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TCAAP Energy Integration Resiliency Framework <br />Energy Source Implementation <br /> <br /> <br /> 34 <br />County, City, JDA, MNARNG, the school district, and other partners could work with the <br />selected developer to form an initial coalition of subscribers for the system. <br />3.2. Combined Heat and Power <br />3.2.1. Introduction <br />The vision for TCAAP is that the Thumb, Town Center, and Flex areas could be served by a CHP energy <br />system located at the TCAAP site or nearby. This localized energy source would enable achievement of <br />many of the guiding principles established by the ERAB. The MNARNG has a similar energy vision for <br />the AHATS site, and the partnership potential for a CHP system is very attractive. The Project Team <br />recommends that the JDA and County collaborate with the MNARNG and Xcel Energy to define a <br />preferred initial CHP strategy, considering the following: <br /> Collaboration between the JDA, the County, Xcel Energy, and the MNARNG could help identify <br />an operational strategy and location for the initial CHP that is beneficial for all parties. <br /> Incorporation of a CHP system that meets the energy needs of all three sites would improve <br />the economic competitiveness of CHP, due to the potential diversity of usage and load <br />profiles. <br /> Due to regulatory statutes, Xcel Energy has the exclusive authority to distribute and sell <br />electricity across multiple properties in Arden Hills. If Xcel Energy is the owner, the CHP <br />system could function as a microgrid system for the area, providing a local energy source for <br />reliable electric and thermal energy for TCAAP, RCPW, and the MNARNG in the event of a grid <br />disruption, meeting the goals of each of the sites. <br /> In the event that Xcel Energy is not the owner of the CHP, the proposed system may only <br />distribute thermal energy across property lines, unless the electricity is sold to the Midwest <br />Independent System Operators (MISO), in which case there would be an additional cost for <br />the use of Xcel’s infrastructure, which may prove to be cost prohibitive depending on the <br />production cost and market dynamics. <br />While construction of independent CHP systems on both the TCAAP and AHATS sites could potentially <br />be feasible, the economics of a connected system would be much more beneficial to both sites. <br />However, the current uncertainty regarding the timing and type of TCAAP development restricts the <br />opportunity to perform a complete evaluation of a CHP and district energy system for TCAAP at this <br />time. With the unknown development conditions of TCAAP in mind, the Project Team has evaluated a <br />scenario for CHP implementation in the Thumb and Town areas of TCAAP based on the assumed <br />energy loads and envisioning how a CHP system could be implemented in the Thumb.