Alternative Energy Technologies Perspectives and Comparisons
by
Tom KonradPresented 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 TechnologiesStrengths Weaknesses
Coal Familiar, cheap fuel
Global warming, water use, emissions
Nuclear Cheap fuel Very expensive to build, proliferation, waste storage, water use
Geothermal Low impact, inexpensive
Location, limited but larger resource
Biomass & Waste to Energy
Free/cheap fuel
Has emissions, limited & distributed fuel supplies
Dispatchable TechnologiesStrengths Weaknesses
Natural Gas Generation
Low emissions, Can locate almost anywhere
Fuel cost/ volatility
Demand Response
Inexpensive, reduces emissions
Utility must think “beyond the meter”
Intermittent TechnologiesStrengths Weaknesses
Wind Inexpensive Far from cities, usually not timed near peak
Solar Photovoltaic (PV)
Useful anywhere, matches well with peak
Expensive
Concentrating Solar Power
Moderate price, can be stored, near peak
Only works well in cloudless areas
Ocean & Tidal Power
Near loads Developing, still very expensive
Shifting SupplyUsing the power we have more effectively
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
Fully dispatchable storage technologies
Shifting DemandUsing the power we have more effectively
Time based pricing
Pays for itself, also reduces total usage
Utility must think beyond the meter; often requires infrastructure upgrades
Long distance transmission
Diversification of supply and demand
Takes long time to build or upgrade; politically tricky
Note on Electricity Prices• On-Peak Power can be worth as much as 10x Off-
Peak 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 ManagementOvercoming 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 ContractingOvercoming 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