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Success with Energy Prices and 
     Greenhouse Gases
  Senate Briefing November 21, 2008

            Ken Zweibel
              Director
  GWU Institute for Analysis of Solar 
               Energy
Our Key Energy Problems
    Foreign Oil
•
    Energy Prices
•
    Carbon Dioxide
•
    Gas prices are less than they were, but do you 
•
    want to repeat the escalation to $5/gallon and 
    more?
The Plan To Get Rid of Foreign Oil

• What follows removes almost all foreign oil and its 
  CO2 by 2020‐2025
• Prepares us to remove most CO2 by 2050
Step 1: Plug‐in Hybrids
• Get rid of gasoline. Add non‐CO2 electricity
  – There will be more electricity, not less
• Re‐tool American auto industry for success
Electric Transportation

• Plug‐in hybrids
     Commuting – electricity
   –
     Range – liquid fuel
   –
     Charging
   –
     Efficient electric motors (>90%, instead of 30% internal 
   –
     combustion engines)
   – At today’s price of electricity, the electric portion of the 
     operating costs for hybrids is under $1/gallon equivalent
       • But the batteries cost a lot
   – THIS IS A HUGE OPPORTUNITY FOR CHANGING OUR 
     ENERGY WORLD!
Comparison of Plug‐In Hybrid Options
                                                  Estimated CO2 Emissions 
                                                  of Plug‐in Hybrids (g/mi)


                                         600
                                         500
                                         400
                                         300
                                         200
                                         100
                                           0
                                                      Gasoline               Solar                US 
                                                                            Electric            Electric 
                                                                            Hybrid                Mix 
                                                                                                Hybrid


Not including (1) battery CO2 footprint or (2) refining losses in gasoline, or (3) other noncombustion life-cycle losses in fossil fuels.
How Much Electricity?
About How Much Electricity?
    16.7 Quads go into light vehicles
•
                                                      • Need 1800 TWh of non‐
    24 Q are imported (2002)
•
                                                        CO2 electricity to 
    70% eliminated by PHEV electricity, 12 Q
•
    At 2 Quads for growth during program:  14 Q 
•
                                                        displace 14 Quads of oil 
    oil can be displaced

                                                        using plug‐in hybrids
    14 Q at 290 TWh/Q is 4000 TWh
•
    But efficiency of electric motor is at least a 
•
                                                      • Not enough to displace 
    factor of 3 better than internal combustion: 
    4000/3 = 1340 TWh electricity need
                                                        all imports
    Add for 25% transmission and battery 
•
    turnaround losses: need 1800 TWh new non‐
    CO2 electricity
    This should be a conservative number in the 
•
    sense that less new electricity may be 
    sufficient (needs more refined analysis)
Next 15 Years
• Transition to Plug in Hybrids (PHEV)
• Huge Build‐out of Wind
   – 20% of US electricity (800 TWh) – DOE goal
   – Mostly nighttime charging
   – “Not so dumb” grid
       • Pings accessibility of electricity before charging
• Meets almost half the potential electricity demand to eliminate 14 
  Q of oil (i.e., 6 Q offset)
• Where’s the rest to come from?
Step 2
• More (more‐expensive) wind
  – 200 TWh more
• Solar
• Cellulosic biofuels
Biofuels
• For
  – Chemical feedstocks
  – PHEV liquid fuels
  – Planes and Trucks
• How much?
  – Estimates about 10‐20 Quads of accessible 
    cellulosic feedstock
        • Offset 13 Q of oil (“soft” estimate)
        • See “Billion Ton Vision” Perlack et al. 2005
Where Are We
• Wind powered PHEV: 8 Q oil offset
  – Over half of PHEV potential of 14 Q
• Cellulosic biofuels: 13 Q
  – For PHEV range and key liquid fuels
• 21 Quads (70% of imported oil goal)
• Next, solar
There’s Plenty of Solar
                  1 day of unconverted US 
                  solar energy: 48,000 
                  TWh


