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THE FUTURE OF ELECTRICITY Roger Duncan April 19, 2013

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Page 1: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

THE FUTURE OF ELECTRICITY Roger Duncan

April 19, 2013

Page 2: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

EVERYTHING

IS

ENERGY

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STEAM TURBINE GAS TURBINE

COMPRESSION-

IGNITION ICE SPARK-IGNITION ICE

ELECTRICITY PLANES

SHIPPING CARS & TRUCKS

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STEAM TURBINE GAS TURBINE

COMPRESSION-

IGNITION ICE SPARK-IGNITION ICE

COAL

GAS

NUCLEAR

BIOMASS

NATURAL

GAS

KEROSENE

GASOLINE DIESEL

Charles

Parson

s

1884

Nicolau

s Otto

1876

Rudolp

h Diesel

1893

John

Barber

1791

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WIND GENERATOR

Charles

F. Brush

1888

SOLAR CELL

Charles

Fritts

1883

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FUEL CELL

William

Robert

Grove

1839

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Conventional Energy

System

Fossil Fuel Power

Plant Office Building

Petroleum

Vehicle

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Unified Energy

System

Zero Energy Home

PHEV/BEV Distributed Utility

Fossil Fuels

Solar Wind

Nuclear

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Energy Conversion

Megatrends

When (Time)

Who (Decision-

makers)

Why (Workloads)

Where (Location)

How (Technology)

What (Fuels)

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What (Fuels)

Decarbonizatio

n

Fossil Fuels Renewable Energy

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What (Fuels)

From Few To

Many

OIL

GAS

COAL

NUCLEA

R

HYDRO

WIND

SOLAR GEOTHERM

AL

BIOFUEL

SYNTHETI

C LIQUID

OCEAN

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What (Fuels)

The Transition Will Be

Slow

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Slow Transition to

Renewables?

Energy transitions take decades, if not

centuries

Large sunk investments in current system

Extensive and expensive new infrastructure

requirements

Persistence and adaptability of established prime

movers

Skilled labor

requirements

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Distributed Solar is

the exception to

the rule

14 April 29, 2013

Duncan/Webber

UT Austin

Page 15: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Technology Megatrend

More productivity from less material

“Accelerating

Ephemeralization”

– Fuller

“Law of

Accelerating

Returns” –

Kurzweil

“Moore’s Law” –

Moore

Page 16: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Nanotechnology and Energy

Low cost solar cells

Hydrogen production from water

Graphene

Solid state lighting

Super strong lightweight materials

Transmission lines

Energy Storage

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Technology Megatrend

More productivity from less motion –

Principle of Least Action

Pierre-Louis

Moreau de

Maupertuis

Leonhard Euler Gottfried Wilhelm

Leibniz

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Technology Megatrend

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Why (Workloads)

Electrification of

transportation system Computer loads

Robotics Electrification of industrial

processes

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Increase space used

Decentralization

Where (Location)

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When (Time)

Shifting the time of both energy conversion and

consumption is a game changer for utilities,

transportation and buildings

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Embedded Intelligence

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24 April 29, 2013

Duncan/Webber

UT Austin

Energy Megatrends

result in energy

efficiency and

automation

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Who (Decision-

makers)

Changing utility business models

The New Prosumer

Artificial Intelligence

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Sam Insull

Page 27: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Traditional Business Model

Centralized Power

Plants

Transmission and

Distribution

System

Volume Regulated

Monopoly

Page 28: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Centralized

power for

industry

Future Business Models

Services

vs.

Commodity

Broker of

distributed

power

Smaller,

discrete

companies

Energy

storage and

ancillary

service

companies

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Future Utility Business Models

Energy Service Utility

Smart Integrator

Page 30: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Power Quality protection

Broker of energy sales

Coordination and Integration

among multiple suppliers and

distributed generation

Future Role of Grid

Moving energy among storage

and demand

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The New Prosumer

We produce

more of what we

consume

Building owners

will be both

buyers and

sellers of

electricity

Dynamic pricing

will be key

Computer

interface will

develop as

“decision

maker”

Page 32: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Robotics and Energy

Manufacturing

Service Robots

Domestic Robots

Building construction

New energy loads

Ubiquitous sensing, computing,

automation

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SAM

Sentient Appearing Machines

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Energy Systems of the Far

Future

Multiple Energy Sources Ubiquitous Sensing

and Computing

Highly Integrated

between buildings,

transportation and

generation sources

Zero Carbon

Complex Prosumer

relationships

Sentient Appearing

buildings and

machines

Page 45: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Utility of the Future

Zero Energy Home

PHEV/BEV Distributed Utility

Fossil Fuels

Solar Wind

Nuclear

Page 46: THE FUTURE OF ELECTRICITY - McCombs School of Business/media/Files/MSB/...NATURAL GAS KEROSENE GASOLINE DIESEL Charles Parson s 1884 Nicolau s Otto 1876 Rudolp h Diesel 1893 John

Questions