[smart grid market research] inside clean energy: a 13-page special report on the current state of...
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There are major challenges facing the U.S. today, and one of the most important of all is to meet growing energy demands. The U.S. needs a more diverse, cleaner mix of energy sources (see figure 1) that will provide security without causing irreversible harm to the globe. With shaky renewable energy support from the American public, gas prices at an all-time high (despite slight drop this week), spending from the 2009 stimulus bill mostly spent (see expired U.S. energy initiatives above) and a presidential race bringing significant focus to energy policy, clean energy will have to become more than a political-focal-point – Zpryme examines the clean energy landscape.TRANSCRIPT
biomass
coal
geothermal
nuclear
solar
energy storage
wind
Zpryme Smart Grid Insights | May 2012 | Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved
INSIDE CLEAN ENERGY A 13-Page Special Report on the Current State of U.S. Clean Energy.
1 Zpryme Smart Grid Insights | May 2012
INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
biomass
coal
geothermal
nuclear
solar
storage
wind
Table of Contents US: THE CLEAN ENERGY LANDSCAPE ................................................................. 2
US: THE CLEAN ENERGY MIX ............................................................................... 4
Biomass ............................................................................................................... 5
Biomass Recent U.S. News .......................................................................... 5
Biomass Policies, Laws, & Regulation ........................................................ 5
Biomass Leading Technologies .................................................................. 6
Coal .................................................................................................................... 6
Coal Recent U.S. News ................................................................................ 6
Coal Policies, Laws, & Regulation .............................................................. 7
Coal Leading Technologies ........................................................................ 7
Geothermal ....................................................................................................... 8
Geothermal Recent U.S. News ................................................................... 8
Geothermal Policies, Laws, & Regulation ................................................. 8
Geothermal Leading Technologies .......................................................... 9
Nuclear ............................................................................................................... 9
Nuclear Recent U.S. News ........................................................................ 10
Nuclear Policies, Laws, & Regulation ...................................................... 10
Nuclear Leading Technologies ................................................................ 10
Solar & Wind .................................................................................................... 10
Solar & Wind Recent U.S. News ................................................................ 11
Solar & Wind Policies, Laws, & Regulation .............................................. 11
Solar & Wind Leading Technologies ........................................................ 12
Energy Storage ................................................................................................ 13
Energy Storage Recent U.S. News ........................................................... 13
Energy Storage Policies, Laws, & Regulation ......................................... 13
Energy Storage Leading Technologies ................................................... 14
BOTTOM LINE: CLEAN ENERGY & THE US .......................................................... 14
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biomass
coal
geothermal
nuclear
solar
storage
wind
“By working together, we can seize
the clean energy opportunity – saving
money for consumers, promoting
sustainable economic growth and
protecting the planet for future
generations.”
Source: Steven Chu, U.S. Secretary of Energy, (quote from the third session of the Clean Energy Ministerial), April 27, 2012
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US: THE CLEAN ENERGY LANDSCAPE
There are major challenges facing the U.S. today, and one
of the most important of all is to meet growing energy
demands. The U.S. needs a more diverse, cleaner mix of
energy sources (see figure 1) that will provide security
without causing irreversible harm to the globe. “In the last
few years, we’ve seen wind and solar become
mainstream and a cost competitive energy resources for
the United States,” said John McDonald, Director,
Technical Strategy & Policy Development, GE’s Digital
Energy business to Zpryme. “While the wind market faces
some uncertainty in 2012 with the expiration of the
Production Tax Credit, wind – and renewables more
broadly – will continue to play an important role in
meeting our future energy demands.”
Installed U.S. Capacity (GW) by Renewable Energy Source, 2010 to 2035
Figure 1, Source: U.S. EIA
Renewable Energy Source* 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%
Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11%
Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%
Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11%
Solar 0.9 3.5 3.5 3.8 5.2 9.6 933%
Wind 39.1 51.6 51.6 54.6 57.5 65.4 68%
Energy Storage* 1.7 2.4 5.2 7.3 9.2 12.5 635%
*Zpryme
While progress is being made on renewable energy, most
clean energy technologies are not being deployed
quickly enough; the International Energy Agency (EIA) said
this week. “The world’s energy system is being pushed to
breaking point,” Maria van der Hoeven, executive director
of the EIA writes. “Energy-related CO2 emissions are at
historic highs, and under current policies, we estimate that
energy use and CO2 emissions would increase by a third
by 2020, and almost double by 2050,” she says. “Many
clean energy technologies are available but they are not
being deployed quickly enough to avert potentially
disastrous consequences.” In its report, Tracking Clean
Energy Progress, the EIA ranked progress on 11 key low-
carbon indicators, including renewables, nuclear energy
and carbon capture and storage, and found the world
was on track to meet just one of these targets.
