11

Clean Energy Supplement Clean Energy Supplement Opportunity for ColoradoOpportunity for Colorado

John GregoryJohn Gregory

March 31, 2011March 31, 2011

22

AgendaAgenda

�� Future Energy InvestmentFuture Energy Investment

�� Clean EnergyClean Energy

�� OpportunityOpportunity

�� Job CreationJob Creation

�� SummarySummary

33

Future Energy InvestmentFuture Energy Investment

�� Electric power is a growth industryElectric power is a growth industry–– Some Key Drivers:Some Key Drivers:

�� Increase in populationIncrease in population

�� BusinessBusiness

�� Automated ManufacturingAutomated Manufacturing

�� InternetInternet

44

Future Energy InvestmentFuture Energy Investment

�� Energy capacity impacts cost.Energy capacity impacts cost.–– BusinessBusiness

–– Manufacturing Manufacturing ⇒⇒ ProductsProducts

–– Attracting companies to an areaAttracting companies to an area

55

Clean EnergyClean Energy

�� Renewable Energy SourcesRenewable Energy Sources–– Wind Farms*Wind Farms*

�� PPM Energy / SWE PPM Energy / SWE -- Lamar Lamar = 160 MW= 160 MW

�� BP BP -- Cedar Creek I Cedar Creek I = 300 MW= 300 MW

�� BP BP –– Cedar Creek II (Proposed)Cedar Creek II (Proposed)= 300 MW= 300 MW

�� Duke Energy Duke Energy –– Kit Carson Kit Carson = 51 MW= 51 MW

�� RES RES –– Cedar Point (Const.)Cedar Point (Const.) = 252 MW= 252 MW

�� Power is a function of wind conditions.Power is a function of wind conditions.

* Nameplate Capacity

66

Clean EnergyClean Energy

�� Renewable Energy SourcesRenewable Energy Sources–– Solar FarmsSolar Farms

�� CSU CSU –– USAFA = 3 MWUSAFA = 3 MW

�� Power is a function of time of day and cloud Power is a function of time of day and cloud cover.cover.

�� Power PlantsPower Plants–– Martin Drake Martin Drake = 254 MW= 254 MW

–– Ray NixonRay Nixon = 151 MW= 151 MW

77

Clean EnergyClean Energy

�� Electric GridElectric Grid–– Industry strives toward 100% utilization of Industry strives toward 100% utilization of

equipment.equipment.

–– Power companies balance power Power companies balance power production with power consumption, also production with power consumption, also know as load balance.know as load balance.

–– Smart Grid Smart Grid –– Auto balance national grid Auto balance national grid system.system.

88

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

99

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

Wind Farm(Power Source)

StandbyPower

Wind FarmNot Generating

Power

1111

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

Wind Farm(Power Source)

Storage(Load)

Wind FarmGenerating

Power

1212

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

Wind Farm(Power Source)

Storage(Source)

StandbyPower

Wind FarmNot Generating

Power

1313

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

Wind Farm(Power Source)

Storage(Load)

StandbyPower

RegenerateStorageCapacity

Wind FarmNot Generating

Power

1414

Clean Energy (Power Grid)Clean Energy (Power Grid)

Power Plant(Power Source)

Consumer(Load)

Power Grid

Wind Farm(Power Source)

Storage(Source)

Wind FarmNot Generating

Power

StandbyPower

CompensateAdditional

Load

Consumer(Load)

1515

Clean EnergyClean Energy

�� Energy StorageEnergy Storage–– Compensates for energy demandCompensates for energy demand

–– Revenue stream derived from peak and Revenue stream derived from peak and off peak energy costs difference.off peak energy costs difference.

–– Energy Bank for Renewable Sources Energy Bank for Renewable Sources

1616

Clean EnergyClean Energy

�� Energy Storage TechnologiesEnergy Storage Technologies–– Battery Storage Battery Storage

�� Cycling lifetime and scale energy capacityCycling lifetime and scale energy capacity�� Full Cycle Efficiency > 95%Full Cycle Efficiency > 95%�� Immediate power delivery responseImmediate power delivery response

–– Rotating MassRotating Mass�� Scale energy capacityScale energy capacity�� Full Cycle Efficiency Full Cycle Efficiency ≈≈ 90%90%�� Immediate power delivery response Immediate power delivery response

1717

Clean EnergyClean Energy

�� Energy Storage TechnologiesEnergy Storage Technologies–– Compressed Air Energy Storage (CAES)Compressed Air Energy Storage (CAES)

�� Requires large caverns for energy capacityRequires large caverns for energy capacity

�� Full Cycle Efficiency Full Cycle Efficiency ≈≈ 70%70%�� Slow power delivery response (10 minute)Slow power delivery response (10 minute)

–– Pumped Storage (Hydro)Pumped Storage (Hydro)�� Requires upper and lower reservoirsRequires upper and lower reservoirs

�� Full Cycle Efficiency = 80%Full Cycle Efficiency = 80%

�� Fast power delivery response < 20 sec.Fast power delivery response < 20 sec.

