Renewables. May 12, 2016

Transcription

1 Renewables May 12, 2016

2 World view Two renewable energy sources are already major energy sources. Hydropower currently provides about 16% of the world's electricity, which is greater than the percentage produced by nuclear power, and a far greater share than all other renewables combined. In fact, the largest power plant by capacity in the world, as well as four of the five largest power plants in the world are hydroelectric plants. However, most of the world's best sites for hydropower have already been developed, so global growth in new hydropower capacity is forecast to be slow. The second major source of renewable energy is traditional biomass, which accounts for twothirds of the renewable energy in the world. In developing countries, the overwhelming majority of the energy consumed is provided by fuel wood (often unsustainably sourced), which is generally the cheapest fuel option available. Fuel wood is the main energy source for cooking for most of the developing world, and is the primary source of energy for over 2 billion people. Wind and Solar energy has been the fastest growing renewable source in the last decade Japan leads the world in Solar U.S. is No. 2 but China will take the lead in the near future 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 2

3 What Drives Renewables American Recovery and Reinvestment Act of 2009 Single Largest Investment in Clean Energy Provided $90 billion in tax incentives to promote job creation and deployment of low-carbon technologies Since 2008, solar generation has increased over 30 times, wind generation has increased over 3 times. Cost of utility scale solar has fallen by 60%. Battery cost for EV fell from $1,000/kwh to under $300/kwh in 2014 State Mandates for Renewable Portfolio Standards (RPS) Examples: Oregon just passed a bill to increase their state to 50% RPS by 2040, Require PGE to be coal-free by 2030 New York and California has increased mandate to 50% RPS by 2030 Vermont 75% RPS by 2032 Hawaii 100% by /00/2015 TITRE DE LA PRESENTATION ( MENU "INSERTION / EN-TETE ET PIED DE PAGE") 3

4 Juwi Solar Installation 25 MW Queens Creek, AZ 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 4

5 Harvard Athletic Building 600 Kw Array 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 5

6 What makes solar work? High Retail Rates Solar Irradiance Incentives Declining Installed Costs 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 6

7 Federal and State Incentives makes Solar Work 30% Investment Tax Credit MACRS Accelerated Depreciation, Solar facilities are generally classified as five-year property plus a bonus depreciation if Production in Service prior to MACRS + bonus depreciation equals to 60% in year 1 State Incentives MA, NJ, MD, DC SREC based on MWh of production NY NYSERDA block, based on size and region, Net Metering available up to 2 MW Community Solar 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 7

8 Incremental value drivers beyond PPA price. Solar generally reduces on-peak consumption at a facility typically the most expensive market power. Flatter load profile may yield beneficial costs for the balance of electricity needs. In Capacity based markets (NYISO, ISONE, PJM) and Transmission based markets (PJM) the facility s capacity or transmission obligation is set during summer on-peak hours. Depending on the size of the system, there is potential to lower capacity and transmission obligation and hence costs for the balance of electricity needs. Obligations are determined based on ISO coincident peak and not facilities absolute peak. In a similar fashion, many utility delivery charges are demand based. Depending on the regime, reductions in measure peak demand can reduce delivery charges for the balance of electricity needs. Can be augmented with Demand Response, Utility Demand Management and 4CP/1CP services which also impact capacity/transmission obligations. Battery Storage technology can also be used to shift/smooth peak demand to manage demand based charges. 8

9 Commitment to the Environment - Corporate Responsibility 1. Reduce Emissions GHG reduction, in 2012 companies have decreased its approximately 60 million metric tons of CO2 comparable to retiring 15 coal plants 2. Energy Efficiency Dell expects to save $1.1 Billion annually LED Lighting, HVAC Retrofit, LEED Certified Buildings, Smart Thermostats 3. Renewable Energy Walmart, Apple, Procter and Gamble have long-term commitments for 100% powered by renewable energy 4. Many claim that they are moving to 100% renewable energy resources by using a combination of wind, solar, battery, etc.. The problem with renewable energy is that it is an intermittent source. Need for base load, many argue that the source for base load needs to be natural gas, natural gas is not a renewable resource but a clean source. 00/00/2015 TITRE DE LA PRESENTATION ( MENU "INSERTION / EN-TETE ET PIED DE PAGE") 9