The report, Tracking Clean Energy Progress, offers three
policy recommendations for moving clean-energy
technologies to the mainstream market:
1. Level the playing field for clean energy
technologies. This means ensuring that energy prices
reflect the “true cost” of energy – accounting for
the positive and negative impacts of energy
production and consumption.
2. Unlock the potential of energy efficiency, the
“hidden fuel” of the future. Making sure that energy
is not wasted and that it is used in the best possible
way is the most cost-effective action and must be
the first step of any policy aimed at building a
sustainable energy mix.
3. Accelerate energy innovation and public support
for research, development and demonstration. This
will help lay the groundwork for private sector
innovation, and speed technologies to market.
Back to the U.S. -- Americans are still divided about
whether to eliminate federal subsidies for any form of
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energy and is giving less support to nuclear power and U.S.
According to another recent report Who’s Winning the
Clean Energy Race? from the Pew Charitable Trusts, the
United States has invested the most in Clean Energy of any
country in 2011 (see figure 2), retaking the lead from
China, which had held the top sport for the last two years.
Top 10 in Clean Energy Investment, 2011
Figure 2, Source: Pew Charitable Trusts1
2011 Rank Country 2011 Investment
(USD billions)
2010 Investment
(USD billions)
%
change
1 United States 48 33.7 42%
2 China 45.5 45 1%
3 Germany 30.6 32.1 -5%
4 Italy 28 20.2 39%
5 Rest of EU-27 11.1 15.2 -27%
6 India 10.2 6.6 55%
7 United Kingdom 9.4 7 34%
8 Japan 8.6 7 23%
9 Spain 8.6 6.9 25%
10 Brazil 8 6.9 16%
The U.S. is sliced down the middle regarding the
elimination of federal subsidies for any form of energy and
is giving less support to nuclear power and U.S. funding of
renewable energy, a new poll has found, a new Yale-
George Mason University poll has found this week. Fifty-
four percent of respondents opposed doing away with
subsidies for oil, gas, coal, nuclear or renewable energy,
while 47% favored the idea. Further, just fewer than 80% of
Americans support federal funding of renewable energy
research.
1 From Who’s Winning The Clean Energy Race? - These figures have been revised by
Bloomberg New Energy Finance as of February 2012.
Adding to both public and private sector pressure, a
handful of U.S. energy initiatives have expired and may
not be renewed; for example in 2011:
Energy Efficient Homes Tax Credit for Builders
Advanced Energy Manufacturing Tax Credit
Department of Energy Section 1705 Loan
Guarantees
Department of the Treasury Section 1603 Grant
Program
With shaky renewable energy support from the American
public, gas prices at an all-time high (despite slight drop
this week), spending from the 2009 stimulus bill mostly
spent (see expired U.S. energy initiatives above) and a
presidential race bringing significant focus to energy
policy, clean energy will have to become more than a
political-focal-point.
US: THE CLEAN ENERGY MIX
As the world moves towards energy independence,
several types of clean energy technology have attained
media attention, have policies and laws that regulate
them, and have technologies that are being developed
to further increase efficiency and safety.
Biomass, clean coal, geothermal, nuclear, solar, wind, and
storage technologies offer the opportunity to move from
carbon based energy products to clean, renewable
energy sources.
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Biomass
In 2011, 19,786,000 Mw hrs of electricity was created from
biomass, biogenic municipal solid waste, landfill gas,
sludge waste, agricultural byproducts, and other biomass
solids, liquids and gases. Excluding hydro and wind power,
biomass dominates the projected increases in US
renewable energy generation, being projected to
increase four-fold primarily due to Federal requirements to
use more bio-mass based transportation fuels, and state
level required portfolio scales. However, the growth rate is
also projected to slow as tax credits will expire in 2012.
