Participation of the Business Sector in Puerto Rico to Support Renewable Efforts

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1 Participation of the Business Sector in Puerto Rico to Support Renewable Efforts Dr. Albith Colón PE, CEM,CDSM,GBE. Association Of Energy Engineers Green Building Council International Solar Energy Society National Energy Rater s Association

2 The Manufacturing Industry has a great challenge in the Energy field in Puerto Rico so that it can contribute to making our products and services more competitive in the global market William Riefkohl PRMA

3 Realities that we need to consider Annual Growth in Energy Use Is projected to continue net energy delivered to consumers represents only apart of total primary energy consumption. The growth in electricity use for applications such as space conditioning, consumer appliances, telecommunication equipment, industrial machinery, and office equipment has resulted in greater divergence between primary and delivered energy consumption The average home in 2025 is expected to be 6 percent larger (1,788 square feet in 2025 versus 1,689 square feet in 2002) and to use electricity more intensively.

4 Residential Sector Energy Demand Residential energy use is projected to increase by 25 percent between 2002 and 2025 (10 percent by 2010). Newly built homes today are, on average, 26 percent larger than the existing housing, with correspondingly greater needs for cooling and lighting. Further reductions in residential energy use per square foot could result from additional gains in equipment efficiency and more stringent building codes, requiring more insulation, better windows, and more efficient building designs.

5 Electricity Share of Commercial Energy Use Is Expected to Increase Commercial energy use, including electricity-related losses, is projected to grow by 1.7 percent per year between 2002 and Energy consumption per square foot is projected to show little increase, with efficiency standards, voluntary government programs aimed at improving efficiency, and other technology improvements expected to balance the effects of a projected increase in demand for electricity-based services.

6 Energy Assessment Electrical Supply System HVAC & Refrigeration Boiler & Steam Motors Compressed Air Insulation Lighting Process Equipments Hot Water Water Conservation Automation

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8 Distributed Generation and Combined Heat Power An energy production system that is close to the load. It does not require the use of the utility system to deliver the electricity to the consumer s meter It may inject into the utility system. The customer may choose to maintain an interconnection for supplemental and backup power.

9 Distributed Generation and Combined Heat Power Distributed Generation- power generation at or very close to the load needed It can reduce or eliminate dependence on the national electricity grid and its related costs and reliability DG on site power, where the generation of electrical power is specifically designed to meet the requirements of the host facility It often uses cogeneration to produce high quality heat along with the electric power.

10 Distributed Generation and Combined Heat Power A term that applies to a variety of technologies that produce electric power in small, factory-assembled packages, often designed to operate under a near-continuous duty cycle. These technologies are classified as - conventionally- fueled devices. - renewable source For highest efficiency, DG technologies usually operate in cogeneration or combined heat and power mode.

11 Distributed Generation and Combined Heat Power Benefits Grid or System Side Cost Effective sources of new peak demand power Diversification of supply side primary energy resources Deferral of new transmission and distribution (T&D) capital investment Elimination or reduction in T&D electrical line losses Voltage support for the distribution system

12 Distributed Generation and Combined Heat Power Benefits Customer or End-Use Side Lower cost of electrical energy and power on-site production or use of net metering Reduced peak demand charges Effective solutions for emergency or standby power. Reduced operating costs for facilities that can benefit from CHP applications

13 Distributed Generation and Combined Heat Power Distributed Generation is modular electric generation or storage located near the point of use. Distributed Generation is on site generation Synonyms are: -distributed power -distributed energy -distributed energy resources -distributed resources

14 Distributed Generation and Combined Heat Power Characteristics Generates or stores electrical energy Located near or at load centers Can be grid connected or isolated May involve cogeneration or combined heat and power Has value greater than grid connected power including: Costumer Value-including cogeneration or CHP Distribution benefits Backup or emergency power Social or environmental value

