Advanced Solar Thermal (AST) SOLID Energy, Inc.

Transcription

1 Advanced Solar Thermal (AST) 1

2 What is AST AST includes Mechanical Systems that use Solar Thermal Energy for the Following Type of On-Site Customer Loads: 1. Space Cooling 2. Space Heating 3. Process Heating or Cooling 4. District Heating, Cooling, and/or Hot Water 5. Domestic Hot Water as a By-Product or Large Stand-Alone Domestic Hot Water Systems (over 1,500 feet of collector area) 2

3 Distinctions from Traditional Solar Thermal Provides much more than Domestic Hot Water Utilizes special solar collectors to produce medium to high temperture water. Provides Heating and Cooling Options Collectors Allow for Large DHW Systems Individually Engineered Turnkey Systems O&M Provided (Normally includes Telemonitoring) Commercial Quality Longer Paybacks 3

4 Where AST Systems are Installed Federal, State, and Local Government Buildings Universities & Research Institutes Prisons Schools Hospitals Hotels Apartment Complexes Dormitories Office Buildings Large Pools or Pools Combined with Buildings Industrial Applications Requiring Hot Water, Heating or Cooling Entities Seeking LEED Certification 4

5 How AST Works Heating Coils Cooling Coils Two W.F. Abs. Chillers W.C. Elect. Chiller Cooling Tower Solar Array 6,912 Sq. Ft. NG-Fired Boiler 5,000 Gallon Thermal Storage Tank DOMESTIC HOT WATER BUILDING SPACE HEATING BUILDING SPACE COOLING DISTRICT HEATING DISTRICT COOLING PROCESS HEATING PROCESS COOLING POOL HEATING COMBINED HEATING AND COOLING Solar Heating Circuit Building Chilled Water Circuit Building Heating Circuit Pool Heating/Condenser Cooling Circuit SOLID Energy, Inc Constant Speed Pump Variable Speed Pump Valve 3-way Valve Check Valve W.F. W.C. Abs. Water-Fired Water-Cooled Absorption Elect. NG Aux. Electric Natural Gas Auxiliary 5

6 Collector Types Used for AST Flat Plate Parabolic Trough Evacuated Tube

7 Benefits On-Site Solar Energy that Offsets Electricity and/or Natural Gas (Transmission & Distribution Benefits) Further Utilizes the Tremendous California Solar Resource Firm (Includes Storage as Hot or Chilled Water) Cost Effective Available for Small Commercial to Very Large Industrial Systems (Expected to be Available for Residential in 2-3 Years) Easy Operation and Maintenance Cooling Shaves Electric Peak Significant CO2 Reduction Possibilities 7

8 Cooling Significance Demand (GW) 50 California 2003 Summer Peak-Day Load Residual (Other Area) Res. - Air Conditioning Com. - Air Conditioning Com. - Interior Lighting Res. - Miscellaneous Com. - Other Res. - Refrigerator Com. - Ventilation Res. - Cooking Res. - Clothes Dryer Com. - Refrigeration Remainder of Com & Res Industrial Sector TCU, Agr & Other Sectors Time of Day (hour starting) System Peak Source: CEC Hourly Electric Load Model 8

9 CO2 Reductions from AST- EU Projected CO2 emissions reductions (Million tonnes) Wind 236 Photovoltaic 24 Solar Thermal 92 Biomass 326 Hydro 35 Geothermal 15 TOTAL 728 (20% Renewables by 2020) [17.3% of total EU 15 GHG (Greenhouse Gases) emissions in 1990] Cumulative investment 443 (in Billion Euros) Cumulative avoided costs (External+fuels) Source: EREC,

10 NREL CA Study* California Solar Hot Water in Residential and Commercial Buildings (Trillion BTU/Billion kwh) Fuel Used for Heating Water Natural Gas Oil + LPG Electricity Res. Comm. Res. Comm. Res. Comm / 4 6 / 2 Estimated Savings from SHW Natural Gas Oil + LPG Electricity / 2.3 Technical CO2 Emissions Reduction (MMTCO2e) Natural Gas Oil + LPG Electricity / / 8.6 *Technical Report NREL/TP March

11 Additional CA CO2 Reductions Estimates Range from additional MMTCO2e (Industry is in the process of better quantifying this number.) 11

12 AST Economics DHW Example Federal Correctional Institute, Phoenix, AZ Solar Domestic Hot Water System Installed 1998 Data from DOE Case Study Sept, 2004 System provides 70% of hot water needs for 1250 inmates including showers, laundry,kitchen 17,040 square feet of solar collector area System displaces 600 ton of CO2 per year This system displaces electricity. Most solar DHW systems in CA will displace natural gas. Update of costs to 2007 and assuming relocation of the system to a location in southern CA, displacement of natural gas and technology Improvements since 1998: System Cost: $1,000,000 Annual Savings: $58,000 Simple Payback; 17.2 Years (No Incentives) System displaces 337 tons of CO2 per year 12

13 AST Economics Cooling Example MODEL SOLAR COOLING SYSTEM 100 TON SYSTEM SAN DIEGO, CA COMPILATION OF INDUSTRY DATA System Cost Including Design, Hardware and Installation - $ 1,000,000 Per Unit Cost - $100 per Sq. Ft./$10,000 per ton 25 Year Life of System Energy Displacement 6,212,500 kwh Equivalent Energy Rate - 16 cents Assumed Electric Rate 15 cents per kwh Typical system design would meet 50% to 70% of the building s cooling load 10,000 square feet of solar collector area Displaces 176 tons of CO2 per year Assuming a COP of 2.0 and adequate thermal storage, the system would reduce peak load by 176 kw Maintenance costs are equal to or less than a non-solar cooling system Commercial systems can be as small as 10 ton, but fixed costs will extend payback period First Year Savings - $37,275 Simple Payback 26.8 Years (No Incentives) Economy of scale a factor with per unit costs declining as system size increases 13