Installed U.S. Capacity (GW) for Biomass, 2010 to 2035
Figure 3, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11%
The U.S. capacity for biomass is projected to grow from
2.5GW in 2010 to 2.7GW by 2035. The compound annual
growth rate (CAGR) from 2010 to 2015 is projected to be
11 percent.
Biomass Recent U.S. News
Several biomass projects have gained recent attention in
the National media. Wisconsin’s Public Service
Commission voted 3-0 to direct 75% of funding for
renewable energy efforts to biomass projects, focusing on
the state’s strengths in agriculture and forestry. This
investment brings $7.5 million to the industry. Nova
Thermal is currently installing a pilot project at
Philadelphia’s Waste Water Treatment Plant to convert
sewage into biomass fuel. In addition, Kansas has recently
received a $5 million grant to build a biofuel digester to
replace 90% of the fossil fuels it currently uses. Finally, on
April 14, an airplane flew across the Pacific Ocean fueled
by biofuels. The plane departed from Washington, and
illustrates the potential impact biofuels and is the first step
to reduce oil dependence.
Biomass Policies, Laws, & Regulation
EPA regulations are stringent, governing boilers and other
equipment that burn biomass. The main focus is on
controlling emissions of carbon monoxide, particulate
matter, hydrogen chloride, mercury, and dioxins/furans at
major sources of industrial, institutional, and commercial
boilers.
Another source of regulation is through the US Department
of Agriculture, which governs the land management
practices of the 155 national forests, 20 grasslands, and 1
prairie. The main focus of the policies is to create
standards regarding the use of the land including wildlife,
endangered species, and protected areas. The Land
Management Act has been used recently as land has
been designated for use in biomass facilities, and the
environmental effects of these facilities have been
investigated. Furthermore, the ARRA of 2009 allows eligible
taxpayers to receive a tax credit or grant from the US
Treasury Department for electricity generated by qualified
energy resources. The legislation allowed incremental
energy production associated with the expansion of
biomass facilities to increase 1.1 cent to 2.2 cents per hour
depending on open or closed loop systems.
The Energy Independence and Security Act of 2007,
establishes a target of 36 billion gallons per year of biofuel
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utilization. Through the establishment of such guidelines,
incentives and targets have allowed for the development
of the biomass field, while protecting the environment of
potential hazards. Finally, the Energy Policy Act of 2005
extended $50 million in grants in biomass energy projects,
further highlighting the importance and providing
regulations for the biomass energy.
Biomass Leading Technologies
Combustion: the main approach utilizing biomass is
to use combustion in a boiler, where the steam is
sent to a turbine, which in turns creates electricity.
Co-Generation Facilities: the combined heat and
power production facility is located on industrial sites
with a steady supply of biomass. It operates with a
combustion boiler, but the steam created is also
recovered and used for heating needs. This
produces high energy efficiency rates of over 80%
conversion rates.
Gasification: the biomass is heated in an
environment where it breaks down into a flammable
gas. After the gas is cleaned and filtered, it can
then be used in combined cycles and in gas and
steam turbines.
Anaerobic Digestion: the biomaterials go through
fermentation that converts the organic materials
into mostly methane (60%) and carbon dioxide
(40%) biogas. Enzymatic digestion and hydrolyzate
fermentation both increase the fermentation levels
and act as a catalyst for conversion.
Cookstove Technologies: the most prevalent
biomass use is in small stoves in underdeveloped
areas. Current technologies focus on improving
efficiency and lowering emissions, as well as
reducing the chance for fire or poisoning from
burning the fuel.
Coal
Coal is the largest source of electricity generation in the
United States. The EIA projects that few new coal-fired
power plants will be built and a 25% growth rate will be
experienced for coal from 2009-2035. However, several
new laws and regulations are being imposed on the coal
industry, which could offer significant challenges for future
growth.
Installed U.S. Capacity (GW) for Coal, 2010 to 2035
Figure 4, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%
The U.S. capacity for coal is projected to grow from
308GW in 2010 to 285.8GW by 2035. The compound
annual growth rate (CAGR) from 2010 to 2015 is projected
to be -7 percent.
