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John Lushetsky | The DOE Solar Program
 

John Lushetsky | The DOE Solar Program

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John Lushetsky | The DOE Solar Program John Lushetsky | The DOE Solar Program Presentation Transcript

  • DOE Solar Energy Technologies Program Accelerating the U.S. Solar Industry Solar Energy: A Solution to Energy and Environmental Problems? George Washington University Washington, DC April 24, 2009 John Lushetsky Acting Deputy Assistant Secretary Energy Efficiency Department of Energy Office of Energy Efficiency and Renewable Energy
  • U.S. Department of Energy Budget Breakdown U.S. Department of Energy Annual Budget: $27 Billion (FY09) Energy Efficiency, Renewable Energy (EERE) Annual Budget: $1.9 Billion (FY09) 10 Programs Energy Efficiency Building Technologies Weatherization & Intergovernmental Industrial Technologies Federal Energy Management Vehicles Solar Energy Technologies Program (SETP) Annual Budget: $175 Million (FY09) ~20 Staff (incl. contractors) Renewable Energy Wind & Hydropower Biomass Geothermal Hydrogen, Fuel Cells & Infrastructure and ….
  • The SETP is executing four critical sub-program to reduce solar technology cost and achieve high penetration Photovoltaics (PV) Concentrating Solar Power (CSP) DOE SETP Market Transformation Grid Integration Distributed Generation - on-site or near point of use - Centralized Generation - large users or utilities -
  • Funding for the SETP has been increased in response to the Solar America Initiative
  • FY09 Projected Solar Budget By Technology By Recipient By Term
  • NREL and SNL provide a strong base for solar development partnerships with industry
    • Over 200 scientists and engineers with deep understanding of all solar technologies
    • Areas of expertise
      • Crystalline silicon and thin-film PV
      • Flat-plate and concentrator PV
      • Process development and engineering
      • System development and testing
      • Measurement and characterization
      • Reliability engineering
      • Next-generation PV technologies
      • CSP components and testing
      • Grid integration and power electronics
      • Policy, market, and financial analysis
    • Collaboration Types
      • Cooperative R&D Agreements (CRADA)
      • Work-for-Others
      • Technical Service Agreements
      • Technology Licensing
  • The SETP is focused on enabling high penetration of solar energy technologies and achieving grid parity by 2015
  • DOE’s Solar Energy Technologies Program (SETP) works along the whole RD&D pipeline
  • The SETP is a critical part of the total funding available for solar technologies
    • Preferential access to national labs
    • Fostering support for solar within large companies
    • Legitimizing young companies and new technology
    • Non-dilutive to company financing; minimal IP requirements
    DOE Funding Advantages
  • Challenges: Photovoltaics
    • Continue to drive down costs and develop sufficient product diversity to address and maximize all market segments
    • Ensure adequate supply chain for a large and rapidly growing industry
    • Continue to provide reliable products with 30 yr lifetimes (both actual and perceived)
  • DOE’s industry R&D programs include diverse technologies for potentially diverse PV markets
    • Technology Pathway Partnerships focus on minimizing total system cost
    • Incubator program focuses on scaling up innovative new solar technologies
  • DOE’s Next Generation PV seeds the beginning of the pipeline with high risk/ high payoff projects
  • Challenges: Concentrating Solar Power
    • Cost reductions and efficiency improvements must be achieved
      • Increase mirror reflectivity and durability
      • Increase receiver absorption
      • Identify lower freezing-point chemical solutions for heat storage
      • Increase heat storage beyond 7 hours
      • Grow the supply chain for advanced components
      • Develop innovative CSP systems for lower cost and operation in wider areas
    • Identify the appropriate land areas for construction and ensure environmental impacts are minimized
    • Develop a streamlined federal land application process
  • Addressing CSP Barriers
    • Concentrating Solar Power Components
      • Supports companies to develop storage solutions, manufacturing approaches, and new system concepts for large-scale CSP plants
    • Advanced High Temperature Storage
      • Supports long-term research activities and near-term demonstration in developing advanced heat transfer fluids and novel thermal storage concepts
    • Partnering with BLM on the Solar Programmatic Environmental Impact Statement to accelerate access to BLM land
  • DOE funds CSP Industry R&D to reduce system costs Slide
  • Renewable Energy Zones (REZ)
    • Concentrated development area to lower infrastructure costs
      • One-time infrastructure build-out for multiple development projects within the zone
      • Enhanced collaboration with key partners
        • State energy offices
        • Power marketing administrations
        • Power purchasers
