generating capabilities from backup supplies
for certain buildings to a dedicated power plant capable of providing part or
all of on-campus power requirements.
Even with its
own power plant, a college or university may sometimes need to draw from the
external grid to supplement its own needs. The rate structure under which the
university purchases power from the local utility determines that cost. Under
some rate structures there may be times when temporarily drawing power from the
external grid is more cost efficient. Having the ability to switch from
campus-supplied power to the external grid allows a university to maximize its
savings potential rather than be locked into the rate structure of the local
energy provider.
Some
universities have the resources to own and operate their own power plants,
while for others this is not always a necessary or realistic option. Consider
the differences in how Princeton University (NJ), Texas Tech University, and
the University of Florida at Gainesville provide for their own power
requirements.
Princeton
University has a daytime population of approximately 10,000 people: half
students and the remainder a combination of researchers, faculty, and staff.
The university has been providing power since 1996 to its 500-acre campus with
one General Electric (GE) LM1600 gas turbine (www.ge.com/en). The turbine's
technology, which is based on the jet engine that powers the F18 fighter
aircraft, produces 70 to 85 percent of the electric power required by the
campus all year. The LM1600 is designed so that in addition to the power
produced by running the turbine, the hot air of the exhaust is harnessed to
produce steam in a process called cogeneration (cogen). On moderate days, just
one LM1600 online is sufficient to provide heat and power for the campus. The
energy plant manager for Princeton, Ted Borer, estimates that the university
roughly saves about $3 million a year by producing its own power through
cogeneration.
Texas Tech
University, located on 1,839 acres in Lubbock, does not own or operate a power
plant; instead, local energy provider Lubbock Power and Light (LP&L)
(www.lpandl.com) supplies its energy needs. Usually, the facility providing
that energy is LP&L's Brandon Station, located near the Texas Tech campus,
which is powered by GE's 21 MW LM2500 gas turbine. When in operation, the
turbine's output is roughly equal to the university's demand, according to
David Goode, interim production superintendent for LP&L at Brandon Station.
Rising gas
prices, however, resulted in LP&L temporarily reducing operations at
Brandon Station for several months in 2003 and 2004, during which time the
company drew power from other sources to supply Texas Tech. The ability to
switch power sources depending on economic conditions provides the opportunity
to take advantage of the lowest price available in the marketplace.
The University
of Florida at Gainesville is situated on a 2,000-acre campus with more than 900
buildings. UF's cogen plant is owned by Progress Energy
(www.progress-energy.com) and is operated as a baseload plant supplying
electric power to an external power grid (a baseload plant can handle all or
part of the minimum load of a system, produces electricity at a generally
constant rate, and runs continuously). Three 69KV feeders enter the university
from various directions, forming the grid from which the university buys its
power. The plant's LM6000 gas turbine, provided by GE, when operating at
maximum output only meets approximately two-thirds of the university's peak
power requirements. UF owns a pair of boilers, also operated by Progress
Energy, which are used to supply steam to its campus during shutdown and
maintenance of the LM6000. In case of extreme weather conditions, the boilers
can also be used in conjunction with the LM6000 when demand exceeds the 220
KPPH maximum generating capability of the cogen plant. Thus, a sufficient
supply of energy can be maintained during short duration peak spikes, according
to Nick Florentine, utilities planning engineer for UF Gainesville.
Supply
and Demand
Power demands,
along with fuel prices, are increasing. According to Princeton's energy plant
manager, Ted Borer, between now and 2015 the university expects to see an
increase from 11,000 tons peak cooling demand to about 20,000 tons peak demand
(cooling water is used primarily for air conditioning, but also for some
specialized research equipment such as lasers and CAT scan equipment).
Additionally, over the same time period, campus electric demand is expected to
increase from 21MW to nearly 30MW and steam demand will increase from a peak of
244,000 pounds of steam per hour to approximately 280,000 pounds per hour.
UF's Nick
Florentine reports that despite a decrease in lighting costs with the shift
from incandescent to high reflectivity fluorescent fixtures, the university's
electric power demand had grown from three to four watts per square-foot to 17
to 18 watts per square foot in some cases.
