[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012
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[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012

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There are major challenges facing the U.S. today, and one of the most important of all is to meet growing energy demands. The U.S. needs a more diverse, cleaner mix of energy sources (see figure 1) ...

There are major challenges facing the U.S. today, and one of the most important of all is to meet growing energy demands. The U.S. needs a more diverse, cleaner mix of energy sources (see figure 1) that will provide security without causing irreversible harm to the globe. With shaky renewable energy support from the American public, gas prices at an all-time high (despite slight drop this week), spending from the 2009 stimulus bill mostly spent (see expired U.S. energy initiatives above) and a presidential race bringing significant focus to energy policy, clean energy will have to become more than a political-focal-point – Zpryme examines the clean energy landscape.

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[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012 [Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012 Presentation Transcript

  • INSIDE CLEAN ENERGYbiomass geothermal A 13-Page Special Report on the Current State of U.S. Clean Energy. energy storage solar coal uclear wind Zpryme Smart Grid Insights | May 2012 | Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved
  • biomas geotherma INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyTable of ContentsUS: THE CLEAN ENERGY LANDSCAPE ................................................................. 2US: THE CLEAN ENERGY MIX ............................................................................... 4 Biomass ............................................................................................................... 5 Biomass Recent U.S. News .......................................................................... 5 Biomass Policies, Laws, & Regulation ........................................................ 5 Biomass Leading Technologies .................................................................. 6 Coal .................................................................................................................... 6 solar storage Coal Recent U.S. News ................................................................................ 6 Coal Policies, Laws, & Regulation .............................................................. 7 Coal Leading Technologies........................................................................ 7 Geothermal ....................................................................................................... 8 Geothermal Recent U.S. News ................................................................... 8 Geothermal Policies, Laws, & Regulation ................................................. 8 Geothermal Leading Technologies .......................................................... 9 Nuclear ............................................................................................................... 9 Nuclear Recent U.S. News ........................................................................ 10 Nuclear Policies, Laws, & Regulation ...................................................... 10 Nuclear Leading Technologies ................................................................ 10 wind Solar & Wind .................................................................................................... 10 Solar & Wind Recent U.S. News ................................................................ 11 Solar & Wind Policies, Laws, & Regulation .............................................. 11 coal nuclear Solar & Wind Leading Technologies ........................................................ 12 Energy Storage ................................................................................................ 13 Energy Storage Recent U.S. News ........................................................... 13 Energy Storage Policies, Laws, & Regulation ......................................... 13 Energy Storage Leading Technologies ................................................... 14BOTTOM LINE: CLEAN ENERGY & THE US.......................................................... 141 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy biomas geotherma “By working together, we can seize the clean energy opportunity – saving money for consumers, promoting sustainable economic growth and solar storage protecting the planet for future generations.” Source: Steven Chu, U.S. Secretary of Energy, (quote from the third session of the Clean Energy Ministerial), April 27, 2012 wind coal nuclear2 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyUS: THE CLEAN ENERGY LANDSCAPE historic highs, and under current policies, we estimate that energy use and CO2 emissions would increase by a thirdThere are major challenges facing the U.S. today, and one by 2020, and almost double by 2050,” she says. “Manyof the most important of all is to meet growing energy clean energy technologies are available but they are notdemands. The U.S. needs a more diverse, cleaner mix of being deployed quickly enough to avert potentiallyenergy sources (see figure 1) that will provide security disastrous consequences.” In its report, Tracking Cleanwithout causing irreversible harm to the globe. “In the last Energy Progress, the EIA ranked progress on 11 key low-few years, we’ve seen wind and solar become carbon indicators, including renewables, nuclear energymainstream and a cost competitive energy resources for and carbon capture and storage, and found the worldthe United States,” said John McDonald, Director, was on track to meet just one of these targets.Technical Strategy & Policy Development, GE’s DigitalEnergy business to Zpryme. “While the wind market faces The report, Tracking Clean Energy Progress, offers threesome uncertainty in 2012 with the expiration of the policy recommendations for moving clean-energyProduction Tax Credit, wind – and renewables more technologies to the mainstream market:broadly – will continue to play an important role inmeeting our future energy demands.” 1. Level the playing field for clean energy technologies. This means ensuring that energy prices Installed U.S. Capacity (GW) by Renewable Energy Source, 2010 to 2035 reflect the “true cost” of energy – accounting for Figure 1, Source: U.S. EIA the positive and negative impacts of energy Growth production and consumption.Renewable Energy Source* 2010 2015 2020 2025 2030 2035 (2010 to 2035)Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11% 2. Unlock the potential of energy efficiency, theGeothermal 2.4 2.8 3.7 4.4 5.5 6.4 170% “hidden fuel” of the future. Making sure that energyWood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11% is not wasted and that it is used in the best possibleSolar 0.9 3.5 3.5 3.8 5.2 9.6 933% way is the most cost-effective action and must beWind 39.1 51.6 51.6 54.6 57.5 65.4 68% the first step of any policy aimed at building aEnergy Storage* 1.7 2.4 5.2 7.3 9.2 12.5 635% sustainable energy mix.*ZprymeWhile progress is being made on renewable energy, most 3. Accelerate energy innovation and public supportclean energy technologies are not being deployed for research, development and demonstration. Thisquickly enough; the International Energy Agency (EIA) said will help lay the groundwork for private sectorthis week. “The world’s energy system is being pushed to innovation, and speed technologies to market.breaking point,” Maria van der Hoeven, executive directorof the EIA writes. “Energy-related CO2 emissions are at Back to the U.S. -- Americans are still divided about whether to eliminate federal subsidies for any form of3 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energyenergy and is giving less support to nuclear power and U.S. Adding to both public and private sector pressure, aAccording to another recent report Who’s Winning the handful of U.S. energy initiatives have expired and mayClean Energy Race? from the Pew Charitable Trusts, the not be renewed; for example in 2011:United States has invested the most in Clean Energy of anycountry in 2011 (see figure 2), retaking the lead from  Energy Efficient Homes Tax Credit for BuildersChina, which had held the top sport for the last two years.  Advanced Energy Manufacturing Tax Credit  Department of Energy Section 1705 Loan Top 10 in Clean Energy Investment, 2011 Figure 2, Source: Pew Charitable Trusts1 Guarantees  Department of the Treasury Section 1603 Grant Program 2011 Investment 2010 Investment % 2011 Rank Country (USD billions) (USD billions) change With shaky renewable energy support from the American 1 United States 48 33.7 42% public, gas prices at an all-time high (despite slight drop 2 China 45.5 45 1% this week), spending from the 2009 stimulus bill mostly 3 Germany 30.6 32.1 -5% spent (see expired U.S. energy initiatives above) and a 4 Italy 28 20.2 39% 5 Rest of EU-27 11.1 15.2 -27% presidential race bringing significant focus to energy 6 India 10.2 6.6 55% policy, clean energy will have to become more than a 7 United Kingdom 9.4 7 34% political-focal-point. 8 Japan 8.6 7 23% 9 Spain 8.6 6.9 25% 10 Brazil 8 6.9 16% US: THE CLEAN ENERGY MIXThe U.S. is sliced down the middle regarding the As the world moves towards energy independence,elimination of federal subsidies for any form of energy and several types of clean energy technology have attainedis giving less support to nuclear power and U.S. funding of media attention, have policies and laws that regulaterenewable energy, a new poll has found, a new Yale- them, and have technologies that are being developedGeorge Mason University poll has found this week. Fifty- to further increase efficiency and safety.four percent of respondents opposed doing away withsubsidies for oil, gas, coal, nuclear or renewable energy, Biomass, clean coal, geothermal, nuclear, solar, wind, andwhile 47% favored the idea. Further, just fewer than 80% of storage technologies offer the opportunity to move fromAmericans support federal funding of renewable energy carbon based energy products to clean, renewableresearch. energy sources.1 From Who’s Winning The Clean Energy Race? - These figures have been revised byBloomberg New Energy Finance as of February 2012.4 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyBiomass received a $5 million grant to build a biofuel digester to replace 90% of the fossil fuels it currently uses. Finally, onIn 2011, 19,786,000 Mw hrs of electricity was created from April 