�� Over 100 years in existence.Over 100 years in existence.

1818

Clean EnergyClean Energy

�� New Pumped Storage technology allows it to work New Pumped Storage technology allows it to work as a grid stabilizer.as a grid stabilizer.

Figure 2: Typical situation in a modern pumped storage plant delivering balancing power, changesin load and operation mode during four hours of operation.

“Pump Storage works with Wind”, Mirjam Sick and Alex ander Swab, International Water Power and Dam Const ruction, October 21, 2005

Total of 31 Load Changes

1919

Clean EnergyClean Energy

�� Pumped Storage PowerPumped Storage Power–– Power = Pressure x FlowPower = Pressure x Flow

–– Pressure is a function elevationPressure is a function elevation

–– Machine cost is a function of flowMachine cost is a function of flow

–– Colorado Rockies provide good pressure Colorado Rockies provide good pressure source.source.�� Twin Lakes (400’) & Cabin Creek (1250’)Twin Lakes (400’) & Cabin Creek (1250’)

–– Utah has 2 permits in progress for PS.Utah has 2 permits in progress for PS.

2020

Clean EnergyClean Energy

�� Pumped Storage RequirementsPumped Storage Requirements–– Upper and lower reservoirsUpper and lower reservoirs

–– Water source (Compensate for Water source (Compensate for Evaporation & Seepage)Evaporation & Seepage)

–– Head and Tail Race, or RunnersHead and Tail Race, or Runners

–– Generator and PumpGenerator and Pump

–– Grid ConnectionGrid Connection

–– Permit and LicensePermit and License

2121

Clean EnergyClean Energy

�� Environmental ImpactEnvironmental Impact–– Fish MortalityFish Mortality

�� Fish ScreensFish Screens–– Water cleanlinessWater cleanliness

�� Improved seal technologyImproved seal technology

–– Water diversionWater diversion�� Reservoir ReplenishmentReservoir Replenishment

–– Earth moving Earth moving �� Reservoir ConstructionReservoir Construction

–– Mining TunnelsMining Tunnels�� Head and Tail Races (or Runners)Head and Tail Races (or Runners)

2222

Clean Energy (KOPS II)Clean Energy (KOPS II)

Hydropower Plant Kops II BrochureVorarlberger Illwerke Ag

“Large Hydro References”, Andritz Hydro

2323

Clean Energy (KOPS II)Clean Energy (KOPS II)

Upper Reservoir

Hydropower Plant Kops II Brochure, Vorarlberger Illw erke Ag

2424

Clean Energy (KOPS II)Clean Energy (KOPS II)

“Water is Energy, Hydropower at EnBW”, EnBW Energie B rochure.

Upper Reservoir

2525

Clean Energy (KOPS II)Clean Energy (KOPS II)

Hydropower Plant Kops II Brochure, Vorarlberger Illw erke Ag

2626

Clean EnergyClean Energy

Hydropower Plant Kops II Brochure, Vorarlberger Illw erke Ag

2727

Clean Energy (KOPS II)Clean Energy (KOPS II)

Hydropower Plant Kops II Brochure, Vorarlberger Illw erke Ag

2828

Clean Energy (KOPS II)Clean Energy (KOPS II)

“Large Hydro Ensuring Grid Stability with Rapidly E xpanding Wind Generation – A Supplier’s Perspective” , Peter Amler, Energy 2010, Aberdeen, May 2010.

2929

Clean EnergyClean Energy

18’ Robbins Tunnel Boring Machine (TBM) and KOPS II

“Robbins Double Shield TBM Powers through Rock Usin g 19-inch Disc Cutters”, http://www.robbinstbm.com/ case-study/kops-ii/

3030

Clean Energy (KOPS II)Clean Energy (KOPS II)

Hydropower Plant Kops II Brochure, Vorarlberger Illw erke Ag

3131

Clean Energy (Clean Energy ( FeldseeFeldsee ))

“Large Hydro References”, Andritz Hydro

3232

Clean EnergyClean Energy

“Large Hydro Ensuring Grid Stability with Rapidly E xpanding Wind Generation – A Supplier’s Perspective” , Peter Amler, Energy 2010, Aberdeen, May 2010.

