EU 304 Environmental Management

Transcription

1 Erin F. Hazen Renewable Energy Business Development Manager University of Iowa 1 Forms of Generation Turbine Generators Solar Combined Heat and Power The Case for Self-Generation Cost Considerations Energy Use vs Demand Technology Selection: Questions to Ask Introduction to Renewable Energy Generation 2 Conversion of Solar Energy Common, economical means to generate electricity Energy resource is converted to a useful end product -that turns a turbine, -which rotates the generator to produce electricity. Turbine Generator Types: STEAM created in boiler by combustion of coal, gas, or biomass GAS/DIESEL combustion WIND HYDRO Chemical Energy (Coal, Gas, Biomass) Kinetic Energy Mechanical Power Electrical Energy 3 APPA Institute, New Orleans, January

2 Turbine Blade Cross-section Steam Turbine Generator LOW HIGH Wind Turbine Generator Gas-fired Turbine Generator 4 So what s going on inside the generator? A conductor is moved in a magnetic field & induces voltage Rotating Field: magnet is rotated around stationary conductive coil (armature) Rotating Armature: the conductive coil is rotated within stationary magnetic field (usu. limited to low-voltage generation) Copper is a highly efficient conductor due to molecular structure The voltage magnetic field pushes on & dislodges the free electrons Electricity = flow of electrons 5 Solar PV Direct conversion of solar irradiance into electricity PV panels contain silicon layers which carry a negative and positive charge Silicon molecules, like copper, are prone to losing electrons Photons from the sun dislodge electrons in the atoms from the negative layer Electron ping-pong game ensues Conductors embedded in panel collect the flowing electrons 6 APPA Institute, New Orleans, January

3 Video: What is District Energy? 7 Purchased Electricity from Grid Purchased Electricity from Grid Continuity of service despite grid outages Agile response to market conditions Time of Day and Seasonal pricing factors Rates vary by on-peak/off-peak periods, and summer/winter Demand Response/Curtailment Agreement Lower rates/rebates utility for curtailment (load reduction) Curtailment triggered by congestion, wholesale market price spikes, grid reliability concerns University of Iowa s 2015 rebate: $1,012,000 Base Load Generation vs. Peak Shaving Base Load: Continuous operation serving all or most of campus demand Peak Shaving: Rapid response generation offset load during high demand hours Energy Storage is another tool to achieve peak shaving system costs rapidly coming down 9 APPA Institute, New Orleans, January

4 Significant Cost Advantages Cost of Generation Purchased Electricity Rate Type cents/kwh Summer On Peak Rate Summer Off Peak Rate Winter On Peak Rate Winter Off Peak Rate Consider institutional priorities Utilities Cost Reduction Budget Stability Fixed Costs Construction & Regulatory Marginal Costs Fuel and O&M Energy Security Continuity of Services/Emergency Power Environmental Impacts University branding Research and Learning opportunities 11 Consider limitations Available Capital Regional Energy Resources Physical Space / Existing Infrastructure Permitting Regime Community Support Timeline, Scalability Staffing & In-house Expertise Bring in third party operators? Ohio State University plans to outsource utilities: 12 APPA Institute, New Orleans, January

5 Intrinsic environmental benefits Dramatic CoE reductions- some regions at grid parity Understand available incentives and market value of Renewable Energy Credits Seek partners with tax appetite for CAPEX reduction Forward curve projections of coal/gas prices: a flat PPA may be a great bet (or it may not.) What s your clout with your utility? Get them to do the heavy lifting 13 Increasingly cost-competitive vs fossil fuels Siting and the wind resource are critical Not a load-following generation source (usually) Technology choice matters greatly Not conducive to phased implementation- high mobilization costs Engage permitting experts Load-following (usually) Less picky about siting, easier to permit Economics (usually) depend on tax incentives Scalable; fairly easy to construct in phases PV Panels essentially commoditized, but supplier quality can vary 14 Goal: 40% Renewable by 2020, majority to be achieved by replacing coal with biomass Currently co-firing coal and NG with oat hulls, Miscanthus grass, and wood chips ~400 acres planted of Miscanthus. 12ft height at maturity, displaces ~4 tons of coal per planted acre Moving from R&D to commercial reality--currently developing cost-effective, diverse biomass supply chain Future fuels include short rotation woody crops, timber management output, and non-recyclable industrial by-products from Iowa businesses 15 APPA Institute, New Orleans, January

