An Introduction to An Introduction to RenewablesRenewables

2

Presentation OutlinePresentation Outline

•

Renewable Energy Drivers•

Resource/Policy Map Overview

•

Renewable Energy Technologies–

Solar (PV, Domestic Hot Water, Concentrating)

–

Biomass–

Wind

•

OUC’s Approach

3

Drivers for Renewable Energy Drivers for Renewable Energy InvestmentInvestmentThe Three E’s

–

Economic Stability•

Reduced price volatility•

Opportunities for export in global market•

Green job creation–

Environmental Sustainability•

Carbon reduction needs•

Impacts of fossil combustion on human health•

NIMBY issues of nuclear–

Energy Security•

Large % of fossil fuel supply located outside of Florida•

Fossil fuel supply disruptions•

Political risks•

Fuel diversity provides a hedge against risk

Renewable Energy Resource and Renewable Energy Resource and Policy MapsPolicy Maps

5

U.S. Biomass Resource

6

U.S. Wind Resource (50m)

7

U.S. Concentrating Solar Resource

8

U.S. Photovoltaic Solar ResourceU.S. Photovoltaic Solar Resource

9

All Resources

10

Renewable Portfolio Standards

State renewable portfolio standard

State renewable portfolio goal

www.dsireusa.org / May 2009

Solar water heating eligible *† Extra credit for solar or customer-sited renewables

Includes separate tier of non-renewable alternative resources

WA: 15% by 2020*

OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)

CA: 20% by 2010

☼ NV: 20% by 2015*

☼ AZ: 15% by 2025

☼ NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)

HI: 20% by 2020

☼ Minimum solar or customer-sited requirement

TX: 5,880 MW by 2015

UT: 20% by 2025*

☼ CO: 20% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*

MT: 15% by 2015

ND: 10% by 2015

SD: 10% by 2015

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

☼ MO: 15% by 2021

IL: 25% by 2025

WI: Varies by utility; 10% by 2015 goal

MI: 10% + 1,100 MW by 2015*

☼ OH: 25% by 2025†

ME: 30% by 2000New RE: 10% by 2017

☼ NH: 23.8% by 2025

☼ MA: 15% by 2020 + 1% annual increase (Class I Renewables)

RI: 16% by 2020

CT: 23% by 2020

☼ NY: 24% by 2013

☼ NJ: 22.5% by 2021

☼ PA: 18% by 2020†

☼ MD: 20% by 2022

☼ DE: 20% by 2019*

☼ DC: 20% by 2020

VA: 15% by 2025*

☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales by 2012;

(2) 20% RE & CHP by 2017

28 states & DC have an RPS

5 states have goals

11

Public Benefits Funds for RenewablesPublic Benefits Funds for Renewables

State PBF supported by voluntary contributions

www.dsireusa.org / May 2009 (estimated funding)

* Fund does not have a specified expiration date

** The Oregon Energy Trust is scheduled to expire in 2025

RI: $2.2M in 2009$38M from 1997-2017*

MA: $25M in FY2009$524M from 1998-2017*

NJ: $78.3M in FY2009$647M from 2001-2012

DE: $3.4M in 2009$48M from 1999-2017*

CT: $28M in FY2009$444M from 2000-2017*

VT: $5.2M in FY2009$33M from 2004-2011

PA: $950,000 in 2009$63M from 1999-2010

IL: $3.3M in FY2009$97M from 1998-2015

NY: $15.7M in FY2009$114M from 1999-2011

WI: $7.9M in 2009$90M from 2001-2017*

MN: $19.5M in 2009$327M from 1999-2017*

MT: $750,000 in 2009$14M from 1999-2017*

OH: $3.2M in 2009$63M from 2001-2010

MI: $6.7M in FY2009$27M from 2001-2017*

ME: 2009 funding TBD$580,300 from 2002-2009

DC: $2M in FY2009$8.8M from 2004-2012

DC

OR: $13.8M in 2009 $191M from 2001-2017**

CA: $363.7M in 2009$4,566M from 1998-2016

State PBF

16 states + DC have public benefits

funds ($7.3 billion by 2017)

