Business Sensitive | 1 Horizon Energy Group [Solar PV]x[Microgrids] The Matrix Solution SunSpec...

Business Sensitive | 1Horizon Energy Group

[Solar PV]x[Microgrids]The Matrix Solution

SunSpec Alliance Members

Steve Pullins, PresidentFebruary 2013


Solar PV Ties to Microgrid• Multiple resources• Campus rooftops• Active controls to

support dispatch and load management

• Effective use of energy storage that can work in conjunction with PV

• Above average use of renewables


[Solar PV]x[Microgrids]

Low Capacity FactorLow O&M Cost

At or Near Peak LoadNo Min Capacity at Night

No EmissionsNo Fuel Transport Cost

Very High Capacity FactorCost Competitive: 2 - 40 MW

Resource PortfolioLarge Diurnal Power Difference

Emissions ReductionVery High Reliability

Important Questions:Will natural gas be a long-term baseload affordable fuel resource?Will biogas or biomass become a long-term baseload affordable fuel resource?Will the capital cost of installing solar PV continue to lower – lower LCODE?

The truth of LCODE (levelized cost of delivered energy)


Example: 1 Microgrid / 3 Sites / 7 Systems

…in San Diego


Natural Gas Challenge



Source: EIA AEO20122017



Source: EIA AEO2012


Projecting Volatility

Source: EIA AEO2012


Natural Gas Competition

Source: EIA AEO2012


Emissions Challenge

Source: EIA AEO2012


Renewables Challenge

Source: EIA AEO2012


Energy Storage Challenge

Source: EIA AEO2012


Case Study – Sports Venue

• 4.2 MW of PV• 1.6 MW of energy storage• 107% renewable energy served

for venue load (523 MWh excess)

• Consider 50 MWh excess production available for charging

• 228 kWh available for charging at 219 events annually for 3 hrs

• 76 EV’s charged on solar energy

The sports venue has a unique customer service that can set it apart.

Now consider the dispatchable 76 kW regulation service that could be used by the utility on this 10 MVA circuit at a peak time.


Load and Resource Profile


Levelized Cost of Energy (LCOE at Gen Output)

Source: EIA AEO2012

Capacity Factor?

2017 NG Fuel Cost runs ~$4.30/mmBTU.

None of these costs include the T&D costs to get the power to the consumer, which adds ~10%.


Levelized Cost of Energy (LCOE at Gen Output)

Source: EIA AEO2012

“The levelized cost calculations presented in the tables apply only to utility-scale use of those technologies.”


OK, Let’s Talk Capacity Factors

Source: Data from EIA Electric Power Annual 2011 (Jan2013)

2011 Fleet Average Capacity Factor = 43.2%


Levelized Cost of Delivered Energy (LCODE)Technology Cap.

FactorCorrected

Cap. FactorLCOE

($/kWh)Corrected

LCOE ($/kWh)LCODE

($/kWh)

Coal 85% 63.8% $0.097 - $0.139 $0.157 $0.173

NG-fired CC 87% 42.2% $0.063 - $0.090 $0.158 $0.174

NG-fired CT 30% 10.1% $0.102 - $0.128 $0.342 $0.376

Nuclear 90% 90.3% $0.114 $0.114 $0.125

Geothermal 91% 91% $0.098 $0.098 $0.108

Biomass 83% 83% $0.115 $0.115 $0.126

Wind 33% 33.9% $0.096 $0.096 $0.106

Central Solar PV 25% 25% $0.153 $0.153 $0.168

Distributed PV* 22% 22% $0.136 / $0.075**

Hydro 53% 39.8% $0.089 $0.119 $0.131

All in 2010 USD *One of our projects - 7% cost from Energy Storage **With Federal Investment Tax Credits


Conclusions

• The distributed solar PV resource will almost always find a place in microgrids because of the cost and partial coincidence with peak load.

• Need to push lower PV installation costs.• Need more high quality PV sources that prove 30+

year lifetimes.• While the 0.5% annual degradation could be lower, it

is financially workable now.• Converged distributed PV / Energy Storage provide

options that are well suited to microgrids.


Thank you!

Questions?

Contact info:Steve Pullinsspullins@horizonenrgygroup.com865.300.7395www.horizonenergygroup.com

mailto:[email protected]

http://www.horizonenergygroup.com/

Business Sensitive | 1 Horizon Energy Group [Solar PV]x[Microgrids] The Matrix Solution SunSpec...

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