14 Existing Worldwide Solar Thermal INSTALLED CAPACITY GIGAWATTS PV WIND SOLAR THERMAL 14

15 Current Capacity by Country 25,000 20,000 15,000 10,000 5,000 0 China Japan Turkey Isreal Germany Greece Austria United States Source: European Renewable Energy Council Australia France Spain 15

16 New Focus on AST & Solar Thermal European Union (EU) Target for all Renewables is 20% by 2020 Projection is that Solar Thermal (and Biomass) Heating and Cooling Alone can meet 25% of the Larger Target EU Solar Thermal Market Currently Growing at Rate of 12% (Source: European Union Renewable Energy Council) The EU has Recently Adopted Incentives for Solar Thermal Heating and Cooling to Increase Solar Thermal Growth New International Energy Agency Programs are in Place to Further Increase Cost Effectiveness of the Technology Asia is Rapidly Developing the Technology The U.S. can have Similar Programs and Successes 16

17 EU Solar Thermal In the EU, 12million m2 of solar thermal collectors supply 4900 GWh of heat each and every year. By consistently developing this potential, this figure could rise to 680,000 GWh by the year This amount of energy equates to 6% of the EU s current energy demand.

18 EU Solar Cooling To date, about 100 solar cooling and air-conditioning (A/C) systems have been installed in Europe. (5-10 in the U.S.) Their specific collector area is ~3 m2/kw for water chillers, or 10m2 per 1000 m3/h of air volume flow in desiccant systems. Their primary energy savings potential is between 20-70% of on-site electric compressor consumption. Pay-back period of 6 years to over 20 years at today s energy prices. Most of the systems so far have been installed in Germany, Spain and Greece. Source: European Renewable Energy Council (EREC),

19 The CA Solar Resource The U.S., especially the West, has a tremendous solar resource. 19

20 The U.S. Has Begun Arizona Corporation Commission has Included AST in its List of Technologies Arizona Public Service has Instituted a PBI for AST Solar Thermal and Tucson Electric Company is in the Process of the Same Two Cooling and Heating Projects have been built in Arizona with others underway A Handful of Other States and Entities have Added Solar Thermal to Programs or Definitions and Others are Considering this Technology The Western Governors Association Supports Incentivizing AST 20

21 California CPUC has directed solar thermal that displaces electricity to the CSI and solar thermal that displaces natural gas to SGIP. Companies in/expected to Enter the California Market: SOLID Energy Sun Chiller (Sunda) Industrial Solar Technologies/Solucar Solargenix Enerworks Heliodynamics Solel Capital Sun Systems Johnson Controls Conergy 21

22 AST Barriers AST Technology = On the shelf technology - EU & Asia no barriers as AST is not rocket science - US limited chiller models due to miniscule market - In the past technology was not attractive - BTU meters (95 to 98% accurate) Financial - Standard renewable fuel- Purchase fuel up-front - Interest in financial community - Focus is on new state of art technology not commercially available technology Thermal brand issues due to program design - Unattractive and bad actors in early 80 s

23 CA Regulatory Barriers for AST Program Design - Faulty Program Design in early 1980 s resulted in significant thermal brand issues CA s policy focus has been on electricity not natural gas Legislative: - Emphasis on electricity (SB 1) - Ratepayer class (should residential pay?) Regulatory: - 2 For Issue saves both electricity and natural gas - AST not on radar screen - CA RPS renewable eligibility / electricity focus

24 Status of AST in CA CSI Non-PV Draft Handbook - Includes Solar Thermal AC, limited to electric displacement (not natural gas). Proposed PA handbook values energy improperly. Self-Generation Incentive Program (SGIP) - PUC CSI Decision directed gas saving DG to apply to SGIP program

25 CA Solutions for AST Combine AST into SGIP? - Advantage of combining ratepayer incentives with private customer investment - PUC has authority to include DG technologies that displace both natural gas and electricity - Develop proper handbook Tax treatment - State property tax exemption - Federal tax incentives

26 Proper Program Design Essential Proposed SGIP Program Design (Similar to Arizona) - Five-year incentive contracts for both gas & electric displacement - Performance Based Incentives (PBI) based on metered output, not displacement (x cents per kwh for cooling systems and x cents per kwh equivalent for heating/hot water systems) - Separate Requirements for Residential and Commercial Systems Transparent program & utility system data for reasoned analysis and program adjustment

27 Huge Possibilities for CA Solar Steam Generation Project Being Funded by CEC Frito Lay, Modesto, California (Customer) California Energy Commission (Project Sponsor) American Energy Assets (General Contractor) Solucar Inc. (Solar Equipment Supplier) Project Status Application 300 psig steam generation at 422 F Steam used to heat vegetable oil to 375 F Hot oil used to fry potato and corn chips Solar Technology 54,000 sq ft of parabolic trough collectors Operating temperature up to 480 F, 600 psig Peak energy delivery 8.6 million Btu/hr (2.5 MW thermal) Land area 4 acres Project Schedule July 2007, Permits August 2007 September 2007, Installation October 2007, Operational

28 Additional Examples