ME has a voluntary PBF

16 states + DC have public benefits

funds ($7.3 billion by 2017)

ME has a voluntary PBF

12

Property Tax Incentives for Property Tax Incentives for RenewablesRenewables

State exemption or special assessment + local government option

www.dsireusa.org / February 2010

Puerto Rico

Local governments authorized to offer exemption (no state exemption or assessment)

State exemption or special assessment only

32 States + PR

offer property tax incentives for renewables

32 States + PR

offer property tax incentives for renewables

DC

13

Renewable Energy Technology Renewable Energy Technology OptionsOptionsTechnology Availability Cost

per KWH

Current Viability in

FloridaLandfill Gas Recovery Baseload $0.04 High

Solar Hot Water Peak/Shoulder $0.10 High

Waste to Energy Baseload $0.11 High

Direct Fired Biomass Baseload $0.14 High to Medium

Co-Fired Biomass Baseload $0.09 High to Medium

Solar Photovoltaics (Rooftop) Peak/Shoulder $0.25 Medium

Biomass Gasification Baseload $0.12 Medium

Solar Photovoltaics (Commercial Scale)

Peak/Shoulder $0.20 Medium

Solar Thermal Electric Peak/Shoulder $0.18 Medium to Low

Wind (Offshore) Varies $0.22 Low

Wind (Inland) Varies $0.28 Low

14

Current Renewable Energy Current Renewable Energy Resources in FloridaResources in Florida

•

Solar hot water•

Solar photovoltaics

•

Solar thermal electric•

Landfill gas

•

MSW•

Dry Biomass

•

Wet Biomass

Renewable Energy TechnologiesRenewable Energy Technologies

SolarSolar

17

Photovoltaics (PV)Photovoltaics (PV)•

Benefits:–

No fuel costs–

Carbon free–

Can be distributed near the user–

High cost reduction potential–

Creates local jobs

•

Challenges:–

Not dispatchable–

Intermittent resource–

PV is still expensive compared with conventional fuels

–

Minimal impact to winter peak

18

Photovoltaics Versus Solar Hot Photovoltaics Versus Solar Hot WaterWater

•

PV uses photochemical reactions to create an electric current

•

Primary component is silicon or other semiconductor

•

Cost per KWH is around $0.21•

Average system cost is around $8,000/KW

•

Can power electric loads•

Can work in any climate•

Must use batteries to store electricity for evening use

•

Solar Thermal relies on thermodynamic heat transfer to warm fluids

•

Primary components are glass and copper tubing

•

Cost per KWH is around $0.10•

Average system cost is around $4,000

•

Can’t directly power electric loads

•

Works best in warmer climates•

Stores hot water in thermally insulated tank for evening use

Two Different Solar Technologies

19

How Does PV Generate Electricity?How Does PV Generate Electricity?

Individual PV Cell

The built-in electric field pushes the electron across

and it is collected by the grid on the surface

Photons pass through surface and are

absorbed within the cell

The absorbed photon gives its

energy to an electron, which

breaks free

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PV Daily Energy Production: Rule of PV Daily Energy Production: Rule of ThumbThumb