"The design
team has estimated our latest research building at 20 to 25 watts per square
foot," says Florentine. "Whether it's because of students,
professors, or support staff, the number of personal computers, cell phone chargers,
and Palm Pilots had added significantly to the electrical and heat loads."
The academic
departments that constitute the largest consumers of electricity and steam on
UF's Gainesville campus include the Health Science Center, the Institute of
Food & Agricultural Sciences, and the Chemistry, Engineering, and Physics
departments.
"We see
increases in medical research, cancer/genetics, biomedical engineering, basic
engineering, and food production research," continues Florentine.
"The analytical tools and diagnostic imaging units put big loads on our
electrical distribution system. We expect this to increase dramatically in the
near future."
Rating
Rates
While Princeton
supplies most of its own electricity, the university relies on the Public
Service Electric and Gas Company (PSE&G) (www.pseg.com) for about 15
percent of the annual power needs.
When drawing
power from the external power grid, a college or university may either be
locked into a fixed rate (predictable tariff) or a rate that changes depending
on when the power is drawn (time-of-day tariff). Princeton at one time
purchased its external grid power from PSE&G at a predictable tariff rate;
however, as of August I, 2003, the rate switched to a time-of-day tariff.
Although the fixed-rate, predictable tariff is easier to work with, the
market-based pricing of a time-of-day tariff allows those with operating
flexibility an opportunity to save a significant amount of money compared to a
fixed-rate tariff, according to Borer.
"The change
in the rate structure more accurately reflects the value of electricity at any
given time," says Borer.
UF's electric
rate is a general service time-of-use tariff. Demand is based on the maximum
30-minute average demand for the month with no ratchet clauses. A ratchet
clause is a contractual mechanism wherein a utility company determines the
billing demand for the billing cycle based on a comparison of the actual
demand, historical demand, and possibly the contractual demand. Without the
ratchet clause, only the current month's average is considered in determining
the cost.
Whether locked
into a predictable fixed rate or time-of-use tariff, a university is beholden
to the local utilities and the market forces that affect their businesses. The
more power a university can generate for itself, the more effectively it can
meet growing power demands and control costs. For this reason, as well as
ensuring a reliable source of electricity, having an on-campus power plant
becomes an attractive option.
Under the
time-of-day tariff, it is likely that there will be times during the night or
weekends when operating Princeton's LM1600 will not be the lowest cost option.
So, while there may be more accounting involved with a time-of-day tariff, the
savings could be quite appreciable due to the flexibility it offers. Because
Princeton generates much of its own power, costs incurred by purchasing power
off the grid are mitigated.
Time
to Upgrade?
Upgrades are an
important component of an overall energy management plan. Upgrading power
generation equipment on a periodic basis maintains efficiency and keeps costs
down. The fiscally conscious university or college may decide to defer the cost
of replacement equipment in a tight economy, but can it really afford not to?
As many homeowners have experienced, even though the old furnace in the
basement still works, a new furnace would more efficiently provide heat at a
lower monthly cost.
Upgrades to
Princeton's power plant, built in 1996, have enabled it to keep pace with
demand and provide for more efficient power production. Boilers are being
upgraded to increase peak steam output, and chilled water production capability
is also being increased to keep up with expected heat and air conditioning
demands. To take advantage of the large cost difference between daytime and
nighttime electric rates, Princeton is adding "thermal storage" in
the form of 2.5 million gallons of chilled water. The chillers will be run at
full load to cool off the stored water during the night when they operate more
efficiently and power costs are lower. The campus can then be cooled during the
day using the stored chilled water.
In addition to
expanding capacity, upgrades can also improve the performance of older turbines
nearer to the standard of the current production models, keeping costs down,
efficiency up, and keeping pace with technology, demand, and environmental
regulations. Upgrade packages to achieve the same results between similar model
turbines may vary due to factors such as age, location, and operating cycle.
