John Lushetsky | The DOE Solar Program

Solar Energy Technologies Program

DOE Solar Energy Technologies ProgramAccelerating the U.S. Solar Industry

Solar Energy: A Solution to Energy and Environmental Problems?George Washington UniversityWashington, DCApril 24, 2009

John Lushetsky

Acting Deputy Assistant Secretary

Energy Efficiency

Department of Energy

Office of Energy Efficiency and Renewable Energy

U.S. Department of Energy Solar Energy Technologies Program Slide 2

U.S. Department of Energy

Annual Budget: $27 Billion (FY09) Energy Efficiency, Renewable Energy (EERE)

Annual Budget: $1.9 Billion (FY09)

10 Programs

Energy EfficiencyBuilding Technologies

Weatherization & Intergovernmental

Industrial Technologies

Federal Energy Management

Vehicles

Solar Energy Technologies Program (SETP)

Annual Budget: $175 Million (FY09)

~20 Staff (incl. contractors)

Renewable EnergyWind & Hydropower

Biomass

Geothermal

Hydrogen, Fuel Cells & Infrastructure

and ….

U.S. Department of Energy Budget Breakdown


Photovoltaics (PV)

Concentrating Solar Power (CSP)

DOESETP

DOESETP

Market TransformationGrid Integration

Distributed Generation - on-site or near point of use -

Centralized Generation - large users or utilities -

The SETP is executing four critical sub-program to reducesolar technology cost and achieve high penetration


Funding for the SETP has been increased in response to the Solar America Initiative

4


FY09 Projected Solar Budget

By Technology By Recipient

By Term


NREL and SNL provide a strong base for solar development partnerships with industry

• Over 200 scientists and engineers with deep understanding of all solar technologies

• Areas of expertise– Crystalline silicon and thin-film PV – Flat-plate and concentrator PV – Process development and engineering – System development and testing– Measurement and characterization– Reliability engineering– Next-generation PV technologies– CSP components and testing– Grid integration and power electronics– Policy, market, and financial analysis

Collaboration Types– Cooperative R&D Agreements (CRADA)– Work-for-Others– Technical Service Agreements– Technology Licensing


The SETP is focused on enabling high penetration of solar energy technologies and achieving grid parity by 2015


DOE’s Solar Energy Technologies Program (SETP) works along the whole RD&D pipeline


The SETP is a critical part of the totalfunding available for solar technologies

1. Preferential access to national labs

2. Fostering support for solar within large companies

3. Legitimizing young companies and new technology

4. Non-dilutive to company financing; minimal IP requirements

1. Preferential access to national labs

2. Fostering support for solar within large companies

3. Legitimizing young companies and new technology

4. Non-dilutive to company financing; minimal IP requirements

DOE Funding Advantages


Challenges: Photovoltaics

• Continue to drive down costs and develop sufficient product diversity to address and maximize all market segments

• Ensure adequate supply chain for a large and rapidly growing industry

• Continue to provide reliable products with 30 yr lifetimes (both actual and perceived)


DOE’s industry R&D programs include diverse technologies for potentially diverse PV markets

• Technology Pathway Partnerships focus on minimizing total system cost

• Incubator program focuses on scaling up innovative new solar technologies


DOE’s Next Generation PV seeds the beginning of the pipeline with high risk/ high payoff projects


Challenges: Concentrating Solar Power

• Cost reductions and efficiency improvements must be achieved– Increase mirror reflectivity and durability– Increase receiver absorption – Identify lower freezing-point chemical solutions for

heat storage– Increase heat storage beyond 7 hours– Grow the supply chain for advanced components– Develop innovative CSP systems for lower cost

and operation in wider areas• Identify the appropriate land areas for construction and

ensure environmental impacts are minimized• Develop a streamlined federal land application process


Addressing CSP Barriers

• Concentrating Solar Power Components– Supports companies to develop storage

solutions, manufacturing approaches, and new system concepts for large-scale CSP plants

• Advanced High Temperature Storage – Supports long-term research activities and

near-term demonstration in developing advanced heat transfer fluids and novel thermal storage concepts

• Partnering with BLM on the Solar Programmatic Environmental Impact Statement to accelerate access to BLM land

U.S. Department of Energy Solar Energy Technologies Program Slide 15 Slide 15

DOE funds CSP Industry R&D to reduce system costs


Renewable Energy Zones (REZ)