Coal Recent U.S. News
The Obama Administration recently proposed the 1st
standards to cut carbon dioxide emissions from all new
power plants. In conjunction, the EPA proposed new
source performance standards. These standards will hold
all new coal fired power plants to the same regulations as
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natural gas powered plants. The ACCE President and CEO
released a statement in response stating that the EPA is
ignoring the effect such policies have on American
families and accuses them of attempting to stagnate the
coal industry, thus making it impossible to build new plants
due to the economic impact of such policies, and will
cause the closure of existing plants. Other news suggests
that a collaboration of US and Chinese technologies will
allow the US to utilize the billions of dollars it has spent in
research and development, as well as carbon capture
sequestration and storage in an area where one new coal
plant is built weekly on average. This collaboration will
allow the US advancements in clean coal technology to
be utilized on a large scale, in an area with fewer
regulations.
Coal Policies, Laws, & Regulation
In April 2012, the EPA proposed new source performance
standards for all new fossil-fired electricity generating units.
This standard required that the emissions from coal fired
plants be equal to plants generating electricity from
natural gas. The EPA has also proposed National Uniform
Emission Standards for storage vessels, transfer operations,
and control devices. The Clean Air Amendments promote
the use of clean, low-sulfur coal, as well as the
development of innovative technologies to clean high-
sulfur coal. In addition, the amendments encouraged
existing plants to repower with clean coal technologies.
Finally, laws govern the storage of the byproducts of coal
combustion, namely carbon dioxide, to prevent spills or
contamination of the soil and water supply.
Coal Leading Technologies
Post-Combustion Capture: Flue Gas Separation
treats the carbon dioxide as a pollutant and passes
the flue gas through an amine solution where it is
absorbed. 20-25% of the total plant output is
reduced due to reduced efficiency and the energy
requirements of the capture process.
Oxyfuel Combustion: the coal is burned in an
oxygen-rich environment. The flue gas is mostly
carbon dioxide and thus is more readily captured by
the amine scrubbing process. It is achieved for
about half the cost and the plant utilizes several
pieces of technology, including an air separation
unit, boiler island, compression and purification units.
Integrated Gasification Combined Cycle (IGCC):
using the coal and steam to produce hydrogen and
carbon dioxide from the coal, it is burned in a gas
turbine and secondary steam turbine. The gasifier is
fed oxygen instead of air and the result is highly
concentrated carbon dioxide which is more readily
captured post-combustion.
Pre-Combustion Capture: using a shift reactor to
oxidize the carbon dioxide with water, the resulting
gas steam is hydrogen and carbon dioxide. The
carbon dioxide and other impurities are able to be
separated before combustion with 85% of the
carbon dioxide removed. The remaining hydrogen
becomes the fuel for electricity generation.
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Geothermal
Geothermal energy is able to take advantage of the
consistent temperature of the earth at depths of 150-200
meters or more. The heated water is then extracted from
the earth and used to both generate electricity and heat
facilities.
Installed U.S. Capacity (GW) for Geothermal, 2010 to 2035
Figure 5, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%
The U.S. capacity for geothermal is projected to grow from
2.4GW in 2010 to 6.4GW by 2035. The compound annual
growth rate (CAGR) from 2010 to 2015 is projected to be
170 percent.
Geothermal Recent U.S. News
Ball State University in Muncie, Indiana has been
recognized for its geothermal energy system, which has
cut heating costs by 50%. The university has over 1800
bore holes on the property that are at a depth of 400 feet
below ground where it reaches an equilibrium
temperature. In addition, geothermal technology will be
used to treat contaminated soil and water from the
Lawrence Aviation Industries Superfund site in New York.
The treated water will be used to condition the air inside a
new water treatment plant, producing higher efficiency.
The US Department of Energy has announced plans to tap
into geothermal energy from the Rocky Mountain Oil Test
Center in Wyoming. This project uses hot water that is a
byproduct of oil and gas wells and converts it into
geothermal energy. The federal government has also
approved the use of geothermal technology to create
energy at the Newberry Volcano in Oregon. The goal is to
produce commercial levels of geothermal energy. Finally,
the National Renewable Energy Lab and the State of
North Dakota identified two locations to test advanced
geothermal systems in Rhame and Dickinson. These
developments in the field of geothermal energy identify
the potential usages of geothermal energy, as well as
advanced technologies that can make the energy type
more productive.