As one would not
expect a 21st-century university or college to operate with a 20-year-old
computer system, neither should the campus power plant. Turbine control
systems, also known as a Human Machine Interface (HMI), maintain and monitor
performance. Older control systems, however, can be expensive to maintain as
replacement parts become scarcer. To help keep maintenance costs down while
taking advantage of the latest technology, LP&L's Brandon Station replaced
its old and obsolescent Woodward 501 digital control system with a new Atlas
control system, which has an improved diagnostic capability. HMIs can be
upgraded to a Windows-based system with either a desktop or panel-mounted PC.
By incorporating
steam injection and/or a process such as General Electric's SPRay INTercooling
(SPRINT) system, the power, heat rate, and overall efficiency of a turbine can
be improved. Other upgrades may include rebuilt/refurbished uprated engines,
flow enhancers, liquid fuel treatments, and fuel system upgrades. Additionally,
water and steam injection systems reduce emissions, and may be an important
consideration as turbines get older.
Scheduling a
turbine overhaul can be a lengthy process. The longer the unit is offline the
more costly it becomes, since power has to be drawn from the external power
grid to make up for the lost generating capacity.
In order to
avoid costly downtimes during overhauls, leasing a gas turbine is a possibility
users may consider to keep the plant operating while their own engine is being
repaired. An alternative is to exchange an older gas turbine for a newer model,
essentially "swapping out" an older engine with a new or rebuilt one
for improved performance and reliability.
When selecting a
turbine for an on-campus power production facility, take into consideration how
difficult or easy it will be to upgrade the unit. Purchasing the right service
package from the manufacturer can also help manage the costs of maintenance,
repairs, and upgrades.
Waste
Not, Save a Lot
As the old
saying goes, if you take care of the little things, the big things take care of
themselves. Consider, for example, those two ubiquitous inhabitants of all
colleges and universities, computers and vending machines. Both are alternately
abused and ignored.
Can small efforts,
such as turning off unused equipment, add up to significant savings? Michigan
State University could save a approximately $300,000 a year if its faculty and
staff would turn off their computers at night, according to one media report.
That's enough money saved to provide power to nearly three average-sized
college residence halls for a year.
"In the
mid-'80s, groups of people shared computers and a few had Internet
access," says Borer, referring to Princeton University. "Today,
including central servers, there are probably more than 10,000 computers on
campus. If each one draws 150 watts, we need 1.5 MW just for computers. That's
more than 10 percent of our average campus demand."
According to
University of Florida records, there are at least 26,836 computers on campus,
reports Jeff Johnson, UF's energy management coordinator. Although campus
administration requests that users shut off their computers at night, if, for
the sake of argument, all computers are left running 24 hours a day, seven days
a week, costs quickly add up.
If, noted
Johnson, on average each UF computer consumes 400 watts (including monitors and
other peripherals), with all 26,836 computers running at least 720 hours a
month, the monthly energy consumption would total 7,728,768 KWh. At current
local rates for the University of Florida, that would cost around $458,316. The
annual energy consumption cost for the computers would total $5,499,792.
"If we cut
the runtime of these computers to 220 hours (each) a month, we could see a significant
reduction in electrical consumption," said Johnson. "If all 26,836
computers were only operated when needed this would result in a monthly cost of
$140,041, saving an estimated $318,275 each month. The annual savings would
come out to $3,819,300."
Vending
machines, which can number in the dozens, if not hundreds, on a large
university campus, provide service 24 hours a day, seven days a week, yet are
only used a fraction of that time. Devices that reduce the amount of
electricity drawn from vending machines when not in use have been available for
some time now. Princeton, after a yearlong test, installed USA Technologies
Vending Miser (www.usatech.com) throughout campus. As a result, the university
reduced vending machine energy consumption by 40percent, saving about 20 KW
continuously.
The University
of Florida's Gainesville campus has 582 soft drink vending machines. With an
average consumption rate of 10.3 KWh for each machine, at current electrical
rates it costs $129,750 a year to operate the machines.
"By adding
a Vending Miser to each machine we can achieve savings between 24 percent to 51
percent," reported UF's Johnson. "Thus, we could expect savings
ranging from $31,140 to $66,172 annually. We are working towards placing
Vending Misers on all drink vending machines."