• Concentrated development area to lower infrastructure costs– One-time infrastructure build-out for multiple development

projects within the zone– Enhanced collaboration with key partners

• State energy offices• Power marketing administrations• Power purchasers• Local utilities

• Better electrical transmission and environmental planning– Single environmental impact study for entire site– Transmission sized to meet 100% development of REZ

• Cost of transmission build-out spread over many power plants

• Competitive selection of solar projects– Upfront evaluation of technical viability and project financing– Ability to better coordinate project time schedules

• Enable coordinated approach to environmental assessments

• Volume pricing agreements for engineering and construction (E&C), turbines, piping, steel, concrete, and other commodity materials


Challenges: Grid Integration

• Ensure safe and reliable two-way electricity flow

• Develop smart grid interoperability• Create models for renewable systems that

allow them to be included in planning and analysis tools

• Integrate energy storage for short-term load balancing and long-duration peak shifting

• Integrate solar with time-of-use pricing and demand response

• Develop more reliable inverters (>10 yrs)• Understand how a multitude of large

megawatt systems affect grid stability • Understand how various climates and

conditions affect system reliability


Addressing Grid Integration Barriers

• Solar Energy Grid Integration Systems (SEGIS) is an industry partnership collaborative program – Will allow customer-generated

electricity to be better allocated – Defines requirements for energy

storage– The SEGIS “brain” is expected to

be a combination of the inverter, controller and energy management system

• The PV Community Project focuses on the testing and evaluation of fielded PV systems


SEGIS Program Phase I Awards for Advanced Inverters/Controllers/Energy Management Systems

SEGIS Phase-I Awards


Challenges: Market Transformation

• Shortage of information about solar technologies and little consumer awareness

• Insufficient product standards • Inconsistent interconnection, net metering, and

utility rate structures and practices for solar systems • Inadequate codes and complex and expensive

permitting procedures • Inconsistent and insufficient state and local financial

incentives and other market drivers • Lack of flexible, sophisticated, and proven financing

mechanisms • Limited education for and insufficient numbers of

trained and experienced personnel and services


Addressing Market Transformation Barriers

• State Technical Outreach – Working with regulators and policy makers to ensure proper policy framework

• Utility Technical Outreach– Working with utilities to foster their acceptance and use of solar

• Codes and Standards – Collaborating with code officials to create uniform practices in solar code

development• Education, Training and Workforce Development

– Working with training centers and certifying bodies to foster a robust qualified workforce

• Solar America Cities Partnership – Partnering with 25 cities to assist with city-wide solar energy adoption

• Solar America Showcases – Providing technical assistance for large scale, highly visible PV installations


The SETP works with a number of stakeholders to grow and accelerate the U.S. the Solar Industry

Universities and National

Labs

Utilities and End

Customers

Building Industry and

Workforce Dev Groups

Financial Industry

Solar and Other Industry

Groups

State Legislators and Regulators

Federal Policy Makers and

Other Agencies

DOEEERESETP

Technology Innovation and Policy

Cost Reduction

Private Investment

New Markets and Applications

Manufacturing Scale-Up

The PV industry has the potential to enter a “virtuous cycle” of lower cost, new technology and expanded markets.

The PV industry has the potential to enter a “virtuous cycle” of lower cost, new technology and expanded markets.

To reach it’s full potential, the PV industry requires close coordination between a number of public and private entities.

To reach it’s full potential, the PV industry requires close coordination between a number of public and private entities.


The solar program will need to be continually rebalanced to adjust to dynamic industry conditions


The U.S. is rich in PV technology innovationThe US is the most diversified in solar technologies receiving VC and PE financing, with substantial

investment in thin film PV, as well as CPV and CSP

– In Europe, most of the funding has been to polysilicon and c-Si PV companies

– In Asia, almost all investment has gone to c-Si PV


More than 100 U.S. Companies

???

• US leads the World in solar innovation and R&D spending

• We are still losing ground to Germany and Japan in production

• Starting to catch up . . .More than 100 US solar start-ups and $2.5B in commercial investment in 2008 alone

• . . . but the economic downturn could threaten these innovative

companies

Solar innovation in the U.S. is threatened by the current economic downturn and lack of a domestic market


Contact Information:

JoAnn MillikenSolar Energy Technologies Acting Program ManagerU.S. Department of Energy

Email: [email protected]: 202-586-2480on the web: www.solar.energy.gov

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Thank You

John Lushetsky | The DOE Solar Program

Technology

Transcript of John Lushetsky | The DOE Solar Program