                   1 year of US 
                   electricity: 4000 TWh
Let’s Remind Ourselves that Solar 
         Already Exists
Solar and New Nighttime Demand? 
                Huh?
• Commuters will charge at night
• But others will charge day or night
   – Not everyone has a garage
• We meet most demand for charging with wind and more 
  fossil fuels at night
• But with solar, we displace the fossil fuels we add at 
  night and meet some daytime charging
• NO NET NEW FOSSIL FUELS ARE ADDED, AND ALL NEW 
  ELECTRICITY COMES FROM WIND AND SOLAR!
Does this make sense?
• Can this be done within the constraint of not 
  adding new conventional electricity 
  generation?
  – To avoid new CO2
How Much Solar?
• If 1000 TWh/yr of this is wind…
• Then we need another 800 TWh/yr of solar to fully 
  offset the 14 Q of oil we can offset with PHEVs
• At solar output of 1.6 kWh/W‐yr installed (slightly 
  higher than US average sunlight), this is about 500 GW 
  of new solar capacity
• Does this mix of wind and solar meet our needs?
   – Remember, we may need a lot of new energy at night
   – The biofuels address the other portion of PHEV fuels
Notional Mix of Sources To Meet 
    Charging Needs While Subtracting CO2
7                                    8
                                     7
6
                                                                 Wind
                                     6
5
                                                                 Solar
                      Wind           5
4
                                     4                           Conventiona
                      Solar
3
                                     3                           l
                      Convention
2                                    2                        Nighttime
                      al
                                     1                        demand met
1
                                                              by wind &
                                     0
0                                                             shifting 
                      Total from                              conventional
                                         Day          Night
      Day     Night
                      conventional                            sources
                      sources 
            Now                                2020
                      unchanged
                                                              One unit is 444 TWh
Aren’t there some devilish details?
    Land for solar
•
    Cost 
•
    Solar and wind intermittency
•
    Transmission
•
    Speed of adoption
•
How Much Land Is 500 GW Solar?
• Ignore rooftops to get a “worst case” land use
• About 13,000 km2 (114 km on a side)
  – Assuming 40 W/m2 of land use
• Less than 0.2% of US “lower 48” land area (8 
  million km2)
• Is this a lot?
Land Use is a Strength for Solar
            Conventional                  Solar
Hydro       Hydro lakes over 1% US land 0.2% US land is 800 TWh/yr 
               7% electricity           (20% US electricity)
               300 TWh/yr               16 times less land than 
                                        hydro per kWh
Coal        About the same as solar       With solar, the land is not 
            when strip mining included    destroyed
Biomass     Plant efficiency less than    Efficiency and land use 
            0.1% after conversion to      about 40 times better than 
            useful work                   biomass (and no water or 
                                          food issues)
Growth of PV from 5 GW
                                                  @50%/yr Growth, 1/3 in US
Can We Do This 
Quickly?                                        4000

•Current world PV                                        GW World Annual PV
                                                3500
production is about 5 
                                                         GW US Annual
GW/yr                                           3000     Installed PV




                              US PV Installed
•Typical growth rate of PV                               GW Cumulative US
                                                2500     Installed PV
about 50%                                                TWh/yr in US SW
                                                2000
•At that growth rate, and 
assuming 1/3 goes to the                        1500
US, we accumulate 500 
GW installed and 800                            1000