15 Distributed Generation and Combined Heat Power Micro Application Could include only small-scale environmentally friendly technologies that are installed on and designed on and designed primarily to serve a single end user s site. Photovoltaics (PV) Fuel cells, Microturbines, Small wind turbines Hydrogeneration

16 Renewable Energy sources: Distributed Generation or Modular Generation Solar Wind Geothermal Water (Hydroelectric) The Ocean (Thermal and Mechanical) Fuel Cells (Natural Gas, Hydrogen) Bio-energy

17 Distributed Generation and Combined Heat Power Technologies: Biomass-based generators Combustion turbines Gas turbines microturbines and miniturbines Steam turbines Concentrating solar power & photovoltaic systems Fuel cells Wind turbines Engines/generator sets

18 Distributed Generation and Combined Heat Power Technologies: Energy storage devices Batteries Flywheels Superconductors Ultracapacitors

19 Distributed Generation and Combined Heat Power Applications : Continuous customer generation applications produce power on a nearly continuous basis, running at least 6000 hours per year. The cost of competing grid power and energy, as well as the installed cost of the DG units and fuel costs, must be part of the implantation decision. Maintenance costs, power quality, and reliability of grid power are also important considerations.

20 Applications : Distributed Generation and Combined Heat Power Distributed Resources can be used to provide on-site standby power for customers that require uninterrupted electric service 24 hours a day, 7 days a week. Customer that maintain distributed power system for backup power may also be able to lower the cost of their power purchases by participant in peak load reduction programs offered by utilities.

21 Distributed Generation and Combined Heat Power Peak Shaving Power costs vary hourly depending upon system demand and the availability of generation assets. Larger customers often pay time-of-use(tou) rates that convert these cost variations into daily and seasonal rate categories- such as on-peak, and shoulder rates. TOU customers and those competitively acquiring power could select DG during high-cost peak periods, and reduce their overall cost of power. The electric supplier in turn may be able to reduce the amount of high cost power purchased during system peak

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23 Distributed Generation and Combined Heat Power Combined Heat and Power (Cogeneration) In the process of converting fuel into electricity, a large amount of heat is created ( on average 2/3 of energy content of the fuel). Customer can utilize this heat if the power generation system is located on-site or near the customer s facility. By using CHP, customers can increase efficiency, lower greenhouse gas emissions, and power costs.

24 Distributed Generation and Combined Heat Power Combined Heat and Power (Cogeneration) Is the best suited for mid to high thermal use customers. Process industries Hospitals Prisons Health clubs Laundries It may also be cost effective for: Hotels and motels Dormitories Restaurants Swimming facilities Other small thermal use customers

25 Pelamis machines with a combined output of 3MW UK's First Wave Farm

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28 Bristol-Myers Squibb 79 kw ac on-grid Bristol-Myers Squibb, Hopewell NJ Completed 2003

29 Pentagon 30kW AC on-grid US Department of Energy Pentagon City, VA Completed 1998 Utility-tie - # 29

30 Massachusetts Institute of Technology 9 kw ac ongrid MIT, Boston, MA Completed 2003

31 City of Riverside Solar Carport 150 kw AC on-grid City of Riverside Riverside, CA Completed Oct Utility-tie - # 31

32 Germany, 300kw

33 Europa Park, Germany 300Kw pk

34 New Port, Rhode Island Portsmouth Abbey School 660 KW Vestas 1200 Mwh/yr

35 Boston, Massachusetts Local 103 IBW AFL-CIO

36 Pentagon Department Pfizer Pharmaceutical, of Inc. Defense 123kW

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39 Puerto Rico Energy Sources Eco-Eléctrica and AES generate approximately 32% of total power required using natural gas and coal. 15% Natural Gas, 17% Coal, 68% Petroleum 99% Fossil Fuel. Price Average by Kw-hr: cents

40 Coal - 56 % Energy Sources in USA Nuclear - 20% Hydroelectric - 12% Natural Gas - 9% Petroleum - 3 % Price Average by Kw-hora: 6.86 cents

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42 Distributed Generation and Combined Heat Power Benefit Remote/Stand-Alone Generation In isolated or remote locations, stand alone DG may the only source of electrical power, or it may be more economic than integrating with the power grid. DG can eliminate: The cost of connecting to the grid The costs incurred from problems associated with being at the end of a long T&D line- power outages and lower quality. Some CHP system owners disconnect from the grid when they are unable to negotiate economic backup power from their retail electric supplier.