14, an airplane flew across the Pacific Ocean fueledbiomass, biogenic municipal solid waste, landfill gas, by biofuels. The plane departed from Washington, andsludge waste, agricultural byproducts, and other biomass illustrates the potential impact biofuels and is the first stepsolids, liquids and gases. Excluding hydro and wind power, to reduce oil dependence.biomass dominates the projected increases in USrenewable energy generation, being projected to Biomass Policies, Laws, & Regulationincrease four-fold primarily due to Federal requirements touse more bio-mass based transportation fuels, and state EPA regulations are stringent, governing boilers and otherlevel required portfolio scales. However, the growth rate is equipment that burn biomass. The main focus is onalso projected to slow as tax credits will expire in 2012. controlling emissions of carbon monoxide, particulate matter, hydrogen chloride, mercury, and dioxins/furans at Installed U.S. Capacity (GW) for Biomass, 2010 to 2035 major sources of industrial, institutional, and commercial Figure 3, Source: U.S. EIA boilers. GrowthRenewable Energy Source 2010 2015 2020 2025 2030 2035 (2010 to 2035) Another source of regulation is through the US DepartmentWood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11% of Agriculture, which governs the land management practices of the 155 national forests, 20 grasslands, and 1The U.S. capacity for biomass is projected to grow from prairie. The main focus of the policies is to create2.5GW in 2010 to 2.7GW by 2035. The compound annual standards regarding the use of the land including wildlife,growth rate (CAGR) from 2010 to 2015 is projected to be endangered species, and protected areas. The Land11 percent. Management Act has been used recently as land has been designated for use in biomass facilities, and theBiomass Recent U.S. News environmental effects of these facilities have been investigated. Furthermore, the ARRA of 2009 allows eligibleSeveral biomass projects have gained recent attention in taxpayers to receive a tax credit or grant from the USthe National media. Wisconsin’s Public Service Treasury Department for electricity generated by qualifiedCommission voted 3-0 to direct 75% of funding for energy resources. The legislation allowed incrementalrenewable energy efforts to biomass projects, focusing on energy production associated with the expansion ofthe state’s strengths in agriculture and forestry. This biomass facilities to increase 1.1 cent to 2.2 cents per hourinvestment brings $7.5 million to the industry. Nova depending on open or closed loop systems.Thermal is currently installing a pilot project atPhiladelphia’s Waste Water Treatment Plant to convert The Energy Independence and Security Act of 2007,sewage into biomass fuel. In addition, Kansas has recently establishes a target of 36 billion gallons per year of biofuel5 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energyutilization. Through the establishment of such guidelines,  Cookstove Technologies: the most prevalentincentives and targets have allowed for the development biomass use is in small stoves in underdevelopedof the biomass field, while protecting the environment of areas. Current technologies focus on improvingpotential hazards. Finally, the Energy Policy Act of 2005 efficiency and lowering emissions, as well asextended $50 million in grants in biomass energy projects, reducing the chance for fire or poisoning fromfurther highlighting the importance and providing burning the fuel.regulations for the biomass energy. CoalBiomass Leading Technologies Coal is the largest source of electricity generation in the  Combustion: the main approach utilizing biomass is United States. The EIA projects that few new coal-fired to use combustion in a boiler, where the steam is power plants will be built and a 25% growth rate will be sent to a turbine, which in turns creates electricity. experienced for coal from 2009-2035. However, several new laws and regulations are being imposed on the coal  Co-Generation Facilities: the combined heat and industry, which could offer significant challenges for future power production facility is located on industrial sites growth. with a steady supply of biomass. It operates with a combustion boiler, but the steam created is also Installed U.S. Capacity (GW) for Coal, 2010 to 2035 recovered and used for heating needs. This Figure 4, Source: U.S. EIA produces high energy efficiency rates of over 80% Growth Renewable Energy Source 2010 2015 2020 2025 2030 2035 conversion rates. (2010 to 2035) Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%  Gasification: the biomass is heated in an The U.S. capacity for coal is projected to grow from environment where it breaks down into a flammable 308GW in 2010 to 285.8GW by 2035. The compound gas. After the gas is cleaned and filtered, it can annual growth rate (CAGR) from 2010 to 2015 is projected then be used in combined cycles and in gas and to be -7 percent. steam turbines. Coal Recent U.S. News  Anaerobic Digestion: the biomaterials go through fermentation that converts the organic materials The Obama Administration recently proposed the 1st into mostly methane (60%) and carbon dioxide standards to cut carbon dioxide emissions from all new (40%) biogas. Enzymatic digestion and hydrolyzate power plants. In conjunction, the EPA proposed new fermentation both increase the fermentation levels source performance standards. These standards will hold and act as a catalyst for conversion. all new coal fired power plants to the same regulations as6 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energynatural gas powered plants. The ACCE President and CEOreleased a statement in response stating that the EPA is  Post-Combustion Capture: Flue Gas Separationignoring the effect such policies have on American treats the carbon dioxide as a pollutant and passesfamilies and accuses them of attempting to stagnate the the flue gas through an amine solution where it iscoal industry, thus making it impossible to build new plants absorbed. 