TWh/yr in the US in 2018                                 800 TWh in 2018
                                                500
(10 years)
                                                  0
Where Does This Put Us?
    8 Q from wind
•
    13 Q from liquid fuels from biomass
•
    6 Q from solar
•
    27 Q of displaced oil
•
    – 14 if biofuels completely fails
• More than we currently import
  – Stop oil price rises dead in their tracks
Timeframe?
• Solar can do it in under 15 years
   – PV alone or PV and CSP
• Wind can do it in the same timeframe
• Biofuels unproven, but we don’t have to wait for them
• PHEV fleet may be gating item
   – How fast are we willing to change?
   – Probably can stabilize prices just by starting, but not 
     stabilize CO2 unless we finish what we started
How Much Would It Cost To 
Eliminate 14 Quads of Oil?
       Ignoring Biofuels
What Are the Major Costs?
• Solar:
   – $1.5 trillion (~$3/W for 500 GW)
   – Today’s best solar is $4/W and with volume and 
     technology learning, $3/W seems valid
• Wind:
   – $0.6 trillion (400 GW of wind at $1.5/W)
• Transmission and grid upgrades
   – $0.5 trillion
• Operating costs ($50 B/yr)
• Plug‐in hybrids instead of gasoline‐powered cars
• 13 other Q from biofuels (will not discuss)
How Much Does the Electricity Cost?

Annual           Annual              Capital             Annualized            Cost of solar 
electricity      operating cost      investment for      capital cost  of      and wind 
produced by      of  solar, wind,    solar, wind,        solar, wind,          electricity 
solar and wind   transmission        transmission        transmission          (operating + 
                                                         (Principal and        loan divided by 
                                                         Interest, 30          output)
                                                         year 6% loan)



1800 TWh         $50B                $2.6 trillion       $200 billion          13 c/kWh

            By that time, we may be paying more than 13 c/kWh for
            conventional electricity, especially if we use it for plug-in
            hybrids
                                     Simplified levelized cost of electricity, ignoring taxes
                                     and depreciation. After loan paid off, solar electricity
                                     operating cost drops to almost zero (not included in analysis).
Cost to the Driver (no biofuels)
Price of      Annual loan  Annual cost  Annual cost      Cost of fuel  Plug‐in 
gasoline per  payment on  of electricity  of gas for     for gasoline  hybrid
gallon        $10k added  for hybrid      hybrid (125    vehicle @     savings
              hybrid cost  (10k miles     gallons to     20 mpg
              (6 yr, 6%)   @ 3            drive 2500 
                           mi/kWh &  mi @ 20 
                           13 c/kWh)      mpg)
$2            $2000         $400                                            ($3400)
                                                  $250          $1250
$3            $2000         $400                                             ($900)
                                                  $375          $1875
$4            $2000         $400                                             ($400) 
                                                  $500          $2500
$5            $2000         $400                                               $100 
                                                  $625          $3125
$6            $2000         $400                                               $600
                                                  $750          $3750

                 -Breakeven at about $5/gallon gasoline
                 -Highly dependent on cost of batteries
                 -Highly dependent on financing and tax considerations
                 -Not very dependent on price of electricity
What Solar Issues Are Left?
• Intermittency
• Distant resources
• Short answer: the same solutions as work for 
  wind, work for solar
Solutions
• Solar variability can be overcome at the 
  regional and national levels when they are 
  aggregated
• Short term, at low usage, solar is invisible (like 
  demand fluctuations)
• As solar becomes larger, the grid can be 
  altered to compensate
Grid Responses
• Traditional back‐up power (natural gas) for smoothly varying gaps in 
  solar and wind (weather fronts and filling in when solar is naturally 
  less than midday)
• Aggregated transmission
   – Smoothes renewable output, allows diverting power more 
      responsively
• Reverse flow from plug‐in hybrid batteries
   – Can be used as source for the small amount of power needed to 
      fill sudden intermittency shortfalls
• Smarter grid
   – Turns on/off some insensitive demand
• More storage as needed (compressed air, CAES)
Where do we install the solar?
• Like wind, solar economics benefit from using the 
  most intense resource
   – Making solar electricity is about 50% cheaper in the US 
     Southwest
   – But losses from transmission eat up about half that 
     difference for distant loads (North East)
• Most likely distribution?
  – 40%‐80% in the Southwest
  – 20%‐60% distributed throughout the country
70
                                  CO2 reduction
                     60


