Questions & Answers
- If on-site energy production is such a good idea why isn’t everyone doing it?
Combined Heating, Cooling and Power (CHCP) production has been the pioneered and accepted across much of the developed world with great success. See the World Alliance for De-centralized Energy (WADE) website at www.localpower.org
In Canada, CHCP is still in the early adoption stage with cogeneration of power by technologies such as wind and solar energy leading the way and with on-site heating and cooling in the form of ground-source geothermal gaining widespread acceptance. Natural gas-fired co-generation is a proven concept which TES is advocating and can be highly profitable proposition in Alberta and other jurisdictions which allow sales of power to the grid on a de-regulated basis.
- What is my Return on Investment if I install a co-generation system on my facility?
Total Energy Solutions Inc. has developed the means to capture the benefits of supplying power to the grid at times of highest demand while valuing, storing and distributing the heat produced by the engines as a primary commodity of the system. Proprietary software enables real-time and ongoing energy and pricing optimization resulting in projected return on investment of less than 4 years.
- What is my Capital Investment?
TES analyses the heating, cooling and power requirements of your facility and recommends the appropriate technology for your installation and demands which will be placed on it.
INTIAL COST TO BUILD 1WATT OF INFRASTRUCTURE:
ELECTRICITY from HYDROGEN Fuel Cells ($30)
ELECTRICITY from SOLAR Photovoltaic Cells ($10)
ELECTRICITY from WIND Turbines ($5 )
HEATING, COOLING from SOLAR Geothermal Systems ($3)
HOT WATER from SOLAR ($2)
ELECTRICITY from CO-GENERATION Plants ($1)
If the co-generation plant is also sized to meet heating demands the overall cost could approach $0.50 - $0.75 per Watt
- Is co-generation of heat, cooling and power recognized as a “green” project?
Because co-generation plants use clean fuels such as natural gas, bio-gas or syn-gas, they offset the power typically produced by coal-fired plants in Alberta, resulting in real and measurable greenhouse gas emissions reductions. TES includes the Alberta protocols for clean energy and the value of the greenhouse gas emissions credits at current market value in its assessment of infrastructure. TES’s proprietary software also calculates the GHG reductions in real time as the system is running.
- What are my risks if I decide to investigate on-site heating, cooling and power production at my facility?
At the onset, TES provides high level analyses to discern whether on-site CHCP is appropriate for you. Pre-engineering and feasibility work provides additional assurance that the choice of systems and operating regimes are economically and environmentally sustainable and profitable. Risks are identified and quantified for the customer to provide the basis for a sound business decision to proceed?
- What major changes would be required to the facility to accommodate co-generation?
The co-generation system is sized to produce the heat required by the facility and as such should be thought of as a furnace capable of producing electricity for sale to the grid. As such, existing distribution systems for heating and cooling for the building generally remain the same. Ductwork and piping simply benefits from a new source of heat.
- Is connecting to the grid a complex and expensive venture?
Grid interconnection is encouraged by the de-regulated policy framework that exists in the province, the Alberta Electric Systems Operator (see the AESO link under “linkages”) and the wires owners such as FORTIS and EPCOR who publish interconnection manuals for access to their wires. Expertise in application for and access to the grid is provided by TES and it’s engineers to insure costs are kept to a minimum. The cost of interconnection is included in the estimate of capital costs for infrastructure outlined in the question above.
- Are your systems under warranty and will they be maintained?
TES assumes full responsibility for ensuring reliable and regular maintenance of the systems installed and that they are operated for full benefit to the owner. Once established, the micro-utilities under TES’s stewardship are fully automated and maintained, leaving the owner with a ‘hands-free” profit center that is both economically and environmentally friendly.
- Are there financial incentives available to design and install CHCP technologies?
Yes. The Kyoto Protocol has been a significant stimulant and driver for the renewable energy industry with numerous programs and incentives put in place to encourage private industry to adopt the new tougher environmental standards.
TES, during the course of it’s feasibility work, fully investigates the current range of taxation benefits, federal and provincial grants and other incentives available for each particular technology being pursued.