•

1-kW PV array produces 5 kWh/day DC

•

1-kW grid-tied system produces 4 kWh/day AC

•

1-kW system produces approximately 1400 kWh annually

21

Single Crystal

Polycrystalline

Thin-Film

Module Types

22

Using PV in Our CommunityUsing PV in Our Community

23

Solar Domestic Hot WaterSolar Domestic Hot Water•

Benefits:–

No fuel costs–

Carbon free–

Can be distributed near the user–

Low cost–

Creates local jobs–

Can be used to pre-heat for industrial applications

–

Can easily heat water over 160°

F

•

Challenges:–

Intermittent resource–

Storage tank required–

Must have a hot water load

24

Passive Solar Hot WaterPassive Solar Hot Water

•

No moving parts•

Uses gravity and pressure to move water

•

Collector is storage tank•

Usually least cost option

25

Active Solar Hot Water Active Solar Hot Water

•

Active pump circulates water•

Can be PV powered•

Slimmer profile than passive system

•

Can be open or closed loop•

Can use water or glycol for heat transfer

•

Tend to be more expensive than passive system

26

Commercial Hot WaterCommercial Hot Water

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Residential Hot WaterResidential Hot Water

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Solar Concentrating SystemsSolar Concentrating Systems

•

Concentrate solar energy through use of mirrors or lenses.

•

Concentration factor (“number of suns”) may be greater than 10,000.

•

Systems may be small–

(e.g. solar cooker) •

Or really large–

Utility scale electricity generation –

Furnace temperatures up to 3800oC (6800oF)

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Primary Types of Solar Thermal Primary Types of Solar Thermal ElectricElectric

•

Parabolic Trough•

Compact Linear Fresnel Reflector

•

Solar Furnace•

Parabolic Dish & Engine•

Solar Central Receiver (Solar Power Tower)

•

Lens Concentrators•

Concentrating PV

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CENTRAL RECEIVER

SOLAR FURNACE

PARABOLIC DISH

PARABOLIC TROUGH

FRESNEL REFLECTOR

LENS CONCENTRATORS

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Parabolic Troughs Parabolic Troughs -- OperationOperation

•

Most proven solar thermal technology

•

Parabolic mirror reflects solar energy onto a receiver

•

Heat transfer fluid such as oil or water is circulated through pipe loop. (250°F to 550°F)

•

Collectors track sun from east to west during day.

•

Thermal energy transferred from pipe loop to process.

•

Basis for FPL and Harmony Projects

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Thermal StorageThermal Storage•

Uses high heat capacity fluids as heat transfer storage mediums (ex. Molten salts)

•

12 to 17 hours of storage will allow plants to have up to 60% to 70% capacity factors.

Biomass Energy ResourcesBiomass Energy Resources

34

Range of Biomass Energy Range of Biomass Energy OptionsOptions

•Trees•Grasses•Agricultural Crops•Residues•Animal Wastes•Municipal Solid Waste•Algae•Food Oils

•Enzymatic Fermentation•Gas/liquid Fermentation•Acid Hydrolysis Fermentation•Gasification•Combustion•Co‐firing•Transesterification

Biomass Biomass FeedstockFeedstock

Conversion Conversion ProcessesProcesses

ProductsProducts•

Fuels•

Ethanol

•

Biodiesel

•

Power •

Electricity

•

Heat

•

Chemicals•

Plastics

•

Solvents

•

Chemical Intermediates

•

Adhesives

•

Fatty Acids

•

Acetic Acid

•

Paints

•

Dyes, Pigments, and Ink

•

Detergents

•

Food and Feed

35

Biomass Energy Biomass Energy ““Value ChainValue Chain””

•

Production•

Harvesting, collection

•

Handling•

Transport

•

Storage•

Pre-treatment (e.g., milling)

•

Feeding•

Conversion

36

Benefits of Biomass CombustionBenefits of Biomass Combustion•

Can be a least cost option

•

Can be co-fired to allow for fuel switching

•

Can be used 24 hours/day•

Carbon neutral or negative fuel (depending on feedstock)

•

Feedstock can be burned as solid or gas using conventional technologies

37

Challenges of Biomass CombustionChallenges of Biomass Combustion

•

Lower BTU content than coal•

Lower density/higher moisture content

•

Competing uses•

Short-term vendor contracts•

Handling challenges•

Supply costs can vary greatly depending on feedstock source Specialized handling and firing equipment