                     50
                            CO2 now   CO2 later



Q as proxy for CO2
                     40


                     30


                     20


                     10


                     0




                          Don’t turn off electricity,
                          Turn off Gasoline !
Denoument
• Instead of thinking of shutting down existing coal plants, 
  we should be thinking of eliminating foreign oil and using 
  our existing fossil fuel plants to backup solar and wind 
   – But no need for new ones
• This will avoid the issue of abandoned assets (which still 
  have to be paid for), while solving our key problems – oil 
  prices and carbon dioxide emissions
• Then we can move on to the next level of CO2 reduction 
  post 2020
Government Role: Resources, Focus, 
                Facilitation
    Implement plug‐in hybrids
•
     – Re‐tool Detroit
     – Lower cost batteries 
    Catalyze existing solar and wind
•
    Improve grid and long‐distance transmission
•
    Develop cellulosic ethanol
•
    Manage hyper growth
•
     – Avoid pinch points and shortages
     – Properly schedule new capacity with demand
     – Favor lower prices
     – Assure local content
     – Short‐circuit financial manipulation
Thanks
Transmission Opportunities
The Sun Is Always Shining: Siemens HV 
               DC Vision




   12,000 mile transmission, about equivalent to storage losses (0.9720>0.5)
   Can balance night/day (east-west) and seasons (north-south)


Siemens 2007, EPRI, DC_Solutions_EPRI_Conference_09-07_V_1b, slide 47
International Transmission
• Could be cheaper than storage (capital plus losses)
• Removes sudden peaks and valleys due to geographic 
  distribution (avoids correlated cloud events)
• East – West
   – Extends daylight hours
   – Eventually could be “24 hour”
• North – South
   – Ameliorates seasonal solar variations (always about the 
     same output)
• Someone with world unification ideas could run with 
  this one…
First Solar PV Modules
Module Manufacturing Cost Reduction Roadmap
 $1.29/W
    100%       16‐18%




                           15‐17%



                                       7‐8%

                                                     4%                     $0.65 ‐ .70/W
                                                                  3%
                                                                              50‐55% 




    Q1 07     Efficiency   Low Cost   Spending   Throughput   Plant Scale        2012
  Cost/Watt                Location                                           Cost/Watt 
                                                                                Target
First Solar Balance of System 
           Roadmap
                                           1/3 of the total balance of 
~$1.56 /W
                                           system cost savings are driven 
 100%       6‐8%                           by our roadmap to achieve at 
                                           least 12% conversion efficiency
                       12‐14%



                                 2‐4%
                                            5‐7%
                                                       6‐8% ~$1.00/W Target

                                                                69‐59% 




2007 BoS    Inverter   Mech.     Elect.    Project      OH      2012 BoS
                       Install   Install    Costs                Target
Roadmap Result
• $1.75/W installed systems cost
• With margin, $2/W system price
• Well below the $2.5/W goal to make solar 
  equivalent to coal for a 12‐year program
Kz Senate Nov2008