A full range of
these devices are available from several companies to regulate the power
consumption not only of vending machines, but also for many types of power
hungry office equipment, monitors, and laser printers.
Michigan State University,
in addition to installing Vending Misers in the more than 300 vending machines
on campus, has an ongoing $4 million relighting program to change over
old-style fluorescent lighting to more energy-efficient fluorescents as well as
replacing art incandescent bulbs with compact fluorescent righting where
possible. According to MSU's Campus Sustainability Report in September 2003,
upgrading fluorescent tight fixtures and bulbs will save the university
$250,000 a year while replacing 162,000 tight bulbs.
Plugged-In
Savings
Realizing any
potential savings by implementing an energy management plan requires a
committed staff and support from the university or college administration.
Positions such as an energy management coordinator are vital to the overall
success of a comprehensive program. The plan needs to take into account not
only how energy is being consumed in buildings and by power-hungry scientific
research equipment, but also by students, instructors and staff, and yes, even
vending machines and personal computers.
Back the plan up
with incentives. For example, campus recycling programs often encourage
participation by returning a percentage of the savings to the college
community. Administrators could provide similar incentives for energy conservation
by reinvesting a percentage of the savings realized from towered consumption
back to the departments that contributed the most towards conserving energy or
supporting a high profile project or expansion of academic facilities.
Alternatively, the savings could be used to reduce or supplement some student
fees.
Universities
that provide their own power can keep costs down through upgrades that allow
older turbines to continue operating at peak efficiency or by harnessing a
turbine's exhaust to provide steam for heating (cogeneration), turning a
resource that would otherwise be wasted into a commodity. Wellesley College
(MA) installed its first cogeneration plant in 1994 with four JMS 616 natural
gas engines manufactured by Jenbacher AG of Austria (www.jenbacher.com), which
was recently acquired by General Electric. After adding a fifth JMS 616 engine
in 1998, Wellesley now receives 97 percent of its total power needs from the
Jenbacher power plant. According to Jenbacher, as of 2002, Wellesley College
estimated a savings of approximately $1 million annually in energy costs with
its own dedicated, on-campus power plant.
Acquisition
costs can be managed by participating in engine exchange programs that allow a
university to purchase an affordable, recently overhauled turbine. Consumption
can be dramatically reduced with such devices as Vending Misers and simply by
having staff turn off their computers at night.
Despite rising
energy costs, corteges and universities can see significant savings by curtailing
the cost of power. Short-term goats can be realized with a proactive energy
conservation program white long-term goals, such as providing low-cost
electricity to a growing power-hungry campus, can be met by the construction of
a dedicated campus power plant. A comprehensive energy management program can
potentially recoup thousands of dollars annually for even a small campus, white
a large university could save hundreds of thousands, if not millions, of
dollars. Even modest savings can help retain teaching positions, purchase
needed equipment, or fund threatened extracurricular programs.
Building an
on-campus power plant is not necessarily dependent on the size of the campus.
Princeton University's 500-acre campus generates its own power while the 1,839-acre
Texas Tech University campus draws power from the local utility provider. The
primary considerations include the type of power used (gas, coal,
hydroelectric, nuclear), how much power the utility must buy from other
companies to supplement its own needs, whether the rate power is purchased at
is fixed or variable and how well maintained the local distribution grid is.
"There may
be localities where the transmission system may be bottlenecked," observes
Mohammad Qayoumi, vice president of administration and chief financial officer
of California State University. "This means that a university may still
have to look at an independent power generation solution due to insufficient
energy distribution infrastructure at the local level to meet its needs."
Managing energy
costs may require a new team of experts. Some IHEs are centralizing
responsibility for energy programs through the creation of specialized
positions or departments. The University of Florida maintains an energy
management coordinator position whose job it is to monitor energy usage and
management. UF and Michigan State University both have Offices of Campus
Sustainability, which help their universities meet projected energy
requirements while considering the overall environmental, economic, and social
impact of development.
The
Environmental Protection Agency helped establish Michigan State University's
Office of Campus Sustainability with a grant. After three years operating under
EPA grant the university began fully supporting the office in 2003.
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