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Posts from the ‘Electricity’ Category

German Power Grids Increasingly Strained

With a steep growth of power generation from photovoltaic (PV) and wind power and with 8 GW base load capacity suddenly taken out of service the situation in Germany has developed into a nightmare for system operators.

The peak demand in Germany is about 80 GW. The variations of wind and PV generation create situations which require long distance transport of huge amounts of power. The grid capacity is far from sufficient for these transports. The result is a remarkably large number of curtailments of RES (Renewable Energy Sources).

Reports from the European Network of Transmission System Operators for Electricity (ENTSO-E)[1] and the German Grid Agency[2] reflect concern for the operational security of the power system. The risk of a prolonged and widespread power blackout was earlier recognized by the German Bundestag and discussed in an interesting report[3]

This note will present main conclusions from the three reports combined with data, collected from the German system operators.

via The Oil Drum | German Power Grids Increasingly Strained.

US Solar Financing on the Brink of Transformation

May 24, 2012 – Bethesda, Md. – Financing of US solar projects is in the midst of a transformation, with new business models, new investors, and new financing vehicles gaining sway, according to new research by specialist research firm Bloomberg New Energy Finance commissioned by Reznick Group.

US solar projects have historically been bankrolled by some combination of energy sector players, banks, and the federal government, but the landscape is rapidly changing. New business models are emerging with an emphasis on third-party financing. New investors, including institutional players, are entering. And new financing vehicles such as project bonds and other securities are being assembled to tap the broader capital markets.

Bloomberg New Energy Finance, the leading provider of news, data, and analysis on clean energy, water, power, and the carbon markets, has worked with Reznick Group, a national accounting, tax, and business advisory firm, to describe this ongoing evolution of US solar financing: where the market is today, where it is heading, and what’s behind this important transition.

The resulting report, “Re-imagining US solar financing”, can be downloaded here.

via US Solar Financing on the Brink of Transformation.

Sandia Releases Web Tool to Evaluate Energy Storage Options

Sandia National Laboratories and the Department of Energy have released a new tool to help utilities, developers and regulators identify the energy storage options that best meet their needs.

Partnering with DNV KEMA, a global testing and consulting firm, Sandia is releasing Energy Storage Select, or ES-Select, software under a public license to the company. The tool makes it easier to conduct a quick, high-level analysis of energy storage options and determine the value of energy storage technologies for a specified application, which developers say will increase the adoption of energy storage technologies.

“ES-Select is the first of a suite of easily accessible web tools to help potential users and regulators to make decisions on energy storage options in specific applications,” said Imre Gyuk, program manager of DOE’s Energy Storage program.

The application is available for free download on Sandia’s Energy Storage website. “This tool is designed to help users to understand at a basic level what storage can do. If it looks beneficial from a cost standpoint, they can explore the options further,” said Sandia project manager Dhruv Bhatnagar.

via Sandia Releases Web Tool to Evaluate Energy Storage Options | PeteSinger.

What Ails Geothermal? Let’s Count the Ways

Geothermal is in many ways the best option when it comes to generating clean, carbon-free energy.

The problem comes in the details.

The chasm between the promise and challenges facing geothermal are underscored in the latest annual report from the Geothermal Industry Association. Geothermal plants–which essentially extract heat from below the surface of the earth and use it to create steam for generators at power plants– account for 11.2 gigawatts of power capacity worldwide. Approximately 3.1 gigawatts worth of geothermal plants exist in the U.S.

Unlike wind or solar, geothermal power is not intermittent. Geothermal plants provide consistent, baseline-quality power decade after decade. A gigawatt of capacity of geothermal power is thus equivalent to 3 gigawatts of solar or wind. Geothermal wells only extract a fraction of subterranean heat as well so the environmental problems are somewhat minimal. Another plus: geothermal plants make little noise and occupy comparatively little real estate. Reno, my home town, gets approximately 20 percent of its power from the Galena geothermal plant operated by Ormat that sits behind a series of rolling hills at the southern edge of the city. Many locals don’t even know it’s there.

via What Ails Geothermal? Let’s Count the Ways – Forbes.

Citi eyeing solar securitisation deal this year

Citigroup is closing in on a securitisation deal for a residential solar rooftop project this year, according to a company official.