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Kz Senate Nov2008

  • 1. Success with Energy Prices and  Greenhouse Gases Senate Briefing November 21, 2008 Ken Zweibel Director GWU Institute for Analysis of Solar  Energy
  • 2. Our Key Energy Problems Foreign Oil • Energy Prices • Carbon Dioxide • Gas prices are less than they were, but do you  • want to repeat the escalation to $5/gallon and  more?
  • 3. The Plan To Get Rid of Foreign Oil • What follows removes almost all foreign oil and its  CO2 by 2020‐2025 • Prepares us to remove most CO2 by 2050
  • 4. Step 1: Plug‐in Hybrids • Get rid of gasoline. Add non‐CO2 electricity – There will be more electricity, not less • Re‐tool American auto industry for success
  • 5. Electric Transportation • Plug‐in hybrids Commuting – electricity – Range – liquid fuel – Charging – Efficient electric motors (>90%, instead of 30% internal  – combustion engines) – At today’s price of electricity, the electric portion of the  operating costs for hybrids is under $1/gallon equivalent • But the batteries cost a lot – THIS IS A HUGE OPPORTUNITY FOR CHANGING OUR  ENERGY WORLD!
  • 6. Comparison of Plug‐In Hybrid Options Estimated CO2 Emissions  of Plug‐in Hybrids (g/mi) 600 500 400 300 200 100 0 Gasoline Solar  US  Electric  Electric  Hybrid Mix  Hybrid Not including (1) battery CO2 footprint or (2) refining losses in gasoline, or (3) other noncombustion life-cycle losses in fossil fuels.
  • 8.
  • 9. About How Much Electricity? 16.7 Quads go into light vehicles • • Need 1800 TWh of non‐ 24 Q are imported (2002) • CO2 electricity to  70% eliminated by PHEV electricity, 12 Q • At 2 Quads for growth during program:  14 Q  • displace 14 Quads of oil  oil can be displaced using plug‐in hybrids 14 Q at 290 TWh/Q is 4000 TWh • But efficiency of electric motor is at least a  • • Not enough to displace  factor of 3 better than internal combustion:  4000/3 = 1340 TWh electricity need all imports Add for 25% transmission and battery  • turnaround losses: need 1800 TWh new non‐ CO2 electricity This should be a conservative number in the  • sense that less new electricity may be  sufficient (needs more refined analysis)
  • 10. Next 15 Years • Transition to Plug in Hybrids (PHEV) • Huge Build‐out of Wind – 20% of US electricity (800 TWh) – DOE goal – Mostly nighttime charging – “Not so dumb” grid • Pings accessibility of electricity before charging • Meets almost half the potential electricity demand to eliminate 14  Q of oil (i.e., 6 Q offset) • Where’s the rest to come from?
  • 11. Step 2 • More (more‐expensive) wind – 200 TWh more • Solar • Cellulosic biofuels
  • 12. Biofuels • For – Chemical feedstocks – PHEV liquid fuels – Planes and Trucks • How much? – Estimates about 10‐20 Quads of accessible  cellulosic feedstock • Offset 13 Q of oil (“soft” estimate) • See “Billion Ton Vision” Perlack et al. 2005
  • 13. Where Are We • Wind powered PHEV: 8 Q oil offset – Over half of PHEV potential of 14 Q • Cellulosic biofuels: 13 Q – For PHEV range and key liquid fuels • 21 Quads (70% of imported oil goal) • Next, solar
  • 14. There’s Plenty of Solar 1 day of unconverted US  solar energy: 48,000  TWh 1 year of US  electricity: 4000 TWh
  • 16.
  • 17.
  • 18.
  • 19. Solar and New Nighttime Demand?  Huh? • Commuters will charge at night • But others will charge day or night – Not everyone has a garage • We meet most demand for charging with wind and more  fossil fuels at night • But with solar, we displace the fossil fuels we add at  night and meet some daytime charging • NO NET NEW FOSSIL FUELS ARE ADDED, AND ALL NEW  ELECTRICITY COMES FROM WIND AND SOLAR!
  • 20. Does this make sense? • Can this be done within the constraint of not  adding new conventional electricity  generation? – To avoid new CO2