Geothermal Policies, Laws, & Regulation
First, the 1974 Geothermal Research Development and
Demonstration Act established the first set of policies in
geothermal energy and serves as a foundation for all
geothermal energy research and production. In 2007,
Congress passed the Advanced Geothermal Energy
Research and Development Act, which supports and
expands geothermal energy production, and awards
grants to establish Geothermal Technology at centers of
higher education. It also established geothermal energy
as a priority and an area to be further explored. More
recently geothermal energy is further supported by
programs where residential and commercial facilities
qualify for either a federal investment tax credit or
production tax credit by employing geothermal energy
technology.
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Geothermal Leading Technologies
Closed Loop Systems: circulate water or a mixture of
antifreeze and water through a series of closed,
buried pipes.
Open Loop Systems: also utilize a series of closed,
buried pipes, but utilize a lake, well, or pond to draw
water into the system. The energy is extracted from
the water, and then returned to its source.
Enhanced Geothermal Systems: reservoirs are
engineered to produce energy from existing
geothermal sources. This involves improving the
permeability of rock and allows access to the Earth’s
heat at a depth. Production wells remove the water
from the rock and extract the energy from it.
Geothermal Heat Pumps: moves the energy from
the geothermally heated water to the home or
business. During the winter it uses the heat from
water heated by the earth into the home or business
and in the summer it pulls the heat from the facilities
and discharges it into the ground.
Dual Source Heat Pump: combines a traditional air
source heat pump with a geothermal heat pump.
Overall, the heat pump is less expensive in most
cases than complete geothermal heat pumps and
offers improved efficiency from traditional systems.
Nuclear
According to the World Nuclear Association there are
plans for a number of new reactors in the U.S., the
prospect of low natural gas prices continuing for several
years has dampened these plans and probably no more
than four new units will come on line by 2020.
Nuclear Power in the United States:2
The U.S. is the world's largest producer of nuclear
power, accounting for more than 30% of worldwide
nuclear generation of electricity.
The country's 104 nuclear reactors produced 807
billion kWh in 2010, over 20% of total electrical
output.
Following a 30-year period in which few new
reactors were built, it is expected that 4-6 new units
may come on line by 2020, the first of those resulting
from 16 license applications made since mid-2007 to
build 24 new nuclear reactors.
However, lower gas prices since 2009 have put the
economic viability of some of these projects in
doubt.
Government policy changes since the late 1990s
have helped pave the way for significant growth in
nuclear capacity. Government and industry are
working closely on expedited approval for
construction and new plant designs.
2 World Nuclear Association, April 22, 2012
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Installed U.S. Capacity (GW) for Nuclear, 2010 to 2035
Figure 6, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11%
The U.S. capacity for nuclear is projected to grow from
308GW in 2010 to 285.8GW by 2035. The compound
annual growth rate (CAGR) from 2010 to 2015 is projected
to be 11 percent.
Nuclear Recent U.S. News
In February 2012, the Nuclear Regulatory Commission
(NRC) approved license to build new nuclear reactors. The
commission approved a combined construction and
operating license for an AP1000 reactor design from
Westinghouse Electric3. The approval for new commercial
reactor was the first since Three Mile Island accident in
1979.
Nuclear Policies, Laws, & Regulation
The Obama Administration remains committed to nuclear
power as part of its overall energy policy. It has provided
an $8 billion in loan guarantee for construction of new
reactors at the Vogtle and another $200 million support for
NRC licensing. In March 2012, it announced a $450 million
to support the design, development, and licensing of two
American-made small modular reactors (SMRs) five years4.
In an aftermath of the Fukushima accident, the NRC has
3 www.nei.org/newsandevents/newsreleases/nrc-approval-of-plant-vogtles-
construction-operating-license-opens-new-nuclear-energy-era 4 www.ne.doe.gov/newsroom/2012PRs/nePR032212.html
adopted new safety rules that would require power plants
to have plans in place to prevent and deal with potential
natural disasters. Although the commission has approved
the new regulations, it disagrees on the implementations.
The new rules will likely require plants to undertake costly
upgrades. Nuclear power companies are given a year to
propose their plans to be fully compliance by 20165.