•

Modifications to air quality control systems

•

Multiple suppliers to deal with•

Fugitive dust and odor issues•

Fuel flexibility and fluctuating supplies

38

Waste to EnergyWaste to Energy

•

Solves two problems at once by reducing waste stream and creating electricity

•

Common Methods of Conversion–

Direct Combustion–

Gasification–

Anaerobic Digestion•

Requires pre-processing•

Feedstock handling can be challenging

•

Heterogeneous feedstock mean inconsistent fuel quality

39

Landfill Gas CaptureLandfill Gas Capture•

Benefits:–

Can be co-fired –

Can be used 24 hours/day–

Extremely low cost–

Carbon reduction benefits

•

Challenges:–

Slightly lower BTU value than natural gas

–

May need to be cleaned–

Location specific

Wind PowerWind Power

41

Wind PowerWind Power

•

Benefits:–

No fuel costs–

Carbon free–

Can be low cost where resources are available

–

Can allow for multiple uses of land

•

Challenges:–

Not dispatchable–

Intermittent resource–

Very location specific–

Minimum wind speeds required for operation

42

Classes of Wind Power Density at Classes of Wind Power Density at Heights of 10 m and 50 mHeights of 10 m and 50 m

Wind Power Class*

10 m (33 ft) 50 m (164 ft)Wind Power

Density (W/m2) Speed m/s (mph)

Wind Power Density (W/m2) Speed m/s (mph)

1 100 4.4 (9.8) 200 5.6 (12.5)

2 150 5.1 (11.5) 300 6.4 (14.3)

3 200 5.6 (12.5) 400 7.0 (15.7)

4 250 6.0 (13.4) 500 7.5 (16.8)

5 300 6.4 (14.3) 600 8.0 (17.9)

6 400 7.0 (15.7) 800 8.8 (19.7)

7 1,000 9.4 (21.1) 2,000 11.9 (26.6)

43

Wind Turbine ComponentsWind Turbine Components

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OUCOUC’’s Approachs Approach

45

OUCOUC’’s Renewable Energy Business s Renewable Energy Business ObjectivesObjectives

•

Balance sustainability with affordability and reliability

•

Provide a hedging strategy against potential regulatory requirements through the acquisition of renewable energy credits (RECs) and Carbon Offsets

•

Leverage state and federal incentives offered to encourage the development of customer-sited assets

•

Offer an option to customer requests for environmentally-friendly energy investments

•

Pursue least-cost planning for future energy investments

•

7% Internal Renewable Goal

46

Key Integration ChallengesKey Integration Challenges

•

High Utility Reserve Margin–

OUC currently maintains 130% required energy capacity–

No need for power until 2020 due to slower growth rates and customer conservation

–

Heavy base load generation (coal)–

Low avoided energy rates (fuel only)•

Lack of Government Regulation–

No state or federal RPS–

No carbon legislation•

Higher Cost of Renewable Generation–

Biomass and solar currently cost more than primary generation sources making it more challenging to integrate without regulation

47

Biomass Energy ProjectsBiomass Energy Projects

•

Landfill Methane Recovery Projects–

Orange County Landfill displaces 3% of fuel required for either of Stanton’s coal units ~ expanding to 22 MW

–

St. Cloud Landfill 1 MW project being planned

–

Holopaw Landfill Project recently approved (~ 15 MW)

•

Harmony Hybrid Solar/Biomass Power Plant

–

5 MW Plant will be located in Harmony’s Florida Sustainable Energy Research Park

–

Uses biomass gasifiers and concentrating solar to generate electricity

–

Includes educational partnership with FSU

•

MSW Gasification with City of Orlando–

Net Metered System–

Turns trash to Syngas

in a closed loop system

–

No dioxins produced–

Will provide co-generation to City water treatment facility

–

1 to 2 MW in scale

48

OUCOUC’’s Existing Solar Projectss Existing Solar Projects•

Solar Production Incentive–

Provides incentives for producing energy from solar hot water and PV

–

$.03 to $.05/KWH Currently re-evaluating incentive levels

•

Solar Billed Solution–

Provides no/low interest loans through the Orlando Federal Credit Union (OFCU)