  • 21. How Much Solar? • If 1000 TWh/yr of this is wind… • Then we need another 800 TWh/yr of solar to fully  offset the 14 Q of oil we can offset with PHEVs • At solar output of 1.6 kWh/W‐yr installed (slightly  higher than US average sunlight), this is about 500 GW  of new solar capacity • Does this mix of wind and solar meet our needs? – Remember, we may need a lot of new energy at night – The biofuels address the other portion of PHEV fuels
  • 22. Notional Mix of Sources To Meet  Charging Needs While Subtracting CO2 7 8 7 6 Wind 6 5 Solar Wind 5 4 4 Conventiona Solar 3 3 l Convention 2 2 Nighttime al 1 demand met 1 by wind & 0 0 shifting  Total from  conventional Day Night Day Night conventional sources sources  Now 2020 unchanged One unit is 444 TWh
  • 23. Aren’t there some devilish details? Land for solar • Cost  • Solar and wind intermittency • Transmission • Speed of adoption •
  • 24. How Much Land Is 500 GW Solar? • Ignore rooftops to get a “worst case” land use • About 13,000 km2 (114 km on a side) – Assuming 40 W/m2 of land use • Less than 0.2% of US “lower 48” land area (8  million km2) • Is this a lot?
  • 25.
  • 26. Land Use is a Strength for Solar Conventional Solar Hydro Hydro lakes over 1% US land 0.2% US land is 800 TWh/yr  7% electricity (20% US electricity) 300 TWh/yr 16 times less land than  hydro per kWh Coal About the same as solar  With solar, the land is not  when strip mining included destroyed Biomass Plant efficiency less than  Efficiency and land use  0.1% after conversion to  about 40 times better than  useful work biomass (and no water or  food issues)
  • 27. Growth of PV from 5 GW @50%/yr Growth, 1/3 in US Can We Do This  Quickly? 4000 •Current world PV  GW World Annual PV 3500 production is about 5  GW US Annual GW/yr 3000 Installed PV US PV Installed •Typical growth rate of PV  GW Cumulative US 2500 Installed PV about 50% TWh/yr in US SW 2000 •At that growth rate, and  assuming 1/3 goes to the  1500 US, we accumulate 500  GW installed and 800  1000 TWh/yr in the US in 2018  800 TWh in 2018 500 (10 years) 0
  • 28. Where Does This Put Us? 8 Q from wind • 13 Q from liquid fuels from biomass • 6 Q from solar • 27 Q of displaced oil • – 14 if biofuels completely fails • More than we currently import – Stop oil price rises dead in their tracks
  • 29. Timeframe? • Solar can do it in under 15 years – PV alone or PV and CSP • Wind can do it in the same timeframe • Biofuels unproven, but we don’t have to wait for them • PHEV fleet may be gating item – How fast are we willing to change? – Probably can stabilize prices just by starting, but not  stabilize CO2 unless we finish what we started
  • 31. What Are the Major Costs? • Solar: – $1.5 trillion (~$3/W for 500 GW) – Today’s best solar is $4/W and with volume and  technology learning, $3/W seems valid • Wind: – $0.6 trillion (400 GW of wind at $1.5/W) • Transmission and grid upgrades – $0.5 trillion • Operating costs ($50 B/yr) • Plug‐in hybrids instead of gasoline‐powered cars • 13 other Q from biofuels (will not discuss)
  • 32. How Much Does the Electricity Cost? Annual  Annual  Capital  Annualized  Cost of solar  electricity  operating cost  investment for  capital cost  of  and wind  produced by  of  solar, wind,  solar, wind,  solar, wind,  electricity  solar and wind transmission transmission transmission  (operating +  (Principal and  loan divided by  Interest, 30  output) year 6% loan) 1800 TWh $50B $2.6 trillion $200 billion 13 c/kWh By that time, we may be paying more than 13 c/kWh for conventional electricity, especially if we use it for plug-in hybrids Simplified levelized cost of electricity, ignoring taxes and depreciation. After loan paid off, solar electricity operating cost drops to almost zero (not included in analysis).
  • 33. Cost to the Driver (no biofuels) Price of  Annual loan  Annual cost  Annual cost  Cost of fuel  Plug‐in  gasoline per  payment on  of electricity  of gas for  for gasoline  hybrid gallon $10k added  for hybrid  hybrid (125  vehicle @  savings hybrid cost  (10k miles gallons to  20 mpg (6 yr, 6%) @ 3  drive 2500  mi/kWh &  mi @ 20  13 c/kWh) mpg) $2 $2000 $400 ($3400) $250 $1250 $3 $2000 $400 ($900) $375 $1875 $4 $2000 $400 ($400)  $500 $2500 $5 $2000 $400 $100  $625 $3125 $6 $2000 $400 $600 $750 $3750 -Breakeven at about $5/gallon gasoline -Highly dependent on cost of batteries -Highly dependent on financing and tax considerations -Not very dependent on price of electricity