Nuclear Leading Technologies
Currently, five nuclear reactors designs are under the NRC
design certification process. These include6:
GE – Advanced Boiling: Water Reactor (ABWR)
Westinghouse: Advanced Passive 1000 (AP1000)
GE-Hitachi Nuclear Energy: Economic Simplified
Boiling-Water Reactor (ESBWR)
Mitsubishi Heavy Industries: U.S. Advanced
Pressurized-Water Reactor (US-APWR)
AREVA: U.S. Evolutionary Power Reactor (U.S. EPR)
Solar & Wind
Solar and Wind technology are two of the most well-
known clean energy types. Solar energy is utilized in all
states, both at commercial facilities and in residential
environments. Wind technology is also common place
and can be utilized through both wind farms and at
5 www.pbs.org/wgbh/pages/frontline/health-science-technology/nuclear-
aftershocks/first-post-fukushima-safety-rules-approved-by-nrc/ 6 www.nrc.gov/reactors/new-reactors/design-cert.html
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individual facilities.
Installed U.S. Capacity (GW) for Solar, 2010 to 2035
Figure 7, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Solar 0.9 3.5 3.5 3.8 5.2 9.6 933%
The U.S. capacity for solar is projected to grow from .9GW
in 2010 to 9.6GW by 2035. The compound annual growth
rate (CAGR) from 2010 to 2015 is projected to be 933
percent.
Installed U.S. Capacity (GW) for Wind, 2010 to 2035
Figure 8, Source: U.S. EIA
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Wind 39.1 51.6 51.6 54.6 57.5 65.4 68%
While the U.S. capacity for wind is projected to grow from
39.1GW in 2010 to 65.4GW by 2035. The compound annual
growth rate (CAGR) from 2010 to 2015 is projected to be
68 percent.
Solar & Wind Recent U.S. News
NASA’s new Moffet Field facility has been rated the
greenest federal building in the nation, because of its
usage of green technology, including solar and wind
systems. The 80,000 sq. ft. building has earned a LEED
certification for its use of green technologies. Solar power
has also reached international attention as a law suit has
been filed against Chinese firms for engaging in unfair
trade practices and offering low cost imports that have
been flooding the US market and “undermining the US
solar industry” according to Solar Wind Industries America
and others involved in the suit. Wind technology has also
entered the spotlight as a lawsuit filed by environmentalists
has been settled, thus allowing turbines to be installed in
Nevada’s 1st wind farm. The settlement also provides
additional research on how construction of the facility will
affect the sage grouse and bats indigenous in the area.
Maine’s largest wind energy developer lost approval of a
project, as nature guides and those engaged in the
tourism industry opposed development. The company
plans to offer a scaled down version of the project to
reach a compromise in the future. First Wind secured the
financing ($76 million) to construct the Bull Hill Wind
Project, the 5th in Maine, where it will create construction
jobs, increase local tax revenue, and provide clean
energy for 18,000 homes in the area. Finally, American
Wind Energy Association released an annual report,
claiming that more than $20 billion in private investments
was generated through wind power, with the majority
dedicated to building new facilities and producing more
efficient turbines.
Solar & Wind Policies, Laws, & Regulation
Much of the regulations on the solar energy are created
through the Solar Energy Industries Association’s
collaboration with the US Congress to draft regulations
that affect the industry in areas including finance,
manufacturing, and tax programs. In addition, the
American Wind Energy Association has also worked with
Congress to create reforms in both wind energy and in the
renewable energy field as a whole.
Most recently, the Clean Energy Standard Act of 2012 has
been proposed to create a national standard for clean
and renewable energy generation, with a goal of 80%
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clean energy generation by 2035. Programs include the
Department of Energy Loan Guarantee program, which
was created in the Energy Policy Act of 2005 which aims to
support new and innovative technologies, as well as
reduce the risk associated with introducing these new
products into the market.
Renewable energy standards and clean energy standards
require a certain percentage of electricity to be
generated by renewable sources. Both standards have
increased investments in both solar and wind power. The
Energy Policy of 1992 was the first driver of renewable
energy investment, establishing a production tax credit
which started massive investments in the renewable
energy field. Wind energy was a key recipient of said
investments. Wind energy’s main regulations are primarily
concerned with wildlife protection, as well as noise control.
Both issues have prevented some wind farms from being
erected or otherwise affected their size or location.
Solar & Wind Leading Technologies
Back Contact Silicon PV Panels: recently installed at
a DOE facility, these solar panels demonstrate an
efficiency of 23.4%, a record for mass produced,
large scale solar panels. All of the contacts are on
the back of the solar cell, leaving a larger space on
the top for energy production.
