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Sustainable Energy Portfolio Management in Support of the Smart Grid Concept
Dr. Bartosz Wojszczyk – Senior DirectorDr. Bartosz Wojszczyk – Senior DirectorBob Ulsuki, P.E. – Executive Advisor
Carl Wilkins – DirectorDr. John Enslin – Vice President
Quanta Technology
Grid-Interop 2008 Atlanta, Georgia
November 11-13, 2008
Grid-Interop 2008
Outline
Emerging Trends In Market, Energy And Technology Investments
Political Climate
Vision For Utilities Of The Future
Business Drivers
Sustainable Energy Technologies In Support Of “Smart
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Sustainable Energy Technologies In Support Of “Smart Grid” Concept
Challenges Facing Utilities/Customers
Conclusions
Grid-Interop 2008
Driving Force: Market
Energy demand growth:
by 2025, we will need approx. 428 GW of new capacity,
by 2050, we will need approx. 25-30 TW/year of electric power,
Energy business value: 2007 – $6Trillion (10th of the world’s economic output)
Society mindset changing:
Growing interest in more environmentally friendly and more efficient energy sources (e.g. Wal-Mart: solar initiative; Google: renewable and plug-in hybrid incentives)
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(e.g. Wal-Mart: solar initiative; Google: renewable and plug-in hybrid incentives)
Increasing customer expectation for uninterruptible power.
Clean Power Market:
Growing concerns over power plant pollutions, and how it will be ultimately regulated.
Growing interest in power generation diversity: fossil fuel vs. renewable,
Balance slowly shifting from central to local station generation plants (DER)
Grid-Interop 2008
Driving Force: Investments
• Changing trends in energy investments and initiatives in R&D and capital projects:
• E.g. Google, Nov 27, 2007: initiative RE>C (renewable energy cheaper than coal),
• E.g. GE Financial Services raised investing target from $4 billions to $6 billion up to 2010,
• Major buy-out groups and institutional investors are shifting toward
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• Major buy-out groups and institutional investors are shifting toward energy generation assets with dependable long-term contractual commitments
• Governments and private investors have invested significant sums of R&D capital to support energy technologies.
Grid-Interop 2008
Driving Force: Investments
Global venture capital (VC) investment: renewable energy $140 billion in 2007, up 35% from 2006’s $86.5 billion
US VC investment: renewable energy $3.4 billion in 2007
Solar technology over $1 billion invested
Energy efficiency/“smart grid” sector $420 million
Industry Sector Q3 2008,VC Number of
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Industry Sector Q3 2008,VC
FundingNumber of
Investments Solar $1,588 Million 26
Energy Efficiency/Distributed
Resources/"Smart Grid"$272 Million 14
Geothermal $216 Million 4Automotive/Transportation $193 Million 8
Water Technology $182 Million 10Ethanol/Biofuels $150 Million 8
Wind Energy $140 Million 8Batteries/Fuel Cells $49 Million 4
Carbon/Energy Storage $30 Million 3"Green" Building $29 Million 3
"Green" IT/Lighting $27 Million 4Others $11 Million 3Total $2,887 Million 95
Grid-Interop 2008
Driving Force: Legislation
The Emergency Economic Stabilization Act of 2008 (H.R. 1424)
Grants an 8-year extension of residential and business ITCs for solar, small-wind and geothermal systems.
Eliminates the $2,000 cap on solar residential ITC and allows a 30% residential energy tax credit for small-wind energy and geothermal heat pump property expenditures.
Eliminates the prohibition on utilities obtaining ITCs.
Authorizes $800Million for clean energy bonds and renewable energy
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Authorizes $800Million for clean energy bonds and renewable energy generating facilities.
Gives “clean coal” tax benefits similar to renewable energy generation tax benefits.
Grants a 1-year extension of PTC for wind projects.
Grants a 2-year extension of PTC for solar, closed and open-loop biomass, geothermal and hydropower facilities
Creates a 2-year ITC for marine and hydrokinetic energy technologies (tidal, wave, current, ocean thermal).
Grid-Interop 2008
Major Changes to Energy Initiatives (Nov. 5, 2008)
Obama Policies:
Create 5 million new jobs by investing $150 billion over the next 10 years to build a clean energy future.
Within 10 years, save more oil than we currently import from the Middle East and Venezuela combined.
Put 1 million Plug-In Hybrid cars—cars that can get up to 150 miles per gallon—on the road by 2015.
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miles per gallon—on the road by 2015.
Ensure that 10% of our electricity comes from renewable sources by 2012, and 25% by 2025.
Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions by 80%, by 2050.
Grid-Interop 2008
Other Voices ….
T. Boone Pickens: Building wind facilities in the corridor that stretches from theTexas panhandle
to North Dakota could produce 20% of the electricity for the UnitedStates at a cost of $1 trillion. It would take another $200 billion to build the capacity to transmit that energy to cities and towns. That's a lot of money, but it'sa one-time cost. And compared to the $700 billion we spend on foreign oil every year, it's a bargain.
