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Downtown Honolulu Ice Storage-District Cooling Project Jack Kattner, CEO – FVB Energy, Inc. Mr. Kattner presented a detailed review of the issues associated with DC development in general and a Honolulu DC development in particular. • Any potential DC market is continually evolving (new buildings, CFC chiller replacements, etc.). • There are unique individual customer situations. • DC opportunities include: old chillers, CFC chillers, additional regulations, capital needed for core business. • Possible solutions: stockpile CFCs, rebuild/replace chillers, or outsource to DC. • DC eliminates: capital drain, O&M concerns, environmental risk, focus on non- core business. • DC provides availability of cooling service 24 hrs/day, 365 days/yr. • DC is environmentally sound: energy, emissions, CFCs, noise, vibration, cooling tower plumes, CO2/global warming, etc. • DC-served buildings are easy to own, to operate, and to sell. • DC creates predictability in capital budgeting. • DC provides extremely high reliability. (Rydaker noted that DESP’s DH system has experienced only 20 minutes of downtime in 20 years, i.e. 99.9998% reliability, much superior to the typical reliability of local electric utilities.) • In N. America, there are now over 40 urban DC utility systems and ~2,000 institutional DC systems (universities, hospitals, airports, military facilities, etc.), plus other DC systems in Europe and Asia. • The growth rate of DC systems is over 15%/yr. Activity has been especially high since 1990. • DC is a catalyst for economic development in urban locales and central business districts. • DC developments can be led by: electric or gas utilities, municipalities, independent private developers, customer co-operatives, or hybrids. Hawaii SWAC DC probably will require a strong public signal to investors; therefore, a PPP may be an appropriate approach. • Typically necessary elements for success (from experiences with over 40 DC utility developments): o Educate and energize community leadership (public and private) – A must! o Meet customer needs through the DC service – More than just air- conditioning; capital avoidance, reliability, no surprises, ease to own & operate, 24/7 operation, cooling for special events and after-hours, data center cooling, etc., and risk management. o Allow 14 to 18 months from commitment to begin operations – Need to develop “anchor” customers or a “critical mass”. The process includes: a “business appreciation” study, technical and financial feasibility analyses, service agreement (contract) terms, customer discussions (repeated again and again and again), and an investor/developer who can hold a steady course throughout. 12PDF Image | Innovative Energy Systems Workshop
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