3333

Clean EnergyClean Energy

“Large Hydro Ensuring Grid Stability with Rapidly E xpanding Wind Generation – A Supplier’s Perspective” , Peter Amler, Energy 2010, Aberdeen, May 2010.

3434

OpportunityOpportunity

�� Possible Pumped Storage LocationsPossible Pumped Storage Locations–– Colorado Springs Colorado Springs -- Rampart Reservoir Rampart Reservoir

–– Pikes Peak Pikes Peak –– Bighorn Reservoir & Lake Bighorn Reservoir & Lake MoraineMoraine

–– Fort Collins Fort Collins -- Horse Tooth ReservoirHorse Tooth Reservoir

–– Penrose Penrose -- Brush Hollow (South Slope Brush Hollow (South Slope Development with Development with TransCanadaTransCanada)*)*

–– Potentially many other sites in the State.Potentially many other sites in the State.

* Colorado House Bill 11-1083

3535

Opportunity (USAFA)Opportunity (USAFA)

Potential DamSite

Water TreatmentPlant

3636

Opportunity (USAFA)Opportunity (USAFA)

Potential DamSite

3737

Opportunity (USAFA)Opportunity (USAFA)

RampartReservoir

Tesla HydroGenerator(20 MW)

3838

Opportunity (USAFA)Opportunity (USAFA)

Potential Dam Site

3939

Opportunity (USAFA)Opportunity (USAFA)

�� Rampart ReservoirRampart Reservoir–– Upper reservoir in place with water supplyUpper reservoir in place with water supply

–– Build lower reservoir on USAFABuild lower reservoir on USAFA

–– Close proximity to the power grid.Close proximity to the power grid.

4040

Opportunity (Pikes Peak)Opportunity (Pikes Peak)

WilsonReservoir

BighornReservoir

4141

Opportunity (Pikes Peak)Opportunity (Pikes Peak)

12077’

11693’

11289’

10216’

4242

Opportunity (Pike Peak)Opportunity (Pike Peak)

�� Pike Region ReservoirsPike Region Reservoirs–– Upper and Lower reservoir in place with Upper and Lower reservoir in place with

water supplywater supply

–– Distant Grid connection (Manitou Springs)Distant Grid connection (Manitou Springs)

4343

OpportunityOpportunity

�� Commonalities between Rampart and Commonalities between Rampart and Pikes PeakPikes Peak–– Municipality and Front RangeMunicipality and Front Range

–– Support Wind and Solar FarmsSupport Wind and Solar Farms

–– Existing infrastructure enhances permit Existing infrastructure enhances permit and license process.and license process.

4444

OpportunityOpportunity

�� FinancingFinancing–– Low interest rate loans available for hydro Low interest rate loans available for hydro

projects and preference for municipalities.projects and preference for municipalities.–– Clean energy credit from Federal and Clean energy credit from Federal and

State Government.State Government.–– Bureau of Reclamation to secure Bureau of Reclamation to secure

Rampart Reservoir.Rampart Reservoir.–– Share cost burden among Federal, State, Share cost burden among Federal, State,

and Colorado Springs Utilities.and Colorado Springs Utilities.

4545

OpportunityOpportunity

�� Military Installation DirectiveMilitary Installation Directive–– “The USAFA currently receives all electrical energy used from “The USAFA currently receives all electrical energy used from

offoff--base electric generation sites. The federal Energy Policy Act base electric generation sites. The federal Energy Policy Act of 2005 (EPA Act 2005), federal Executive Order 13423 (EO of 2005 (EPA Act 2005), federal Executive Order 13423 (EO 13423), and the13423), and the federal Energy Independence and Security Act federal Energy Independence and Security Act 2007 (EISA 07) require military installations to use increasing 2007 (EISA 07) require military installations to use increasing amounts of renewable electrical energy and also require that theamounts of renewable electrical energy and also require that thesource of that renewable energy be located on the military source of that renewable energy be located on the military installationinstallation. In order to meet these legislative directives and . In order to meet these legislative directives and policies, the USAFA desires to partner with CSU in developing a policies, the USAFA desires to partner with CSU in developing a best business case for the generation and purchase of onbest business case for the generation and purchase of on--base base renewable electrical energy. Through the federal American renewable electrical energy. Through the federal American Recovery and Reinvestment Act (ARRA) of 2009, the USAFA Recovery and Reinvestment Act (ARRA) of 2009, the USAFA has available $18.3 million in funding to contract for solar elehas available $18.3 million in funding to contract for solar electric ctric service through a solar electric generating facility constructedservice through a solar electric generating facility constructed by by CSU (or its designee) on USAFA land.”CSU (or its designee) on USAFA land.”