The market is expecting to see solar securitisation transactions either this year or in early 2013, Trevor d’Olier Lees, director of the US utilities and infrastructure practice of Standard & Poor’s (S&P) Rating Services in New York, told attendees of the Environmental Bonds conference in New York on Wednesday.

“We can say publicly that conversations with bankers, with developers are happening right now,” he said. “It’s not theoretical. It’s not hypothetical.”

“The momentum has been building,” d’Olier Lees continued. “The earlier conversations had a lot of gaps. The newer conversations are much more solid.”

Rooftop solar

Rooftop solar: coming to a securitisation near you (Photocredit)

Citigroup has been working on developing a securitisation bond structure for large pools of residential solar projects, said Stuart Murray, director of infrastructure and project finance for Citigroup. He said he hopes Citi can complete such a deal in 2012.

“I think we and a lot of other firms are looking to crack that nut,” Murray said. “It would be an incredibly efficient source of financing to stimulate the deployment of residential rooftops.

via Environmental Finance | News | Citi eyeing solar securitisation deal this year.

What to Make of Geothermal’s Numbers

The Geothermal Energy Association’s newest report on global growth is an admirable effort on putting on a happy face — but its numbers tell another story.

The association reports, for instance, that in 2010 geothermal energy generated “twice the amount of electricity as solar energy did worldwide.” The world’s installed grid-connected PV capacity went from 7.4 gigawatts at the end of 2009, to 16.8 gigawatts at the end of 2010, to 29.7 gigawatts of grid-connected PV at the end of 2011.

The world’s installed geothermal capacity, as of May 2012, was 11,224 megawatts (11.2 gigawatts), up from 10.7 gigawatts of installed capacity in 2009 (according to the IEA). It would appear geothermal did have the lead sometime in 2010, but comparing the sectors’ growth rates is not flattering to geothermal. (Geothermal obviously has an advantage when it comes to generating kilowatt-hours due to its higher capacity factor.)

via What to Make of Geothermal’s Numbers : Greentech Media.

BrightSource: The Rumors of Concentrating Solar Power’s Demise Are Wrong

The seemingly endless stream of cars coming out of BrightSource Energy’s 370-megawatt Ivanpah solar power plant complex bolsters the company’s recent declarations about its growth and the progress of the U.S. concentrating solar power (CSP) sector.

“We’ve got 1,700 [people] at work,” said BrightSource Vice President for Government Affairs and Communications Joe Desmond. He added, many are from California’s Inland Empire, where unemployment reached 15 percent at the height of the Great Recession. “These are family-wage jobs. They’re electricians, pipefitters, welders, heavy equipment operators, engineers and biologists.” There is also a helmets-to-hardhats program designed for veterans.

“People talk about the CSP industry being dormant or paused,” explained BrightSource Communications Director Keely Wachs. “Last year, PV had a banner year. The industry installed 868 megawatts in the U.S.,” said Wachs. “Now, there are 1,200 megawatts of CSP under construction in the U.S. alone, which will mean a 120 percent increase by 2013 over the 530 megawatts of operational CSP in the U.S. today.” And that, he added, “is not including the 3,000-plus megawatts under development.”

via BrightSource: The Rumors of Concentrating Solar Power’s Demise Are Wrong : Greentech Media.

Building Wind Energy Can Save Midwestern Consumers $200 Per Year

We’ve all heard that wind energy is too expensive, and that massive investments in wind will drive up electricity rates for consumers. This argument is based on the belief that wind energy is more expensive on a per kilowatt-hour basis than traditional fossil fuels. While even this premise is up for debate (for example, wind is now the least expensive option for new generation for some utilities in the upper Midwest), the bigger problem is that this argument ignores how electricity markets actually work.

According to a study by Synapse Energy Economics that was released today, electricity markets are structured in such a way that wind power will actually lower wholesale power prices, which can ultimately reduce consumers’ electric bills. The Synapse study, which was released at an event organized by Americans for a Clean Energy Grid, finds that making substantial investments in wind power (and the necessary transmission lines to bring that wind to market) could save the average Midwestern residential consumer as much as $200 per year in 2020.

