Presentation given at A2SE Summer Study Session ENGINES OF REFORM? Mainstreaming Cogen/Trigen, Bioenergy and Gas Fired Local Generation

1. Cogent Energy
Alliance 2 Save Energy – Summer Study
Mainstreaming Trigeneration through Precinct/District Solutions
Presenter:
Felipe Kovacic
Business Development Executive
For all enquiries, please contact Cogent Energy
Email: enquiries@cogentenergy.com.au
Phone: (02) 9503 5034

2. Cogent Energy – Company Overview
• Cogent is a distributed energy (DE) company - we build, own, operate & maintain co/trigeneration facilities
for large sites – commercial buildings, hospitals, shopping centres, government complexes, industry and also
precinct energy solutions.
• Cogent provides co/trigeneration plants that integrate into site distribution systems – control, electrical, hot
water, chilled water, steam and condenser water.
• Cogent currently have 10 operational facilities in service. 3 currently under construction.
• Cogent is a 100% owned subsidiary of Origin Energy, Australia’s largest “fuel integrated generator retailer”.
• Cogent is constructing Australia’s first district energy project in Dandenong (6MWe upon stage 2 completion)
• Cogent is advancing with the City of Sydney to deliver the first stage of the Decentralised Energy Master Plan
(60MWe)
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3. Cogent Energy - Virtual Private Precincts
Cogentpower – precinct enabler
Supply multiple local sites / metered supplies through a single facility
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4. Australia’s First Virtual Trigeneration Precinct
The trigeneration plant at Coca-Cola
Place consists of:
• 774kW MWM, low NOx, gas fired
reciprocating engine coupled to a
415V generator located on level B2
which provides power to the base
building.
• 650kW two stage effect Broad
absorption chiller located on B1
mezzanine level. The absorption
chiller utilises both engine jacket
and exhaust heat and can supply
either chilled or hot water to the
building.
• Control, metering and switch gear
that will manage the plant and
interface to the site’s main switch
boards and the grid for safe
operation.
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5. Australia’s First Virtual Trigeneration Precinct
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6. Coca Cola Place Challenge
• System designed and built by third
party
• Complicated commissioning
– Assistance required from Cogent Energy
• Building’s initial winter load
insufficient for engine’s minimum
operating load
• Building’s summer load sufficient for
engines minimum load for operation,
however…
– Once absorption chiller came on,
electric chillers turned off, load was
again not sufficient
• Find load for the engine
• Deutsche Bank Place, 126 Phillip St.
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7. Key components of the arrangement
• Cogent leases Coca-Cola Place’s trigeneration energy centre from Investa
increasing the building’s capital value and the overall rental returns for Investa.
• Two Energy Service Agreements (ESA) allow Investa to purchase electricity, hot
water and chilled water from Cogent, as well as top-up peak and off-peak
electricity for both sites.
• Cogent will purchase the gas consumed by the plant and provide the monitoring,
operation and maintenance of the plant for the duration of the long-term
agreement.
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8. Cogent Energy - Precinct Heating and/or Cooling
The Next Step in Distributed Generation
Provision of thermal energies from one or more local energy centers to multiple
precinct sites is also possible with an appropriate thermal reticulation network
Cogent has significant experience in the
specification and design of thermal
reticulation networks
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9. Cogent Energy - Precinct Heating and/or Cooling
CASE STUDY – Revitalising Central Dandenong
Precinct Energy Project
Dandenong Revitalization –Australia’s first urban distributed energy precinct
• 2MWe (to be operational in Q4 2012)
• Proposed and constructed to cater for an additional 4MWe by 2017
• Underground hot water pipe network for heating/cooling to local buildings
• Est. 18,000T of CO2 avoided each year
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10. Dandenong Precinct Energy Project
Australia’s first district cogeneration facility
CONCEPT REALITY
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11. Equipment installation
Stage 1 – 2MW Genset installation
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12. City of Sydney
Sydney 2030 - Vision
The City has an ambitious plan to reduce greenhouse gas emissions by 70 per cent and
for the city to have capacity to meet up to 100 per cent of electricity demand by
local electricity generation and 10 per cent of water supply by local water capture by
2030
- The City’s goal is to produce
70% of their electrical needs
from Trigeneration and 30%
from renewables.