Build 3MW Solar Farm, Defense Industry Daily, Augus t 5, 2009

4646

OpportunityOpportunity

http://www.recovery.gov/Pages/default.aspx

4747

OpportunityOpportunity

�� Return On InvestmentReturn On Investment

$1.04 B$1.04 B

$34.6 M$34.6 M

$96,000$96,000

$0.04 / KW$0.04 / KW--hrhr $0.04 / KW$0.04 / KW--hrhr$0.02 / KW$0.02 / KW--hrhr$ 0.02 / KW$ 0.02 / KW--hrhrSupply ChargeSupply Charge

$48,000$48,000$24,000$24,000$48,000$48,000Revenue per DayRevenue per Day

$518.4 M$518.4 M$259.6 M$259.6 M$518.4 M$518.4 M30 Year Total30 Year Total

$172.8 M$172.8 M$8.65 M$8.65 M$17.3 M$17.3 MRevenue per YearRevenue per Year

200 MW for 6 hours200 MW for 6 hours400 MW for 6 hours400 MW for 6 hoursEnergyEnergy

4848

OpportunityOpportunity

�� Program(sProgram(s) requires involvement from:) requires involvement from:–– Local GovernmentLocal Government–– Environmental GroupsEnvironmental Groups–– National Environmental Protection Agency (NEPA)National Environmental Protection Agency (NEPA)–– Colorado Springs UtilitiesColorado Springs Utilities–– USAFA and Pike National ForestUSAFA and Pike National Forest–– Governor, Governor’s Energy Office and State Governor, Governor’s Energy Office and State

GovernmentGovernment–– US Congressional State RepresentativesUS Congressional State Representatives–– Federal Energy Regulatory CommissionFederal Energy Regulatory Commission–– Bureau of ReclamationBureau of Reclamation

4949

OpportunityOpportunity

�� Start Early!Start Early!�� Know your project better than anyone else.Know your project better than anyone else.�� Address staffing needs for the effortAddress staffing needs for the effort�� Consult with FERC early and oftenConsult with FERC early and often�� Clearly articulate issues and identify data Clearly articulate issues and identify data

gapsgaps�� Gather existing information from everyone.Gather existing information from everyone.�� File a complete applicationFile a complete application�� Seek local solutions.Seek local solutions.

“Licensing and Compliance 101”, Northwest Hydroelec tric Association Conference Workshop, 2011.

5050

Job CreationJob Creation

�� JobsJobs–– Temporary JobsTemporary Jobs

�� Environmental Impact Study (??)Environmental Impact Study (??)�� Engineering (50)Engineering (50)�� Construction (500)Construction (500)�� Community Jobs (2500)Community Jobs (2500)

–– Permanent Facility JobsPermanent Facility Jobs�� 0.67 person / 1 MW0.67 person / 1 MW

�� New jobs provide sales and property tax New jobs provide sales and property tax source.source.

5151

SummarySummary

�� Energy storage partners with renewable Energy storage partners with renewable energy sources and Smart Grid.energy sources and Smart Grid.

�� Energy storage can attract wind and solar Energy storage can attract wind and solar energy companies to the area.energy companies to the area.

�� Renewable energy companies would create Renewable energy companies would create jobs for the state.jobs for the state.

�� Each energy job will create tangible jobs for Each energy job will create tangible jobs for communities.communities.

�� Energy capacity, cost, and reliability are Energy capacity, cost, and reliability are factors with companies.factors with companies.

5252

SummarySummary

�� Pumped StoragePumped Storage–– Most effective energy storage method.Most effective energy storage method.

–– Environmentally friendly.Environmentally friendly.

–– Technology improvements provide grid Technology improvements provide grid stability and water safety.stability and water safety.

�� Colorado Springs is Colorado Springs is “Water Ready”“Water Ready” to to provide economical energy storage for provide economical energy storage for the state and Smart Grid.the state and Smart Grid.

5353

Thank you