10 Commitment to Environment in the Gas Pipeline Industry Protection of Water Supply by utilizing horizontal directional drilling, high strength carbon steel, corrosion-resistant fusion-bonded epoxy coating, automated shut-off valves placed at water crossing and areas of higher consequence. Protection of Wildlife Habitat in compliance with the Endangered Species Act GHG emissions associated with shipping oil by rail, barge, and truck are significantly great than pipeline Upgrades and modernization in technology, emission reduction, LED lighting that are 7-10X more efficient and last 40 times longer than regular light bulbs Recycling and reduction of paper use 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 10

11 Commitment to the Environment - Corporate Responsibility 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 11

12 Many of the early commercial adopters are familiar names. Walmart Kohls Costco Apple IKEA Macys Johnson & Johnson Target McGraw Hill Staples Campbells Soup US Foods Bed Bath & Beyond Volkswagen Kaiser Permanente Safeway FedEx Intel L'Oreal General Motors Toys R' Us Verizon White Rose Foods AT&T Toyota Top 25 by Capacity (MW) /00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 12

13 kwh What does that look like in the context of the facility? 180,000 Annual Consumption Profile 160, , , ,000 80,000 60,000 40,000 20,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Consumption Solar Production Net Consumption So this yields approximately 30% offset of annual consumption. Solar production is highest during the peak hours of the day. We estimate on average 5-6 hours of sunlight per day, this creates a 15% capacity factor 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 13

14 HelioScope Report 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 14

15 Layout and Design 00/00/2015 PRESENTATION TITLE ( FOOTER CAN BE PERSONALIZED AS FOLLOW: INSERT / HEADER AND FOOTER") 15

16 Opportunity for Renewable Energy 1,400 Compressor Station on Natural Gas Pipeline Transmission in the U.S. Waste Heat to Power (WHP) No added Fuel, No Greenhouse gas emissions, No other pollution Qualifies as an renewable resource in 17 states including Colorado, New Mexico, Nebraska, and Wyoming WHP is non- intermittent, base load power Compressor Stations operate at 33 percent efficiency, 2/3 of the fuel is wasted heat. The wasted heat is captured much like geothermal energy and converted into electricity. The expansion of this gas drives a small turbine generator to make electricity The pipeline company converts waste gas, turns it into electricity, signs a PPA and sells the electricity to the local electric-coop WHP is installed at over 12 compressor stations, average size is 5 MW Criteria for WHP Installation: At least 15,000 hp gas turbine station capacity and operates a least 5,250 hours per year (at least 60% of capacity) 00/00/2015 TITRE DE LA PRESENTATION ( MENU "INSERTION / EN-TETE ET PIED DE PAGE") 16

17 Trailblazer Pipeline 3.5 MW Waste Heat to Power 436-mile Trailblazer natural gas pipeline winds through parts of Wyoming, Colorado, and Nebraska. One of the compressor station is located in the service territory of Highline Electric Association in Peetz, Colorado, determined that rather than letting the heat exhaust be vented into the atmosphere, they decided to recycle that waste heat and turn it into renewable power. Savings of over $10 million over 20 years, no emissions or environmental impact, and qualifies as a renewable energy source for Colorado s RPS. Max Capacity 4.5 MW, capacity factor approximately 70%. Energy Output = 27,600 MWh per year Environmental Benefit 27,600 tons of CO2, 34,500 kg of NOX, and 124, 500 kg SO2 saved each year System was owned and build by Ormat, Highline Electric Association buys the electric output through a 20 year PPA, Tri-State provided the financing, Kinder Morgan owns Trailblazer received a payment from Ormat for use of its waste heat. 00/00/2015 TITRE DE LA PRESENTATION ( MENU "INSERTION / EN-TETE ET PIED DE PAGE") 17