planning for arizona’s energy futureregulatory drivers in arizona • renewable energy standard...
TRANSCRIPT
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Planning for Arizona’s Energy Future
Brad Albert, General Manager of Renewable ResourcesArizona Public Service Co.
National Conference of State Legislators (NCSL), Energy Task ForceDecember 8, 2010
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Regulatory Drivers in Arizona• Renewable Energy Standard (“RES”) Total Energy
Requirement
• 3% of retail sales in 2011
• Increasing to 5% of retail sales by 2015
• Incrementally increasing to 15% by 2025
• RES Distributed Energy Requirement
• Minimum 20% of the RES total energy requirement in 2010 increasing to 30% in 2012
• ½ from residential customers, ½ from non-residential customers
• APS commitment to exceed RES requirements
• 3.4 Million MWHs by 2015 (about 11% of retail sales)
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Existing Conventional Generation
3
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Renewable Energy Resources
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APS Resource Portfolio
Renewable Energy Type
MW
Wind 289
Solar 385
Biogas/Biomass 24
Geothermal 10
Total 708
Conventional Owned Fuel Type
MW
Nuclear 1,146
Coal 1,753
Gas – Combined Cycle 1,871
Gas – Simple Cycle 1,022
Gas – Steam 430
Oil – Simple Cycle 66
Total-Owned 6,288
Purchases/Exchanges 2,300
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Nuclear28%
Coal39%
Natural Gas26%
Renewables3%
Energy Efficiency
4%
2011
Nuclear19%
Coal27%
Natural Gas21%
Renewable17%
EnergyEfficiency*
16%
2025
Energy Sources 2011 vs. 2025
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Renewable Energy Options• Wind
• Very strong resource in neighboring states (NM, CA)
• Limited access to transmission
• Some commercially viable areas in Arizona
• Solar
• Some of the best solar conditions in the world
• Ability to implement projects relatively close to load center
• Geothermal
• Strong potential in neighboring states (CA, NV, NM)
• Limited potential in Arizona
• Biomass
• Arid conditions in Arizona provides limited potential for in-state development
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APS’s Utility-Scale Solar Initiatives• Concentrated Solar Power (Thermal)
• Power generation using conventional steam generation technology
• Solar energy provides the heat source• Greatest efficiency created when using water for cooling
• Thermal energy storage can be incorporated
• Generally 100MW or greater
• Most common type is parabolic trough technology
• Sunlight is focused on long, rectangular, highly reflective U-shaped mirrors arranged in parallel rows
• Single-axis tracking system that focuses solar energy onto a central receiver tube located along the focal line of the mirrors heating fluid
• Solar Photovoltaic (PV)
• Direct conversion of sunlight to electricity
• Modular components, easy to scale size to meet resource need
• Average residential roof-top system approximately 7kw• Utility scale systems are from 5MW to 250MW in size
• Fixed, single or dual axis tracking
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Solar Thermal-Solana • 280 MW Concentrated Solar Plant with 6 hours of thermal
energy storage
• Awarded Conditional commitment for DOE loan guarantee in July 2010
• Location: 10 miles west of Gila Bend, AZ
• Total Generation: 280 MW
~about 900,000 MWHs energy
production per year
• Size: 3 square miles
• Jobs: Creates 80 permanent jobs
• Commercial operation
expected in 2013
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~44MW
Difference
APS Load: PV vs. CSP with Storage
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
0
20
40
60
80
100
120
140
160
180
200
Lo
ad
MW
(7/6
/20
15
)
Pro
du
cti
on
MW
(10
0M
W C
ap
ac
ity)
PV CSP w/6 Hr Storage Load Profile
Hours
PV
CSP
Load
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Utility Scale Solar PV
• Seven (7) Projects currently under development 105 MW
• Third Party Owned with Power Purchase Agreements (PPA)
• Prescott, 10 MW
• Ajo, 4.5 MW
• Bagdad, 15 MW
• Buckeye, 6 MW
• Utility Owned – AZ Sun Initiative
• Luke Air Force Base, 15 MW
• Gila Bend, 18 MW
• Hyder, 17 MW
• Chino Valley, 20 MW
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Luke Air Force Base
• 15 MW Solar Photovoltaic Power Plant
• Equal to 3,750 Arizona homes or 50% of Luke AFB’s energy needs
• Construction scheduled to start January 2011, Commercial Operation date Summer 2011
• Will be the largest solar installation on U.S. Government property
• Located on 100 acres of underutilized land on the base
• Single-axis tracking system of 52,000 SunPower solar panels
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Utility Scale Solar Plants: PV vs. CSP• Solar Photovoltaic (PV)
• Minimal water usage
• Developable at smaller scale or larger scale
• Smaller required land area to be economical, allows for more siting options
• Susceptible to significant and rapid fluctuations in power output with onset of clouds
• Less than full output at time of peak load
• Can be interconnected at many different levels of the transmission/distributionsystem
• Concentrated Solar Power (Thermal)
• Must be developed at large scale to be economical
• Greater land area, increased complexities in land acquisition, permitting, and ability to interconnect into existing transmission affordably
• Relatively large “step” additions to the renewable portfolio
• Transmission interconnection can be more complex
• Thermal technology reduces power output fluctuations due to cloud coverage
• Easier to incorporate thermal energy storage directly into design
• Two Options: Wet-cooled or Dry-cooled
• Significant reduction in efficiency and cost increase for dry cooling
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Critical Role of Legislature
• Stability of State and Federal Policy
• Long term predictability
• Present landscape of utility industry
• Stable Environment that is supportive of these types of Long Term infrastructure investments
• Supportive Cost Recovery from regulatory body
• State and Local Support
• State RPS (Renewable Portfolio Standard)
• Tax Policies
• Permitting Process
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Thank You.hank You
Brad Albert, General Manager of Renewable Resources