2012 Indiana Renewable Resources Study

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1 2012 Indiana Renewable Resources Study Presented by: Douglas J. Gotham, Director State Utility Forecasting Group Purdue University Presented to: Regulatory Flexibility Committee Indiana General Assembly September 6, 2012

2 Renewables Share of U.S. Energy Consumption Hydroelectric Geothermal Solar Wind Wood Waste biomass Biofuels Total renewable ion Btu Quadrilli Source: Energy Information Administration (EIA) 2

3 Renewables Share of Indiana Energy Consumption Hydroelectric Wood & waste Fuel ethanol and coproducts Geothermal Solar Wind Total renewables 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Source: EIA 3

4 2011 US U.S. Electricity it Generation by Energy Source Petroleum 1% Natural Gas 25% Nuclear 19% Pumped Storage -1% Hydro 60% Renewables 10% Wood 9% Geothermal 4% waste 4% Solar 0.3% Coal 42% Wind 22% Source: EIA 4

5 Renewables Share of Indiana Electricity c Generatione Hydroelectric Other renewables Total renewables 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Source: EIA 5

6 Barriers to Renewables Major barrier is cost Most renewable technologies have high capital costs According to EIA Indiana s average electric rate in 2010 was 7.67 cents/kwh vs. the national average of 9.83 cents/kwh Limited availability for some resources Solar/photovoltaics, hydropower Intermittency for some resources Solar/photovoltaics, wind 6

7 Capital Costs for Various Generation e Sources Overnight Capital Cost (2010 $/kw) Conventional Hydropower Municipal solid waste Geothermal Photovoltaic (large (150 MW)) Photovoltaic (small (7 MW)) Solar Thermal Wind (onshore) Biomass (bubbling fluidized bed) Biomass (combined cycle) Nuclear Advanced combustion turbine Conventional combustion turbine Advanced natural gas combined cycle Conventional natural gas combined cycle Advanced pulverized coal , ,078 2,438 2,844 4,141 4,755 4,692 3,860 5,339 6,050 8,232 7, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Data source: EIA 7

8 Wind Annual capacity installed Cumulative capacity MW

9 Transportation fuels Ethanol Biodiesel Other possibilities Energy Crops Fast growing hardwood trees (hybrid poplar/willow) Grasses (switchgrass) Barriers to be overcome Other high-value uses for the land Price of competing fossil fuels Harvesting and transportation costs 9

10 Organic Waste Biomass Until the recent increase in ethanol production, this resource was the largest source of renewable energy in Indiana Primarily due to the use of wood waste It is the 3 rd largest source of renewable electricity generation in the state Landfill gas Municipal solid waste Animal waste biogas Wastewater treatment 10

11 Solar Energy Annual Installed capacity Cumulative capacity kilow watts 4,000 3,500 3,000 2,500 2,000 1,500 2,683 3,530 1, Photovoltaic capacity in Indiana Source: National Renewable Energy Laboratory 11

12 Photovoltaics Growing rapidly in Indiana, but still a small contributor overall 188 installations totaling over 3.5 MW of capacity Fort Harrison Federal Compound Metal Pro Roofing Johnson Melloh 10 MW project proposed at Indianapolis 10 MW project proposed at Indianapolis airport 12

13 Hydroelectric Power Indiana has 73 MW of hydroelectric generating g capacity. mostly run-of-the-river (no dam) 2 nd largest source of renewable electricity American Municipal Power is constructing an 84 MW facility at the Cannelton Locks on the Ohio River expected to be operational in

14 Further Information State Utility Forecasting Group purdue edu/discoverypark/energy/sufg/ Douglas Gotham