Image Source: Bruce Taper, Kenesis, Presentation; Green Transformers:
Revolutionising energy generation for a Sustainable Sydney - 22/7/08
More info @:
http://www.sydney2030.com.au/development-in-2030/city-wide-projects/powering-sydney-allan-jones
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13. City of Sydney
Sydney 2030 – DEMP, Trigeneration - development
Land Use and
Floor Space Building by Building electricity consumption (total and intensity)
Utility electricity and
Gas consumption data
Building by Building
Gas consumption
Building by Building
Thermal demands
Comprehensive land use
Energy and GHG emissions
analysis profile
Image source: City of Sydney distributed energy master plan - trigeneration
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14. City of Sydney
Sydney 2030 – DEMP, Trigeneration - development
Recommendations were made based upon the technical model
outputs and commercial model considerations
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17. Cogent Energy – Backoffice Capabilities
•Remote monitoring
•Metering & billing
•Operations
•Maintenance
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18. Precinct vs Stand Alone
The benefits of hosting an Energy Centre in a precinct
Load and Sizing Comparison
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Precinct Capacity 24 Jan Total kW Stand alone Capacity 15 Jul Total kW
Note: Calculations come from high level estimated approximate extrapolated analysis of a building studied to be part of the City
of Sydney decentralized trigeneration project.
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19. Precinct vs Stand Alone
The benefits of hosting an Energy Centre in a precinct
Potential Carbon Savings Comparison
0%
0%
19%
BAU Trigen stand alone Trigen precinct
40%
60%
0%
81%
100%
• Using Business As Usual (BAU) as the baseline with a 0% saving.
• The Stand Alone Trigeneration solution can produce ~20% saving, whilst the Trigeneration
solution integrated in the a precinct can provide a total of ~40% savings, this in monetary
terms over a year.
Note: Calculations come from high level estimated approximate extrapolated analysis of a building studied to be part of the City
of Sydney decentralized trigeneration project.
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20. Enabling Precinct Scale Co/Trigeneration in Australia
(from the City of Sydney’s
Decentralized Energy Master Plan - Trigeneration)
1. Reform BASIX within Low Carbon Infrastructure Zones
2. Modify the city of Sydney’s development control plan to reflect the Low Carbon Infrastructure Zones
3. Recognise the decentralised energy network in mandatory disclosure and NABERS
4. Introduce rate variations
5. Incentivise energy efficiency and low carbon energy
6. Standardise connection fees for gas and electricity networks
7. Introduce demand management rebates
8. Make state and federal infrastructure funds available
9. Introduce environmental upgrade agreements and infrastructure levy for decentralised energy
10. Introduce a price on carbon (Done)
11. Remove the regulatory barriers to decentralised energy
12. Low Carbon Zone recognition scheme
13. Streamline state environmental planning policy planning approvals for decentralised energy
14. Streamline easements and access arrangements for decentralised energy
15. NSW Handbook
http://www.cityofsydney.nsw.gov.au/council/onexhibition/TrigenerationMasterPlan.asp
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21. Facilitation of Mainstreaming
Cogent Energy – Value Proposition
• Energy efficiency – up to 80% energy efficient.
• Green credentials – up to 60% reduction in carbon emissions - improves Green Star & NABERs energy
ratings by up to 2 stars.
• Emergency back-up – can be configured to displace back-up diesels.
• Financed - minimal capital outlay, just one monthly energy bill.
• Reduced Administration – from the design phase through to authority approvals, installation and actual
operation, Cogent involvement will significantly reduce the administrative requirements of the client.
• Flexibility and innovation – Multiple feeder / site capability with cogentpower!
• Skin in the game - Ongoing engagement by Cogent is ensured through embedded incentives to maximise
site “up-time” and efficiency metrics.
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22. BOOM ESA vs. Client Owner/Operator
• Cogent / Origin scale - Cogent leverage our scale and existing supplier relationships to achieve greater
operational efficiency, resulting in lower costs to our clients.
• Focus on your Core Business - Energy generation is Cogent’s core business. Engaging Cogent will enable our
clients to focus on their core business with confidence.
• Reduced risk
– Cogent is responsible for the cost and execution of all scheduled and non-scheduled (breakdown) maintenance,
reducing the ongoing cost and administrative burdens that our clients would otherwise face.
– Cogent / Origin are positioned to efficiently manage commodity price risks with our in-house commodity trading
systems as well as providing link to Consumer Price Index (CPI).
• Additional Flexibility – Cogent / Origin are capable of establishing connections that can allocate cogeneration
emissions across a number of sites / LV feeders. This is typically not achievable by individual owners under current
market arrangements.
• Recognised leaders - Cogent are the market leaders and experts in this field. Minimise your requirement for
external consultants.
• Continuous Monitoring - Cogent have a proprietary, state of the art, remote backoffice system for monitoring and
maintaining their equipment.
• Peace of mind – bills issued monthly based only on the qty of energy consumed, no hidden costs.
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23. Thank you
Questions?