Transcript Document

Alternative Energy Technologies
Perspectives and Comparisons
by
Tom Konrad
Presented at:
The Keiretsu Forum Cleantech
Academy
October 23, 2007
Outline
• Introduction
• Electricity Generation
– Definitions & Metrics
– Examples
– Comparisons
• Energy Efficiency
Goals
• Know which questions to ask:
– Is the presenter using valid metrics?
– What is the potential market?
– What are competing technologies?
CleanTech Investing 101
• Today
– Electric Technologies
• In depth: Solar, Geothermal
• Future Workshops
– Electric with other focus topics
• Wind, Transmission, Energy storage, Smart Grid
– Transportation Technologies
– Others: Thermal technologies, Green building
Outline
• Introduction
• Electricity Generation
– Definitions & Metrics
– Examples
– Comparisons
• Energy Efficiency
Electricity Generation:
Power vs. Energy
• Power
– MW or kW
– Like horsepower for
your car
– Answers question: how
fast can I use it?
• Energy
– MWh or kWh
– Like gallons of gas for
your car
– Answers question: how
much did I use?
500 MW wind farm and a 500 MW coal plant have the same
power rating, but the coal plant will produce 3x as much energy
over the course of a year because it runs most of the time.
Timing of Generation
• Electricity is difficult to store, so electricity supply
has to be constantly balanced with demand
• Baseload is “always on”
– Valued for reliability
• Dispatchable can be turned on and off
– Worth the most to utility
• Intermittent
– Only valued for Energy, not Power – lowest paid
sources of generation.
Reliability
• Peak demand is the most amount of power that
users are expected to need at any one time
• Peak usually occurs on hot summer
afternoons/evenings
• Most utilities want enough Base Load +
Dispatchable capacity on the system to meet peak
with a margin
• Most are unwilling to count more than a small
fraction of Intermittent generation towards
meeting peak
Location
• Generation must be connected to a load or
the grid to be valuable
• Renewable resources are often located in
areas without transmission
• Small distributed generation can often take
advantage of “net metering” laws which
allows sale to the grid at retail prices
Outline
• Introduction
• Electricity Generation
– Definitions & Metrics
– Examples
– Comparisons
• Energy Efficiency
Base Load Technologies
Coal
Nuclear
Geothermal
Biomass &
Waste to
Energy
Strengths
Familiar,
cheap fuel
Cheap fuel
Weaknesses
Global warming, water use,
emissions
Very expensive to build,
proliferation, waste storage,
water use
Low impact,
inexpensive
Free/cheap
fuel
Location, limited but larger
resource
Has emissions, limited &
distributed fuel supplies
Dispatchable Technologies
Natural Gas
Generation
Demand
Response
Strengths
Low emissions,
Can locate
almost
anywhere
Inexpensive,
reduces
emissions
Weaknesses
Fuel cost/ volatility
Utility must think
“beyond the meter”
Intermittent Technologies
Wind
Strengths
Inexpensive
Solar
Photovoltaic
(PV)
Useful anywhere,
matches well with
peak
Concentrating Moderate price, can
Solar Power
be stored, near peak
Ocean & Tidal Near loads
Power
Weaknesses
Far from cities, usually
not timed near peak
Expensive
Only works well in
cloudless areas
Developing, still very
expensive
Shifting Supply
Using the power we have more effectively
Fully dispatchable storage technologies
Pumped
Hydropower
Inexpensive
Limited by location environmental
restrictions on water flows
Battery Storage
Locate anywhere Expensive, developing technology.
Thermal storage
Less expensive
Used only with Concentrating Solar
Power, few & small commercial
experience
Compressed Air
Energy Storage
Moderate Price
Locate only near underground
caverns/mines; requires natural gas
Shifting Demand
Using the power we have more effectively
Time based
pricing
Long distance
transmission
Pays for itself,
also reduces
total usage
Diversification
of supply and
demand
Utility must think beyond the
meter; often requires
infrastructure upgrades
Takes long time to build or
upgrade; politically tricky
Note on Electricity Prices
• On-Peak Power can be worth as much as 10x OffPeak power in wholesale markets
• Quoted ¢/kWh numbers include assumptions:
– Fuel prices
– Discount rate
• High discount rates favor technologies with high fuel costs
– Environmental & social costs are usually ignored- but
they do have value
• Colorado has passed a law that explicitly includes these costs
in the resource planning process for public utilities
Outline
• Introduction
• Electricity Generation
– Definitions & Metrics
– Examples
– Comparisons
• Energy Efficiency
Electricity Generation Comparisons
• Disclaimers:
– The following charts are based on my opinion
from extensive reading in the field, is highly
qualitative and represents a simplified picture
– Don’t expect scientific accuracy
– Bubble size approximates the size of the
potential resource
Availability vs. Price
Emissions vs. Price
Outline
• Introduction
• Electricity Generation
– Definitions & Metrics
– Examples
– Comparisons
• Energy Efficiency
Energy Efficiency
• Customers (except utilities) are not in the
market for kilowatts and kWh… they want
light, refrigeration, etc.
• Efficiency is finding ways to deliver what
the customer wants (the services electricity
provides) while using less electricity
Barriers to Energy Efficiency
• Energy Efficiency is so cheap because of barriers
to adoption
– Perverse incentives: Landlord buys equipment, tenant
pays bill
– High up-front costs / lack of capital
– Attitudes/Awareness – not a social norm
– Perceived riskiness – esp. on the part of utilities
– Often require system level improvements – not just
products.
Demand Side Management
Overcoming Perverse Incentives
• Refers to utility programs to promote
energy efficiency or demand response
• Growing quickly in popularity due to
government mandates
• Can be hard to measure results
• Requires shift to looking beyond the meter
Performance Contracting
Overcoming high up-front costs and riskiness barriers
• Customer
– Hires company to provide a fixed level of service
(temperature, light, etc)
– Pays the company an amount less than the current
utility bill
• Company
– Takes over utility bills
– Uses energy efficiency measures to save energy
– Keeps the savings.
Examples
• Products:
– Geothermal Heat
Pumps
– Compact Fluorescent
Lights (CFL)
– Light Emitting Diodes
(LED)
– Low-e Windows
– Insulation
• Design / Service:
– Daylighting
– Passive Solar Design
– Servicing heating and
cooling equipment
regularly
– Proper sealing of
buildings
– Cogeneration /
Combined Heat and
Power
Final Thoughts
• When and where electricity is delivered is
often more important than the price
• The electricity market is inefficient in many
ways
– Selling only on price seldom works well
• Small companies need a ready market for
their products… they seldom can survive if
they have to transform the market first