–

OUC buys down interest–

Preparing to re-bid•

Solar Electric Vehicle Charging Station at OUC–

2.8 KW–

Provides 80% solar fraction for charging•

Solar on Utility Poles –

Partnership with PetraSolar–

Uses micro-inverters–

10 systems installed•

Jetport/Stanton Solar PPA–

9.31 MW DC–

22% Capacity Factor–

In negotiations with vendor

49

New Solar Business ModelsNew Solar Business Models

•

Community Solar Farm–

500 KW to 1 MW depending on customer participation

–

OUC holds PPA with vendor and acts as billing agent

–

No upfront cost to participate–

Fixed monthly rate for 20+ years

–

Virtual net metering–

Allows for multi-family participants

–

Removes siting barriers–

OUC owns Environmental Attributes

•

Commercial Solar Aggregation Pilot–

OUC holds PPA with vendor and acts as billing agent

–

No upfront cost to participate–

Fixed monthly rate for 20+ years

–

Customer retains demand savings and any net metering

–

Sited on the customer’s rooftop–

Price reductions from project aggregation

–

OUC owns Environmental Attributes

50

New Biomass OpportunitiesNew Biomass Opportunities

•

Biomass Co-Firing–

Possibly up to 10% of boiler capacity (90 MW)

–

Ship biomass feedstock via rail cars from longer distances

–

Consider torrefaction to improve BTU content and moisture content

51

New Biomass OpportunitiesNew Biomass Opportunities

•

Algae Biomass Project–

Opportunities to use algae to treat wastewater

–

Fed CO2 from post-

scrubbed flue gas–

Algae is “cracked”

to obtain biofuels and biomass feedstock for co-firing.

52

0

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HR1HR2HR3HR4HR5HR6HR7HR8HR9HR10HR11HR12HR13HR14HR15HR16HR17HR18HR19HR20HR21HR22HR23HR24

STN A 06/22/2009STN #2 06/22/2009STN #1 06/22/2009MP #3 06/22/2009IR CTD 06/22/2009IR CTC 06/22/2009IR CTA 06/22/2009 Natural Gas

Coal and LandfillLandfill Gas

Summer Peak DaySummer Peak Day

53

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HR1HR2HR3HR4HR5HR6HR7HR8HR9HR10HR11HR12HR13HR14HR15HR16HR17HR18HR19HR20HR21HR22HR23HR24

PhotovoltaicsSTN A 06/22/2009STN #2 06/22/2009STN #1 06/22/2009MP #3 06/22/2009IR CTD 06/22/2009IR CTC 06/22/2009IR CTA 06/22/2009

PV Contribution

Biomass Co-Firing Opportunities

Biogas Opportunities

Summer Peak Day with RenewablesSummer Peak Day with Renewables

54

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HR1HR2HR3HR4HR5HR6HR7HR8HR9HR10HR11HR12HR13HR14HR15HR16HR17HR18HR19HR20HR21HR22HR23HR24

STN A 01/11/2010STN #2 01/11/2010STN #1 01/11/2010MP #3 01/11/2010IR CTB 01/11/2010IR CTA 01/11/2010

Winter Peak DayWinter Peak Day

55

Winter Peak Day with RenewablesWinter Peak Day with Renewables

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HR1HR2HR3HR4HR5HR6HR7HR8HR9HR10HR11HR12HR13HR14HR15HR16HR17HR18HR19HR20HR21HR22HR23HR24

PhotovoltaicsSTN A 01/11/2010STN #2 01/11/2010STN #1 01/11/2010MP #3 01/11/2010IR CTB 01/11/2010IR CTA 01/11/2010

PV Contribution

Biogas Opportunities

Biomass Co-Firing Opportunities