20-25% of the total plant output isdue to the economic impact of such policies, and will reduced due to reduced efficiency and the energycause the closure of existing plants. Other news suggests requirements of the capture process.that a collaboration of US and Chinese technologies willallow the US to utilize the billions of dollars it has spent in  Oxyfuel Combustion: the coal is burned in anresearch and development, as well as carbon capture oxygen-rich environment. The flue gas is mostlysequestration and storage in an area where one new coal carbon dioxide and thus is more readily captured byplant is built weekly on average. This collaboration will the amine scrubbing process. It is achieved forallow the US advancements in clean coal technology to about half the cost and the plant utilizes severalbe utilized on a large scale, in an area with fewer pieces of technology, including an air separationregulations. unit, boiler island, compression and purification units.Coal Policies, Laws, & Regulation  Integrated Gasification Combined Cycle (IGCC): using the coal and steam to produce hydrogen andIn April 2012, the EPA proposed new source performance carbon dioxide from the coal, it is burned in a gasstandards for all new fossil-fired electricity generating units. turbine and secondary steam turbine. The gasifier isThis standard required that the emissions from coal fired fed oxygen instead of air and the result is highlyplants be equal to plants generating electricity from concentrated carbon dioxide which is more readilynatural gas. The EPA has also proposed National Uniform captured post-combustion.Emission Standards for storage vessels, transfer operations,and control devices. The Clean Air Amendments promote  Pre-Combustion Capture: using a shift reactor tothe use of clean, low-sulfur coal, as well as the oxidize the carbon dioxide with water, the resultingdevelopment of innovative technologies to clean high- gas steam is hydrogen and carbon dioxide. Thesulfur coal. In addition, the amendments encouraged carbon dioxide and other impurities are able to beexisting plants to repower with clean coal technologies. separated before combustion with 85% of theFinally, laws govern the storage of the byproducts of coal carbon dioxide removed. The remaining hydrogencombustion, namely carbon dioxide, to prevent spills or becomes the fuel for electricity generation.contamination of the soil and water supply.Coal Leading Technologies7 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyGeothermal byproduct of oil and gas wells and converts it into geothermal energy. The federal government has alsoGeothermal energy is able to take advantage of the approved the use of geothermal technology to createconsistent temperature of the earth at depths of 150-200 energy at the Newberry Volcano in Oregon. The goal is tometers or more. The heated water is then extracted from produce commercial levels of geothermal energy. Finally,the earth and used to both generate electricity and heat the National Renewable Energy Lab and the State offacilities. North Dakota identified two locations to test advanced geothermal systems in Rhame and Dickinson. These Installed U.S. Capacity (GW) for Geothermal, 2010 to 2035 developments in the field of geothermal energy identify Figure 5, Source: U.S. EIA the potential usages of geothermal energy, as well as Growth advanced technologies that can make the energy typeRenewable Energy Source 2010 2015 2020 2025 2030 2035 (2010 to 2035) more productive.Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170% Geothermal Policies, Laws, & RegulationThe U.S. capacity for geothermal is projected to grow from2.4GW in 2010 to 6.4GW by 2035. The compound annual First, the 1974 Geothermal Research Development andgrowth rate (CAGR) from 2010 to 2015 is projected to be Demonstration Act established the first set of policies in170 percent. geothermal energy and serves as a foundation for all geothermal energy research and production. In 2007,Geothermal Recent U.S. News Congress passed the Advanced Geothermal Energy Research and Development Act, which supports andBall State University in Muncie, Indiana has been expands geothermal energy production, and awardsrecognized for its geothermal energy system, which has grants to establish Geothermal Technology at centers ofcut heating costs by 50%. The university has over 1800 higher education. It also established geothermal energybore holes on the property that are at a depth of 400 feet as a priority and an area to be further explored. Morebelow ground where it reaches an equilibrium recently geothermal energy is further