Microconverters: solar panels produce DC power,
while our homes utilize AC power. These systems
convert the electricity produced and allow the solar
panels to produce AC energy that is ready to use.
Thin Film: the use of thin film has been expanded to
allow spray on options and include window liners.
The improved technology allows the ability to utilize
solar power on untraditional sources, including
windows. In addition, the spray-on options allow
solar panels to be installed in nontraditional
locations where solar energy was unable to be
cultivated in the past.
Scaled Wind Farm Technology (SWIFT): SWIFT
technology enables efficient and near silent wind
turbine operation, is grid connected and can be
mounted to a structure or a pole. The SWIFT
technology is ideal to urban and suburban areas.
Floating Wind Turbines: these large scale wind
turbines are anchored to the sea floor by cables
and float over waters over 100m deep. In deeper
waters, the wind is consistently higher and the
turbines are able to move with changing waters,
thus being able to survive storms. If a problem does
occur, they can be towed to port for repairs,
minimizing down time.
Micro Wind Turbines: these small turbines are
designed for use on smaller scale projects and are
being seen at homes in residential areas. Several
different types and models are available depending
on need. Some are designed for powering a small
appliance, and modular units are available for
larger scale use on the roofs of urban and suburban
areas. Some are pole mounted and several types
have also eliminated the need for a pole. These
small scale models offer options to users and with so
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many options available, a user is able to find one to
meet their specific needs.
Energy Storage
One challenge that has faced clean energy in the past is
energy storage. Because of the intermittent nature of
renewable energy, electricity can be stored during off-
peak hours and channeled into the grid during high
demand times.
Installed U.S. Capacity (GW) for Wind, 2010 to 2035
Figure 9, Source: Zpryme
Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth
(2010 to 2035)
Energy Storage 1.7 2.4 5.2 7.3 9.2 12.5 635%
The U.S. capacity for energy storage is projected to grow
from 1.7GW in 2010 to 12.5GW by 2035. The compound
annual growth rate (CAGR) from 2010 to 2015 is projected
to be 635 percent.
Energy Storage Recent U.S. News
Bill Gates made recent news as he spoke about the need
to increase energy storage. He said that all of the
batteries in the world could contain 10 minutes of the
world’s electrical needs. Because of the inadequate
storage capacity, this makes the energy produced from
biomass, clean coal, geothermal, solar and wind energy
secondary problems. Energy is lost consistently from these
sources because it is incapable of being stored efficiently.
Natural Gas also brought attention to the inadequacy of
energy storage as it was released that at its current rate of
production, a record high level, that all of the US storage
facilities could be filled by the fall and this would cause
prices to fall by 50%. Hydrogenics Corporation entered
into a contract with Elbridge, Inc to develop large, utility
scale energy storage. AES Energy Storage will also work
with Portland General Electric to create storage facilities
to bridge gaps and further incorporate renewable energy
into their electricity mix. This will be the first commercial-
scale energy storage project in both Oregon and the
United States.
Clearly, focus on energy storage and its ramifications have
come to the forefront of the United States news.
Energy Storage Policies, Laws, & Regulation
The EPA has enacted several policies to govern storage
devices. The Safe Drinking Water Act of 2010 governs the
practice of injecting the earth with carbon dioxide for
underground storage. It established a new classification
of well and set up the minimum technical requirements to
protect underground drinking water. Underground
storage tanks are also governed by a series of EPA
regulations. These policies are designed to prevent loss or
compromise due to structural failure, corrosion, overfills or
spills for as long as the tank is used. Industry codes and
standards also govern the construction of the
underground storage tanks to insure proper function.
RCRA and CWA requirements have also created stringent
standards that have significantly reduced the use of
underground storage tanks. This has also increased the
use of above ground tanks, which have less federal
regulations. These requirements require leak detection,
corrosion, protection and control for spills and overfills.
Finally, the Federal Regulatory Commission has issued a
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mandate to support the development of energy storage
technology to provide intermittent support to the electric
grid and maintain the 60 hertz frequency on which the
grid functions. The mandate increases the payment to
companies that provide the fastest and most accurate
frequencies for energy storage.