  • 34. What Solar Issues Are Left? • Intermittency • Distant resources • Short answer: the same solutions as work for  wind, work for solar
  • 35. Solutions • Solar variability can be overcome at the  regional and national levels when they are  aggregated • Short term, at low usage, solar is invisible (like  demand fluctuations) • As solar becomes larger, the grid can be  altered to compensate
  • 36. Grid Responses • Traditional back‐up power (natural gas) for smoothly varying gaps in  solar and wind (weather fronts and filling in when solar is naturally  less than midday) • Aggregated transmission – Smoothes renewable output, allows diverting power more  responsively • Reverse flow from plug‐in hybrid batteries – Can be used as source for the small amount of power needed to  fill sudden intermittency shortfalls • Smarter grid – Turns on/off some insensitive demand • More storage as needed (compressed air, CAES)
  • 37.
  • 38. Where do we install the solar? • Like wind, solar economics benefit from using the  most intense resource – Making solar electricity is about 50% cheaper in the US  Southwest – But losses from transmission eat up about half that  difference for distant loads (North East) • Most likely distribution? – 40%‐80% in the Southwest – 20%‐60% distributed throughout the country
  • 39. 70 CO2 reduction 60 50 CO2 now CO2 later Q as proxy for CO2 40 30 20 10 0 Don’t turn off electricity, Turn off Gasoline !
  • 40. Denoument • Instead of thinking of shutting down existing coal plants,  we should be thinking of eliminating foreign oil and using  our existing fossil fuel plants to backup solar and wind  – But no need for new ones • This will avoid the issue of abandoned assets (which still  have to be paid for), while solving our key problems – oil  prices and carbon dioxide emissions • Then we can move on to the next level of CO2 reduction  post 2020
  • 41. Government Role: Resources, Focus,  Facilitation Implement plug‐in hybrids • – Re‐tool Detroit – Lower cost batteries  Catalyze existing solar and wind • Improve grid and long‐distance transmission • Develop cellulosic ethanol • Manage hyper growth • – Avoid pinch points and shortages – Properly schedule new capacity with demand – Favor lower prices – Assure local content – Short‐circuit financial manipulation
  • 44. The Sun Is Always Shining: Siemens HV  DC Vision 12,000 mile transmission, about equivalent to storage losses (0.9720>0.5) Can balance night/day (east-west) and seasons (north-south) Siemens 2007, EPRI, DC_Solutions_EPRI_Conference_09-07_V_1b, slide 47
  • 45. International Transmission • Could be cheaper than storage (capital plus losses) • Removes sudden peaks and valleys due to geographic  distribution (avoids correlated cloud events) • East – West – Extends daylight hours – Eventually could be “24 hour” • North – South – Ameliorates seasonal solar variations (always about the  same output) • Someone with world unification ideas could run with  this one…
  • 46. First Solar PV Modules Module Manufacturing Cost Reduction Roadmap $1.29/W 100%  16‐18% 15‐17% 7‐8% 4% $0.65 ‐ .70/W 3% 50‐55%  Q1 07 Efficiency Low Cost Spending Throughput Plant Scale 2012 Cost/Watt Location Cost/Watt  Target
  • 47. First Solar Balance of System  Roadmap 1/3 of the total balance of  ~$1.56 /W system cost savings are driven  100%  6‐8% by our roadmap to achieve at  least 12% conversion efficiency 12‐14% 2‐4% 5‐7% 6‐8% ~$1.00/W Target 69‐59%  2007 BoS Inverter Mech.  Elect.  Project  OH 2012 BoS Install Install Costs Target
  • 48. Roadmap Result • $1.75/W installed systems cost • With margin, $2/W system price • Well below the $2.5/W goal to make solar  equivalent to coal for a 12‐year program