supported bytemperature. In addition, geothermal technology will be programs where residential and commercial facilitiesused to treat contaminated soil and water from the qualify for either a federal investment tax credit orLawrence Aviation Industries Superfund site in New York. production tax credit by employing geothermal energyThe treated water will be used to condition the air inside a technology.new water treatment plant, producing higher efficiency.The US Department of Energy has announced plans to tapinto geothermal energy from the Rocky Mountain Oil TestCenter in Wyoming. This project uses hot water that is a8 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyGeothermal Leading Technologies Nuclear  Closed Loop Systems: circulate water or a mixture of According to the World Nuclear Association there are antifreeze and water through a series of closed, plans for a number of new reactors in the U.S., the buried pipes. prospect of low natural gas prices continuing for several years has dampened these plans and probably no more  Open Loop Systems: also utilize a series of closed, than four new units will come on line by 2020. buried pipes, but utilize a lake, well, or pond to draw water into the system. The energy is extracted from Nuclear Power in the United States:2 the water, and then returned to its source.  The U.S. is the worlds largest producer of nuclear  Enhanced Geothermal Systems: reservoirs are power, accounting for more than 30% of worldwide engineered to produce energy from existing nuclear generation of electricity. geothermal sources. This involves improving the permeability of rock and allows access to the Earth’s  The countrys 104 nuclear reactors produced 807 heat at a depth. Production wells remove the water billion kWh in 2010, over 20% of total electrical from the rock and extract the energy from it. output.  Geothermal Heat Pumps: moves the energy from  Following a 30-year period in which few new the geothermally heated water to the home or reactors were built, it is expected that 4-6 new units business. During the winter it uses the heat from may come on line by 2020, the first of those resulting water heated by the earth into the home or business from 16 license applications made since mid-2007 to and in the summer it pulls the heat from the facilities build 24 new nuclear reactors. and discharges it into the ground.  However, lower gas prices since 2009 have put the  Dual Source Heat Pump: combines a traditional air economic viability of some of these projects in source heat pump with a geothermal heat pump. doubt. Overall, the heat pump is less expensive in most cases than complete geothermal heat pumps and  Government policy changes since the late 1990s offers improved efficiency from traditional systems. have helped pave the way for significant growth in nuclear capacity. Government and industry are working closely on expedited approval for construction and new plant designs. 2 World Nuclear Association, April 22, 20129 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy adopted new safety rules that would require power plants Installed U.S. Capacity (GW) for Nuclear, 2010 to 2035 Figure 6, Source: U.S. EIA to have plans in place to prevent and deal with potential natural disasters. Although the commission has approvedRenewable Energy Source 2010 2015 2020 2025 2030 2035 Growth (2010 to 2035) the new regulations, it disagrees on the implementations.Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11% The new rules will likely require plants to undertake costly upgrades. Nuclear power companies are given a year toThe U.S. capacity for nuclear is projected to grow from propose their plans to be fully compliance by 20165.308GW in 2010 to 285.8GW by 2035. The compoundannual growth rate (CAGR) from 2010 to 2015 is projected Nuclear Leading Technologiesto be 11 percent. Currently, five nuclear reactors designs are under the NRCNuclear Recent U.S. News design certification process. These include6:In February 2012, the Nuclear Regulatory Commission  GE – Advanced Boiling: Water Reactor (ABWR)(NRC) approved license to build new nuclear reactors. Thecommission approved a combined construction and  Westinghouse: Advanced Passive 1000 (AP1000)operating license for an AP1000 reactor design fromWestinghouse Electric3. The approval for new commercial  GE-Hitachi Nuclear Energy: Economic Simplifiedreactor was the first since Three Mile Island accident in Boiling-Water Reactor (ESBWR)1979.  Mitsubishi Heavy Industries: U.S. AdvancedNuclear Policies, Laws, & Regulation Pressurized-Water Reactor (US-APWR)The Obama Administration remains committed to nuclear  AREVA: U.S. Evolutionary Power Reactor (U.S. EPR)power as part of its overall energy policy. It has providedan $8 billion in loan guarantee for construction of new Solar & Windreactors at the Vogtle and another $200 million support forNRC licensing. In March 2012, it announced a $450 million Solar and Wind technology are two of the most well-to support the design, development, and licensing of two known clean energy types. Solar energy is utilized in allAmerican-made small modular reactors (SMRs) five years4. states, both at commercial facilities and in residential environments. Wind technology is also common placeIn an aftermath of the Fukushima accident, the NRC has and can be utilized through