Energy Storage Leading Technologies
Pumped Hydro-Storage: oldest and largest type of
storage is comprised of two tanks, one lower tank
and one higher tech. During off-peak times, water is
pumped into the higher tank and stored. When
demand increases, the water is pumped to a lower
tank and passes through turbines, which generate
energy on its way.
Compressed Air Energy Storage (CAES): uses off-
peak power to pressurize air in an underground
cavern or reservoir which is then used during peak
times to power a generator or turbine. This process
removes the need for air compressors, and power
produced is increased 2 to 3 times.
Regenerative Fuel Cells: redox flow cell batteries- a
reversible electrochemical reaction between two
electrolytes stores and releases energy in a closed
loop cycle without discharge. Electrical energy
from the grid is converted to potential chemical
energy.
Superconducting Magnetic Energy Storage (SMES):
a cryogenically cooled core of a superconducting
material creates a direct current, which in turn
creates a magnetic field which stores energy.
Lithium-ion Batteries: is a family of rechargeable
battery types in which lithium ions move from the
negative electrode to the positive electrode during
discharge, and back when charging. Lithium-based
batteries are common in two applications: Power for
portable equipment and low-power, long-life
applications.
Hydrogen: hydrogen can be stored in multiple
forms- gas, liquid, metal hydride and carbon-based
forms. A chemical reaction can release this stored
energy, creating a closed loop, and converting the
stored energy into grid accessible energy.
BOTTOM LINE: CLEAN ENERGY & THE US
It is clear that the amount of coal and oil available are
declining and federal regulations simply highlight the
growing dedication to moving to more renewable and
clean energy sources. Recent improvements in the
technology available in all areas, biomass, coal,
geothermal, nuclear, solar, wind and storage will lead the
way as a move to decreased dependence on fossil fuels
and increased reliance on renewable, clean energy
sources is embraced on a larger scale. For this transition to
be the most successful, additional funding at the federal
level should encourage additional research and
development, as well as deployment on a small scale. In
addition, more collaboration by the federal agencies and
industry associations must be developed to establish the
proper regulatory framework to guarantee both
environmental safety and provide growth opportunities.
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Also the U.S. continues to be at the top for clean energy
venture capital and private equity investments, one
market space in particular, the Smart Grid. Ken Geisler, VP
of Strategy for the Siemens Smart Grid Division, told Zpryme
recently, “the Smart Grid is focused on three main
elements. Improved grid reliability, informed consumption
and integration of variable and renewable resources.
Utilities are moving rapidly to determine the best way
forward in each of these areas, leading with grid
automation, enhanced control center capabilities, and
advanced metering infrastructures in preparation for
proliferating renewable resources at both the transmission
and distribution levels. The key to enabling the expansion
of these renewable resources will be in establishing the
integrated end to end solution managing renewable
variation, controllable demand capacity, grid automation,
situational awareness, and verification and education
through metering. Ultimately, providing for greater energy
usage while reducing emissions and reliance on fossil
fuels.”
On the flip side, two of the clean energy areas that offer
the largest growth potential currently are biomass and
storage. Technology is currently being utilized and
developed that will allow for significant growth rates in the
near future. Geothermal is also underutilized and offers
growth potential, however drilling the holes necessary to
utilize the technology more fully are prohibitive in the near
term.
Solar and wind technologies are much more fully
developed than their clean energy counterparts, and are
likely to experience reduced costs, making them more
likely to be adopted more fully in the future. Finally, coal
offers far less potential, especially considering the
worldwide trend of decreasing emissions, which are likely
to become more stringent in the future.
For the transfer to more clean energy sources to be truly
successful, a collaborative approach utilizing multiple
energy sources based on location and needs, as well as
employing storage technology to insure the highest level
of utilization of said resources is necessary.
Utilities should be encouraged to investigate ways that the
renewable energy mix they utilize can be enhanced
through employing renewable, clean energy sources that
meet their geographic demands, while implementing
storage technology to store the clean energy they create
during off-peak times for use during peak demand
periods, thus improving performance and increasing
efficiency.
16 Zpryme Smart Grid Insights | May 2012
INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
Zpryme Credits Editor
Megan Dean
Managing Editor
Samarth Bahl
Research Lead
Stefan Trifonov
Special Thanks To Ken Geisler
VP of Strategy; Smart Grid Division Siemens
John McDonald
Director, Technical Strategy & Policy
Development; GE Digital Energy Business
GE
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