The key to understanding how this works is something called “price suppression”. In competitive power markets, like the one managed by the Midwest Independent System Operator (MISO), power is sold through an auction. Generators bid in a certain amount of power at a certain price. When the market is functioning properly, the price is always the marginal cost of operating the power plant. For a natural gas plant, the marginal cost is primarily fuel, with some amount of labor and other expenses. For a wind turbine, the marginal cost is effectively zero, since there’s no fuel cost and there are minimal other operating expenses. MISO has a supply curve, ranging from very low marginal cost resources like wind, through nuclear and coal, and ultimately ending at very expensive power from inefficient peaking plants fired with natural gas.

via Building Wind Energy Can Save Midwestern Consumers $200 Per Year | ThinkProgress.

Artificial leaf device produces hydrogen in water using only sunlight

Scientists and researchers from the Photovoltaic and Optoelectronic Devices group from the Universitat Jaume I, led by Professor Juan Bisquert, have developed, using nanotechnology, a device with semiconductor materials which generate hydrogen independently in water using only sunlight.

This technology, which has been named artificial photosynthesis, was inspired by photosynthesis which occurs naturally (a process in which plants use sunlight to transform organic material into organic compounds, freeing chemical energy stored in the bonds of the molecule adenosine triphosphate-ATP, and obtaining energetic compounds such as sugars or carbohydrates).

The efficient production of hydrogen using semiconductor materials and sunlight constitutes a crucial challenge to make a paradigm shift towards sustainable energy technology, using inexhaustible resources that are environmentally friendly. “Although the energy efficiency of the device is still not sufficient enough for us to consider marketing it, we are exploring various ways to improve its efficiency and to show that this technology represents a real alternative to meet the energy demands of the 21st century,” comments Sixto Giménez, one of the researchers responsible for the investigation.

Hydrogen is an extremely abundant element on Earth’s surface, but in combination with oxygen: water (H20). The hydrogen molecule (H2) contains a great amount of energy that can be released when burned due to the reaction with atmospheric oxygen, creating water as the result of this combustion process. In order to convert water into fuel (H2), the H2O must be broken down into its separate components and so that the process can be carried out in a renewable way (without using subsoil fossil fuels), it is necessary to use a device which relies on solar power, and with no other assistance, to provoke the chemical reactions to break the water and form hydrogen in a way similar to leaves on plants. For this reason these devices are named artificial leaves.

The device is submerged in an aqueous solution which, when illuminated with a light source, forms hydrogen gas bubbles. Firstly, the research group used a solution with an oxidizing agent and studied the evolution of hydrogen produced by photons. “Now the biggest challenge,” comments Iván Mora, member of the team developing the solution, “is to understand the physical-chemical process which is produced by the semiconductor material and its interface with the aqueous medium in order to streamline the device process.”

The development of the artificial leaf is a great scientific challenge due to the difficulty posed by the selection of materials that will be used in the process, working continuously and not decomposing. Currently, the Photovoltaic and Optoelectronic Devices group from the Universitat Jaume I is one of the few research groups on an international level that has shown the viability of a device with these characteristics, together with the North American laboratories from MIT in Boston or NREL in Denver. The research group leader, Juan Bisquert, comments that “in comparison to other devices, that which has been developed by the UJI has the advantage of low production costs and a large collection of incident photons of light, used in the production of hydrogen photons in the infrared spectrum.”

via Artificial leaf device produces hydrogen in water using only sunlight.

Have Wind, CSP, and PV Turned Against Each Other?

The three major investor-owned utilities (IOUs) in California are well on their way to meeting their obligations to provide a third of their power from renewable sources by 2020. As a result, they and the California Public Utilities Commission (CPUC), their regulators, are no longer thinking only about the quantity of the renewables they want. They are starting to think more carefully about the quality of the renewables and how they will fit into utility portfolios.

As of May 2012, according to the CPUC, Pacific Gas and Electric (PG&E) had procured renewables capacity equal to 20.09 percent of its 2011 electricity. San Diego Gas and Electric (SDG&E) had procured 20.80 percent, and Southern California Edison (SCE) had 21.07 percent. At recent conferences in San Francisco, San Diego, and Phoenix, renewables investors repeated, off-the-record, that the IOUs may have as much as three-quarters of their 2020 obligations under contract.

To determine the best economic choices to fill out the remainder of the renewables portfolio, the CPUC is considering a new formula. In his April 5 Rulemaking, Commissioner Mark Ferron described a redefinition of the 2004 “least cost, best fit” formula for capturing the full range of costs and benefits of renewables selected to meet the RPS.

via Have Wind, CSP, and PV Turned Against Each Other? : Greentech Media.

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