6 $5.2MM project for one 1.65MW Vestas turbine Serves 41% of campus load 15-year payback period Projected 4.3MWh annual production; actual 4.8 MWh Utility offers favorable net metering at retail rate Financing: $950k US DoE grant & $512k IL Clean Energy Community Foundation grant. College-issued bonds will be repaid with energy cost savings Annual expense $755k $420k (while other HCC campuses went up 40%-65%) 16 Comprehensive tally of available RE incentives by state Berkeley Lab RE publications Searchable database of NREL publications NREL s LCOE (Levelized Cost of Energy) calculator 17 Erin Hazen Renewable Energy Business Development Manager erin-hazen@uiowa.edu 18 APPA Institute, New Orleans, January

7 19 Price Power (KW) Power: The rate at which energy is supplied When power is being consumed, it s often called Demand or Load Unit of Measure: Kilowatt (KW) or Megawatt (MW) 20 Price Power (KW) Energy (KWh) 24-Hour period Energy: The amount of power delivered over time When energy s being consumed, it s often referred to as Usage Unit of Measure: Kilowatt-hour (KWh) or Megawatt-hour (MWh) 21 APPA Institute, New Orleans, January

8 Peak Demand: 652 KW Demand Charge $6.77/ KW Total:$4,414 Energy Charge: $/KWh for total Energy Use (entire blue area) On-peak Demand Charge: $/KW Charge that s based on your highest Demand (highest rate of energy consumption) during On-Peak hours 22 Demand charges are expensive for a reason Peak demand drives utilities to add new generation & transmission capacity NERC Reliability standards are based on grid capacity to handle 1-in-10-year peak demand Utilities would rather squeeze revenue from existing lines than be forced to build new 23 Begin cooling bldgs Classes in full swing Staff arrives Outdoor temps rising Fleet Mgmt plugs in the EV s for the night Evening classes wrap up Custodial, dorm lighting What changes might this facility take to reduce the electricity bill? Scheduling options Generation options Load-following Generation? Net metering? Energy storage? 24 APPA Institute, New Orleans, January

9 Prime Mover A device that imparts power or motion to another device Steam Turbine Generator In our context, the prime mover causes the rotation of the generator rotor. The turbine is the Prime Mover. Turbine Blade cross-section Wind Turbine Generator Gas-fired Turbine Generator LOW HIGH 25 Coal-fired Steam Boiler In this system, can you identify the: Energy Resource? Useful End Product? Prime Mover? Steam Turbine Generator Coal is the Energy Resource Steam is the End Product Turbine is Prime Mover 26 Research Turbine 2.4kW $40k funded by IAWIND grant to College of Engineering Solar EV 50kW Charging Station Produces 70MWh annually, $950k funded by coalition of state / federal grants and multiple UI budget centers. Thin Film Roof: 38kW array These facilities feature prominently in the university s branding efforts 27 APPA Institute, New Orleans, January

10 Efficiency how much of the primary energy stored in the fuel is converted to useful power? Natural Gas 32-38% Coal 39-47% Solar 18-20% Wind 35-55% CHP 80-85% Net Capacity Factor Ratio of actual output to its potential output if operating continuously at full capacity Most helpful to understand impact of intermittent resource on output Captures how many hours/year the facility can be expected to produce energy Solar PV NCF: 15-35% Varies by region. Tracking can add ~4%. Windpower NCF: 35-50% Highly site specific. Many options to boost NCF (tower height, blade length, turbine mfr.) 28 Forward Curve Pricing shows the market expectation of future commodity costs Good demonstration of the cost insecurity associated with fossil fuel generation, and overall price trends. But not absolute #s Don t bet the farm on them - especially vendor-supplied. Natural Gas predictions were drastically (&repeatedly) wrong- did not predict fracking tech advances and cost reductions NYMEX Henry Hub Monthly Futures Prices June 2008 December 2013 In 6/2008, the market predicted >$11/MMBtu by 12/2009 Actual in 12/2009 was <$5/MMBtu In 12/2009, new market prediction was ~$7/MMBtu by 12/2011. In 12/2011, actual <$4/MMBtu 29 Tax-exempt bonds for construction of facilities Short-term capital project notes Some deal structures common to wind/solar projects: Partnership flip of Project Company Partner with tax appetite owns 99% of project company until a defined trigger. Then ownership flips to University under defined FMV terms Sale-Leaseback Third-party PPA: Project Developer installs and owns the energy facilities on Host s site, offers a PPA to the Host. Synthetic PPA: a contract-for-differences. Off-site generation where University pays fixed PPA price Project owner sells energy on wholesale market ( merchant ) Settle difference based on price at agreed-upon index site Financial hedge, not a physical trade Bundle with RECs for green attributes 30 APPA Institute, New Orleans, January

11 Sale / Leaseback Third-Party Power Purchase Agreement 31 APPA Institute, New Orleans, January