both wind farms and at3 www.nei.org/newsandevents/newsreleases/nrc-approval-of-plant-vogtles- 5 www.pbs.org/wgbh/pages/frontline/health-science-technology/nuclear-construction-operating-license-opens-new-nuclear-energy-era aftershocks/first-post-fukushima-safety-rules-approved-by-nrc/4 www.ne.doe.gov/newsroom/2012PRs/nePR032212.html 6 www.nrc.gov/reactors/new-reactors/design-cert.html10 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energyindividual facilities. and others involved in the suit. Wind technology has also entered the spotlight as a lawsuit filed by environmentalists Installed U.S. Capacity (GW) for Solar, 2010 to 2035 Figure 7, Source: U.S. EIA has been settled, thus allowing turbines to be installed in Nevada’s 1st wind farm. The settlement also providesRenewable Energy Source 2010 2015 2020 2025 2030 2035 Growth additional research on how construction of the facility will (2010 to 2035)Solar 0.9 3.5 3.5 3.8 5.2 9.6 933% affect the sage grouse and bats indigenous in the area. Maine’s largest wind energy developer lost approval of a project, as nature guides and those engaged in theThe U.S. capacity for solar is projected to grow from .9GW tourism industry opposed development. The companyin 2010 to 9.6GW by 2035. The compound annual growth plans to offer a scaled down version of the project torate (CAGR) from 2010 to 2015 is projected to be 933 reach a compromise in the future. First Wind secured thepercent. financing ($76 million) to construct the Bull Hill Wind Installed U.S. Capacity (GW) for Wind, 2010 to 2035 Project, the 5th in Maine, where it will create construction Figure 8, Source: U.S. EIA jobs, increase local tax revenue, and provide clean Growth energy for 18,000 homes in the area. Finally, AmericanRenewable Energy Source 2010 2015 2020 2025 2030 2035 (2010 to 2035) Wind Energy Association released an annual report,Wind 39.1 51.6 51.6 54.6 57.5 65.4 68% claiming that more than $20 billion in private investments was generated through wind power, with the majorityWhile the U.S. capacity for wind is projected to grow from dedicated to building new facilities and producing more39.1GW in 2010 to 65.4GW by 2035. The compound annual efficient turbines.growth rate (CAGR) from 2010 to 2015 is projected to be68 percent. Solar & Wind Policies, Laws, & RegulationSolar & Wind Recent U.S. News Much of the regulations on the solar energy are created through the Solar Energy Industries Association’sNASA’s new Moffet Field facility has been rated the collaboration with the US Congress to draft regulationsgreenest federal building in the nation, because of its that affect the industry in areas including finance,usage of green technology, including solar and wind manufacturing, and tax programs. In addition, thesystems. The 80,000 sq. ft. building has earned a LEED American Wind Energy Association has also worked withcertification for its use of green technologies. Solar power Congress to create reforms in both wind energy and in thehas also reached international attention as a law suit has renewable energy field as a whole.been filed against Chinese firms for engaging in unfairtrade practices and offering low cost imports that have Most recently, the Clean Energy Standard Act of 2012 hasbeen flooding the US market and “undermining the US been proposed to create a national standard for cleansolar industry” according to Solar Wind Industries America and renewable energy generation, with a goal of 80%11 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energyclean energy generation by 2035. Programs include the  Thin Film: the use of thin film has been expanded toDepartment of Energy Loan Guarantee program, which allow spray on options and include window liners.was created in the Energy Policy Act of 2005 which aims to The improved technology allows the ability to utilizesupport new and innovative technologies, as well as solar power on untraditional sources, includingreduce the risk associated with introducing these new windows. In addition, the spray-on options allowproducts into the market. solar panels to be installed in nontraditional locations where solar energy was unable to beRenewable energy standards and clean energy standards cultivated in the past.require a certain percentage of electricity to begenerated by renewable sources. Both standards have  Scaled Wind Farm Technology (SWIFT): SWIFTincreased investments in both solar and wind power. The technology enables efficient and near silent windEnergy Policy of 1992 was the first driver of renewable turbine operation, is grid connected and can beenergy investment, establishing a production tax credit mounted to a structure or a pole. The SWIFTwhich started massive investments in the renewable technology is ideal to urban and suburban areas.energy field. Wind energy was a key recipient of saidinvestments. Wind energy’s main regulations are primarily  Floating Wind Turbines: these large scale windconcerned with wildlife protection, as well as noise control. turbines are anchored to the sea floor by cablesBoth issues have prevented some wind farms from being and float over waters over 100m deep. In deepererected or otherwise affected their size or location. waters, the wind is consistently higher and the turbines are able to move with changing waters,Solar & Wind Leading Technologies thus being able