        • Local utilities
    • Better electrical transmission and environmental planning
      • Single environmental impact study for entire site
      • Transmission sized to meet 100% development of REZ
        • Cost of transmission build-out spread over many power plants
    • Competitive selection of solar projects
      • Upfront evaluation of technical viability and project financing
      • Ability to better coordinate project time schedules
        • Enable coordinated approach to environmental assessments
    • Volume pricing agreements for engineering and construction (E&C), turbines, piping, steel, concrete, and other commodity materials
  • Challenges: Grid Integration
    • Ensure safe and reliable two-way electricity flow
    • Develop smart grid interoperability
    • Create models for renewable systems that allow them to be included in planning and analysis tools
    • Integrate energy storage for short-term load balancing and long-duration peak shifting
    • Integrate solar with time-of-use pricing and demand response
    • Develop more reliable inverters (>10 yrs)
    • Understand how a multitude of large megawatt systems affect grid stability
    • Understand how various climates and conditions affect system reliability
  • Addressing Grid Integration Barriers
    • Solar Energy Grid Integration Systems (SEGIS) is an industry partnership collaborative program
      • Will allow customer-generated electricity to be better allocated
      • Defines requirements for energy storage
      • The SEGIS “brain” is expected to be a combination of the inverter, controller and energy management system
    • The PV Community Project focuses on the testing and evaluation of fielded PV systems
  • SEGIS Program Phase I Awards for Advanced Inverters/Controllers/Energy Management Systems SEGIS Phase-I Awards
  • Challenges: Market Transformation
    • Shortage of information about solar technologies and little consumer awareness
    • Insufficient product standards
    • Inconsistent interconnection, net metering, and utility rate structures and practices for solar systems
    • Inadequate codes and complex and expensive permitting procedures
    • Inconsistent and insufficient state and local financial incentives and other market drivers
    • Lack of flexible, sophisticated, and proven financing mechanisms
    • Limited education for and insufficient numbers of trained and experienced personnel and services
  • Addressing Market Transformation Barriers
    • State Technical Outreach
      • Working with regulators and policy makers to ensure proper policy framework
    • Utility Technical Outreach
      • Working with utilities to foster their acceptance and use of solar
    • Codes and Standards
      • Collaborating with code officials to create uniform practices in solar code development
    • Education, Training and Workforce Development
      • Working with training centers and certifying bodies to foster a robust qualified workforce
    • Solar America Cities Partnership
      • Partnering with 25 cities to assist with city-wide solar energy adoption
    • Solar America Showcases
      • Providing technical assistance for large scale, highly visible PV installations
  • The SETP works with a number of stakeholders to grow and accelerate the U.S. the Solar Industry Slide The PV industry has the potential to enter a “virtuous cycle” of lower cost, new technology and expanded markets. To reach it’s full potential, the PV industry requires close coordination between a number of public and private entities. Universities and National Labs Utilities and End Customers Building Industry and Workforce Dev Groups Financial Industry Solar and Other Industry Groups State Legislators and Regulators Federal Policy Makers and Other Agencies DOE EERE SETP Technology Innovation and Policy Cost Reduction Private Investment New Markets and Applications Manufacturing Scale-Up
  • The solar program will need to be continually rebalanced to adjust to dynamic industry conditions Slide
  • The U.S. is rich in PV technology innovation
    • The US is the most diversified in solar technologies receiving VC and PE financing, with substantial investment in thin film PV, as well as CPV and CSP
      • In Europe, most of the funding has been to polysilicon and c-Si PV companies
      • In Asia, almost all investment has gone to c-Si PV
  • Solar innovation in the U.S. is threatened by the current economic downturn and lack of a domestic market Slide More than 100 U.S. Companies ???
    • US leads the World in solar innovation and R&D spending
    • We are still losing ground to Germany and Japan in production
    • Starting to catch up . . .
        • More than 100 US solar start-ups and $2.5B in commercial investment in 2008 alone
    • . . . but the economic downturn could threaten these innovative companies
  • Thank You Slide Contact Information: JoAnn Milliken Solar Energy Technologies Acting Program Manager U.S. Department of Energy Email: joann.milliken@ee.doe.gov Phone: 202-586-2480 on the web: www.solar.energy.gov Sign up for SETP quarterly newsletter by emailing: solar@ee.doe.gov