EnergyBiz - November/December 2007 - (Page 88)

» FInAL tAke Nightmare in manhattan Struggling to gEnErAtE by dAVid birnbAuM Editor’s notE The new york Times recently reported on the regulatory difficulties that David Birnbaum encountered trying to fire up a $1 million, 65-kilowatt rooftop microturbine installed last February. We contacted Birbaum to get the inside story, which follows. The Times reported that thousands of such units are installed around the United States, but Birnbaum’s would be one of the first in New York City. (GUEST OPINION) mentalist. Now, I call myself an angry, frustrated, and sad environmentalist. Three years ago, my company, Public Interest Network Services, realized the time had come to redo the communications room of our New York City facility. The minor glitch in the power grid that knocked out power in the Northeast in August 2003 was the final catalyst that launched PINS on this project, as we started to think more about the unthinkable – multi-day power failures in the biggest city in the United States. Unfortunately, when the first round of cost estimates came in for the traditional backup generators and additional cooling systems, I just about fell out of my ninth-floor window. A small company like PINS would need to get creative about rebuilding our facilities – otherwise, we would have to undergo a difficult and risky relocation into a larger office, perhaps leaving New York entirely. After I returned to the drawing board, my research led to the concept of cogeneration – which is perfect for power- and cooling-hundavid birnbaum gry operations like telecommunicaPHoto By JEff gaddis tions facilities. Newer technologies – specifically, a natural-gas-powered microturbine, combined with an absorption chiller to use otherwise wasted thermal energy – would not only provide PINS with clean power, chilled water, and long-run backup, but even offer a smidgen of financial payback over the decade we planned on running it. This seemed to be morphing into an excellent opportunity for our small company to make an environmentally sound choice that also made good business sense. Many of our customers are progressive non-profit organizations concerned about reducing their environmental footprint, or are environmental advocacy groups themselves, so this was a chance for us to show them and potential clients that a nimble, boutique telecommunications company like PINS could survive and prosper with a green strategy. It seemed almost too good to be true, although we knew that it would be a challenging and expensive effort involving completely redoing our power and cooling infrastructure without any downtime, which is not something to be undertaken lightly. I spent a full year planning our deployment with the engineers and contractors we selected for the project, I used to Call myself aN eNVIroN- educating myself on the ins and outs of the design we selected, and preparing for the work while minimizing the risk. This installation would be the first of its kind in New York City, so we wanted to make sure everything would be perfect. Fortunately, our concern for the technical risk turned out to be unnecessary. We ran into the usual hurdles in any major construction project, and dealt with them successfully. On the day of the big lift in December 2006, when the turbine and chiller were finally delivered to the roof of our building on 17th Street in Manhattan, we broke out the champagne, assuming that soon david birnbaum’s rooftop microturbine. we would be ready for the worst PHoto By JEff gaddis the summer could offer. What we did not take into account was the morass of the New York City bureaucracy, starting with the attempt to obtain our natural gas permit based on the plans filed in 2006. As the first inspectors started scratching their heads and issuing citations we grew worried about our exposure to a risk of delay we had no control over. This was especially confusing, given that Mayor Bloomberg and the City Council had issued a number of press releases in early 2007, trumpeting their push to encourage businesses to invest in clean technology and reduce their energy needs. The reality on the ground has not kept up with the rhetoric. The city’s regulations and procedures are behind the times, leaving inspectors and agencies uninformed and confused about new, green technologies. Oddly enough, had we elected to install a traditional reciprocating natural gas generator on our roof, or a few thousand gallons of diesel fuel in the basement, nobody would have blinked. It was our desire to innovate with newer, cleaner, and more efficient technology that has led to the delays. I am still hopeful that PINS will be able to start up the system before the year is out. After an article in the New York Times focused on our troubles, we’ve had some cooperation from the city. The costs have been a lot higher than I expected, though: tens of thousands of extra dollars in cooling power for the summer; outages related to power brownouts; and most troubling, our customers’ disappointment. In spite of being an angry, frustrated, and sad environmentalist, I remain optimistic. And I suspect that 15 minutes after we flip the switch, the feelings of anger and frustration will quickly fade away, and I will be able to focus my energies instead on serving my customers. David Birnbaum is president of Public Interest Network Services. 88 E n E rgyB i z November/December 2007

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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