to survive storms. If a problem does occur, they can be towed to port for repairs,  Back Contact Silicon PV Panels: recently installed at minimizing down time. a DOE facility, these solar panels demonstrate an efficiency of 23.4%, a record for mass produced,  Micro Wind Turbines: these small turbines are large scale solar panels. All of the contacts are on designed for use on smaller scale projects and are the back of the solar cell, leaving a larger space on being seen at homes in residential areas. Several the top for energy production. different types and models are available depending on need. Some are designed for powering a small  Microconverters: solar panels produce DC power, appliance, and modular units are available for while our homes utilize AC power. These systems larger scale use on the roofs of urban and suburban convert the electricity produced and allow the solar areas. Some are pole mounted and several types panels to produce AC energy that is ready to use. have also eliminated the need for a pole. These small scale models offer options to users and with so12 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy many options available, a user is able to find one to facilities could be filled by the fall and this would cause meet their specific needs. prices to fall by 50%. Hydrogenics Corporation entered into a contract with Elbridge, Inc to develop large, utilityEnergy Storage scale energy storage. AES Energy Storage will also work with Portland General Electric to create storage facilitiesOne challenge that has faced clean energy in the past is to bridge gaps and further incorporate renewable energyenergy storage. Because of the intermittent nature of into their electricity mix. This will be the first commercial-renewable energy, electricity can be stored during off- scale energy storage project in both Oregon and thepeak hours and channeled into the grid during high United States.demand times. Clearly, focus on energy storage and its ramifications have Installed U.S. Capacity (GW) for Wind, 2010 to 2035 come to the forefront of the United States news. Figure 9, Source: Zpryme Growth Energy Storage Policies, Laws, & RegulationRenewable Energy Source 2010 2015 2020 2025 2030 2035 (2010 to 2035)Energy Storage 1.7 2.4 5.2 7.3 9.2 12.5 635% The EPA has enacted several policies to govern storage devices. The Safe Drinking Water Act of 2010 governs theThe U.S. capacity for energy storage is projected to grow practice of injecting the earth with carbon dioxide forfrom 1.7GW in 2010 to 12.5GW by 2035. The compound underground storage. It established a new classificationannual growth rate (CAGR) from 2010 to 2015 is projected of well and set up the minimum technical requirements toto be 635 percent. protect underground drinking water. Underground storage tanks are also governed by a series of EPAEnergy Storage Recent U.S. News regulations. These policies are designed to prevent loss or compromise due to structural failure, corrosion, overfills orBill Gates made recent news as he spoke about the need spills for as long as the tank is used. Industry codes andto increase energy storage. He said that all of the standards also govern the construction of thebatteries in the world could contain 10 minutes of the underground storage tanks to insure proper function.world’s electrical needs. Because of the inadequatestorage capacity, this makes the energy produced from RCRA and CWA requirements have also created stringentbiomass, clean coal, geothermal, solar and wind energy standards that have significantly reduced the use ofsecondary problems. Energy is lost consistently from these underground storage tanks. This has also increased thesources because it is incapable of being stored efficiently. use of above ground tanks, which have less federalNatural Gas also brought attention to the inadequacy of regulations. These requirements require leak detection,energy storage as it was released that at its current rate of corrosion, protection and control for spills and overfills.production, a record high level, that all of the US storage Finally, the Federal Regulatory Commission has issued a13 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energymandate to support the development of energy storagetechnology to provide intermittent support to the electric  Lithium-ion Batteries: is a family of rechargeablegrid and maintain the 60 hertz frequency on which the battery types in which lithium ions move from thegrid functions. The mandate increases the payment to negative electrode to the positive electrode duringcompanies that provide the fastest and most accurate discharge, and back when charging. Lithium-basedfrequencies for energy storage. batteries are common in two applications: Power for portable equipment and low-power, long-lifeEnergy Storage Leading Technologies applications.  