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Al Gore: The United States added enough wind power in 2007 alone to provide
electricity to more than a million homes. Texas is the fastest-growing wind power state and about 15% of the country has excellent wind, especially the Great Plains. Today's efficient wind turbines are sleek and powerful, and can be taller than the Statue of Liberty with blades longer than the wings of a Boeing 737. When connected together through a national grid, wind power could provide at least one-third of our total electricity needs.
Grid-Interop 2008
Vision for the Utility of Tomorrow: Smart Grid
20th Century Grid 21st Century Grid
Electromechanical, Solid State Digital/Microprocessor
One-way and local two-way communication Global/integrated two-way communication
Limited energy storage implementation High energy storage penetration
Built for centralized generation Integrated distributed generation, renewables, supports EV or hybrids
Local/limited protection, monitoring and control systems (prone to failures & blackouts)
WAMPAC, adaptive protection and intentional islanding
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systems (prone to failures & blackouts) intentional islanding
"Blind“/few sensors Self-monitoring/high visibility/many sensors
Manual restoration Semi-automated, "self-healing"
Scheduled equipment maintenance Condition-, performance-based maintenance
Limited control over power flow Pervasive control system & state estimators
Estimated reliability Predictive reliability
Few customer choices, limited price information Many customer choices, full and real-time
price information – RTP, CPP, etc.
Grid-Interop 2008
Business Drivers: New Business Environment
Sustainable Energy
Resources& PHEVs
GreenhouseGases
AgingWorkforce
OperationalEfficiency
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RELIABILITY & QUALITY OF SUPPLY
SupplyReliability
PowerQuality
& PHEVs
DemandResponse
AgingInfrastructure
Condition-, Performance-Based Maintenance
Grid-Interop 2008
“Smart Grid” and Sustainable Energy
Sustainable energy generation should be part of “Smart Grid” concept for electric utilities:
Utilities, and consumers will accrue added value through wide deployment of “new” energy generation technologies to achieve improved reliability, reduced O&M costs, avoidance of new capacity, and increased customer satisfaction.
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Applied to Sustainable Energy Generation by leveraging advanced communication, monitoring and control infrastructure and technologies
Not a set of shrink-wrapped solutions; the set and scope are unique to each utility/customer, in the context of traditional generation
Grid-Interop 2008
Translated into Requirements
Better visibility to the utility system and end-user
Synergy and common business objectives between IPP and Utility
Advanced local and wide-area intelligence control of the system
Communications infrastructure (e.g., Peer-to-Peer)
Ability to communicate/interoperate devices
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Condition-, performance-based maintenance
Optimal utilization of existing infrastructure capacity
DG, storage & renewable forming micro-grids
PQ and voltage regulation concern
Grid-Interop 2008
Sustainable Energy Technologies in Support of “Smart Grid” Concept
Current and continuously improving renewable energy technologies in support of the “smart grid” concept include:
Cadmium Telluride, Copper Indium Gallium Selenide (CIGS) and Amorphous Silicon (a-Si) Thin-film
Multi-junction Photovoltaic (PV)
Concentrating Solar PV (CSPV)
Building integrated PV (BIPV)
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Building integrated PV (BIPV)
Distributed small-wind turbines
Small 1-5 MW industrial biogas turbines (~ 40% efficiency)
Recuperated small biogas turbines (34-43% efficiency)
Microbial fuel cells
Power Chips (up to 70% efficiency)
Various wave, tidal and run-of-river technologies
Grid-Interop 2008
Challenges Facing Utilities/Customers
Financial constraints:
Many “green/smart grid ” technologies are still relatively expensive
Difficulties in financing, bonding and insuring large projects
Slow-moving customers and utility industry:
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Slow-moving customers and utility industry:
Risk-averse mentality
Evolving technologies
Uncertain life-span of new technologies (relatively short performance record)
Power and data interfaces and interconnections for “Smart Grid” need improvement
Grid-Interop 2008
Challenges Facing Utilities/Customers
Flexible and cost-effective energy storage systems should be developed and integrated into the “smart grid”
Data management needs to be focused on integrating different technologies in a plug-and-play fashion
Standards and regulations should be tightened since
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Standards and regulations should be tightened since they are the key driving force in limiting interconnection problems
Utility acceptance and revenue generation from “smart grid” options are paramount
Grid-Interop 2008
Conclusions
“Big changes in the energy system, especially when implemented quickly, come with numerous
uncertainties…” the impact of which might not be fully understood.
Energy Information Administration
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Thank You
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Bartosz Wojszczyk, Ph.D. Quanta Technology
Phone: 919.619.5981E-mail: [email protected]
Grid-Interop 2008