43 Distributed Generation and Combined Heat Power Facility s Energy Needs When DG Might help My Facility High cost for electric energy and fuel Uncertain fuel supplies Increased disruption in electric service Replacement of aging equipment Need for energy security Power for mission-critical loads Diversity electric supply sources

44 Solar Power and Zero Energy Pardee had been working with a company called Astro Power now part of General Electric (GE) and continued this relationship as development started on a house in Las Vegas. They were trying to achieve a virtual zero-energy home after the DOE launched its Zero Energy Home (ZEH) program that works with builders to achieve a 50% savings on the average energy bill. It also seeks, over time, to get to zero electricity usage. This is an objective program in stages. In 2003, Pardee Homes began construction on a house to be showcased at the January 2004 National Homebuilders Show in Las Vegas. Pardee collaborated with the DOE in designing a house that would achieve a 90% savings on energy costs including gas and electricity. The goal was to get to zero electricity usage. "We are currently testing that house," says Mason. "And we will continue testing for a two-year period. We will then see if our design goals were met. "Natural gas was kept in that home because most people still like to cook with gas and the HVAC system still uses gas, mainly because those are still very energy-efficient technologies. We just didn't feel we could do any better using an alternative form of energy. Pardee did do some things though, like using a solar hot-water heater on the roof. The house had an 8.6-kilowatt system, partly on the roof and partly on a patio trellis system, so both were used.

45 Montehiedra, Guaynabo 2,520 Watts Pk

46 Quintas del Rio, Bayamón 3500 Watts Pk

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48 Megawatts 36,000 30,000 24,000 18,000 12,000 6, Renewable Energy Expected From State Standards and Funds* New renewable energy supported: - 25,900 MW by 2017 CO 2 reductions: 65.2 MMTCO 2 E Equivalent to: billion more trees million less cars *Projected development assuming states achieve annual RES targets. **Includes Delaware, Hawaii, Illinois, Montana, Ohio, Oregon, and Washington D.C. Other** California Nevada AZ & NM Colorado Texas Minnesota IA & WI Maryland Pennsylvania New Jersey New York CT & RI MA Maine

49 42,000 36,000 New renewable energy supported: - 32,000 MW by 2017 Effect of RPS Hawaii California Megawatts 30,000 24,000 18,000 12,000 6, *Assumes regulatory enforcement of voluntary RES Nevada AZ & NM CO & MT Texas Minnesota IA & WI Illinois* Maryland Pennsylvania DC & DE New Jersey New York CT & RI MA Maine

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56 Canary Islands

57 Canary Islands

58 Canary Island

59 Cost Per Kilowatt-Hour Of Green Power Technologies Technology Cost per kwh BioPower Plant 5-9 Geothermal Plant 5-8 Solar Concentrating Power Plant 9-12 Wind Power Plant 3-5 Source: US Department Of Energy

60 Green Energy

61 Green Energy

62 Green Energy

63 Green Energy

64 Green Energy

65 Green Energy

66 Project Development Operations Construction Financing and Closing Development Feasibility Resource Assessment Concept Development

67 Green Energy

68 References Solar Energy International. (2004d). Photovoltaic Design and Installation Manual. National Library of Canada: New Society Publisher. Americans for Solar Power. Solar electric photovoltaic. Extraído octubre 10, US Department of Energy. (2005a). Energy Policy Act Subtitle C - Renewable Energy. PL

69 Thank You!

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