Pumped Hydro-Storage: oldest and largest type of  Hydrogen: hydrogen can be stored in multiple storage is comprised of two tanks, one lower tank forms- gas, liquid, metal hydride and carbon-based and one higher tech. During off-peak times, water is forms. A chemical reaction can release this stored pumped into the higher tank and stored. When energy, creating a closed loop, and converting the demand increases, the water is pumped to a lower stored energy into grid accessible energy. tank and passes through turbines, which generate energy on its way. BOTTOM LINE: CLEAN ENERGY & THE US  Compressed Air Energy Storage (CAES): uses off- It is clear that the amount of coal and oil available are peak power to pressurize air in an underground declining and federal regulations simply highlight the cavern or reservoir which is then used during peak growing dedication to moving to more renewable and times to power a generator or turbine. This process clean energy sources. Recent improvements in the removes the need for air compressors, and power technology available in all areas, biomass, coal, produced is increased 2 to 3 times. geothermal, nuclear, solar, wind and storage will lead the way as a move to decreased dependence on fossil fuels  Regenerative Fuel Cells: redox flow cell batteries- a and increased reliance on renewable, clean energy reversible electrochemical reaction between two sources is embraced on a larger scale. For this transition to electrolytes stores and releases energy in a closed be the most successful, additional funding at the federal loop cycle without discharge. Electrical energy level should encourage additional research and from the grid is converted to potential chemical development, as well as deployment on a small scale. In energy. addition, more collaboration by the federal agencies and industry associations must be developed to establish the  Superconducting Magnetic Energy Storage (SMES): proper regulatory framework to guarantee both a cryogenically cooled core of a superconducting environmental safety and provide growth opportunities. material creates a direct current, which in turn creates a magnetic field which stores energy.14 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean EnergyAlso the U.S. continues to be at the top for clean energy worldwide trend of decreasing emissions, which are likelyventure capital and private equity investments, one to become more stringent in the future.market space in particular, the Smart Grid. Ken Geisler, VPof Strategy for the Siemens Smart Grid Division, told Zpryme For the transfer to more clean energy sources to be trulyrecently, “the Smart Grid is focused on three main successful, a collaborative approach utilizing multipleelements. Improved grid reliability, informed consumption energy sources based on location and needs, as well asand integration of variable and renewable resources. employing storage technology to insure the highest levelUtilities are moving rapidly to determine the best way of utilization of said resources is necessary.forward in each of these areas, leading with gridautomation, enhanced control center capabilities, and Utilities should be encouraged to investigate ways that theadvanced metering infrastructures in preparation for renewable energy mix they utilize can be enhancedproliferating renewable resources at both the transmission through employing renewable, clean energy sources thatand distribution levels. The key to enabling the expansion meet their geographic demands, while implementingof these renewable resources will be in establishing the storage technology to store the clean energy they createintegrated end to end solution managing renewable during off-peak times for use during peak demandvariation, controllable demand capacity, grid automation, periods, thus improving performance and increasingsituational awareness, and verification and education efficiency.through metering. Ultimately, providing for greater energyusage while reducing emissions and reliance on fossilfuels.” ‬‬On the flip side, two of the clean energy areas that offerthe largest growth potential currently are biomass andstorage. Technology is currently being utilized anddeveloped that will allow for significant growth rates in thenear future. Geothermal is also underutilized and offersgrowth potential, however drilling the holes necessary toutilize the technology more fully are prohibitive in the nearterm.Solar and wind technologies are much more fullydeveloped than their clean energy counterparts, and arelikely to experience reduced costs, making them morelikely to be adopted more fully in the future. Finally, coaloffers far less potential, especially considering the15 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  • INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy Zpryme Credits Editor Managing Editor Research Lead Megan Dean Samarth Bahl Stefan Trifonov Special Thanks To Ken Geisler Siemens VP of Strategy; Smart Grid Division John McDonald Director, Technical Strategy & Policy GE Development; GE Digital Energy Business Disclaimer These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. These materials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes no express or implied representations or warranties regarding these materials and the information herein. Without limiting the foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information contained herein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting, LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Your use of these and the information contained herein is at your own risk and you assume full responsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.16 Zpryme Smart Grid Insights | May 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
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