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The Value of Renewable Energy: Distributed Energy Resource for Microgrid Applications

This article discusses the benefits and challenges of using renewable energy resources in microgrid applications. It also highlights the potential policy needs and opportunities for renewable energy in North Carolina.

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The Value of Renewable Energy: Distributed Energy Resource for Microgrid Applications

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  1. Value of Renewable EnergyDistributed Energy Resource for MicroGrid Applications Alex Hobbs, PhD, PEDirector, NC Solar CenterJune 29, 2005

  2. North Carolina Solar Center • Operated by College of Engineering at NC State University • Created in 1988 as a Clearinghouse for RE Information, Training, Technical Assistance and Applied Research • Sponsored by the State Energy Office, NC Dept. of Administration • Other Funding: Industry, Federal Labs, US DOE, USDA, IREC, Foundations, Other State Agencies & NGOs

  3. An Inclusive Interest in Energy Efficiency and Renewable Energy • Solar • photovoltaics • solar hot water • passive solar • daylighting • Wind • Biomass • animal & crop waste • landfill gas • Biofuels • ethanol • biodiesel • Green Buildings & Sustainable Design • Hydrogen & Fuel Cells • CHP & Distributed Generation • NC IOF Program www.ncsc.ncsu.edu

  4. Database of State Incentives for Renewable Energy • The NC Solar Center hosts DSIRE - a comprehensive source of information on state, local, and utility incentives that promote renewables • www.dsireusa.org

  5. IREC Interconnection Project • The NC Solar Center also hosts the IREC Interconnection Project - information on federal, state and utility net metering and interconnection programs • www.irecusa.org/ connect

  6. The Problem in the Southeast • Little Change = Little Opportunity • No deregulation = no RPS, CAF, net metering, etc. • No simplified interconnection or encouragement of independent power production – perceived generation supply glut • Utilities have no reason to change – maintain the monopoly and get a guaranteed rate of return • Have to fight the system to enter market – rules change at utility discretion to stop change from happening

  7. Southeast has relatively cheap powerRisk of dying from coal fired power plant caused particulates Source: Clean Air Task Force

  8. Barriers facing Renewables • Financing challenges • High first costs • Uncertain long-term commitment to incentives • Uncertainty in RE certificate markets • Unreasonable interconnect requirements • High standby/back-up power costs • RE environmental benefits / fossil & nuclear environmental costs not valued • Siting and permitting delays/uncertainties • Non-core business investment for the customer

  9. Is There Hope in North Carolina? • YES! Four Major Drivers • Politically strong Ag community wants to promote biomass • Air Quality makes strange bedfellows (see NC Clean Smokestacks – environmentalist tourism, health, etc) • Rural jobs in NC rather than WV, KY or middle east • Military Bases need to be sustainable

  10. Key Policy Needs in North Carolina • Portfolio Standards to encourage near market renewables (green power alone won’t cut it) • Net Metering & Simplified Interconnection to support small scale DG, PV and Wind (underway at the NCUC) • Public Building Requirements to raise awareness, supply GP and show state leadership • Institutional Green Power Purchases to support market development • Local Barrier Reforms in Zoning, Permitting, CC&Rs • Tax Credit Modifications to make the RE Credits “tradable” • Public Benefit Funds to Support Market Emergence and Development

  11. Solar Energy

  12. Myth: Solar Can Never be a Big Part of US Energy Supply Solar from 1% of the Mojave Desert can provide the annual energy expected from ANWR. Solar can supply all electricity for the U.S. using a 100 by 100 mile area in the SW.

  13. Whr/m2/day 1000 to 4000 4000 to 5500 5500 to 6500 6500 to 7500 Myth: Solar Energy is Only for the Desert Portland, Maine receives 70% of the solar energy that falls on Las Vegas, NV – photovoltaics can and are used in every state in the United States, including Alaska

  14. Myth: Investment in Solar Technology is Having no Effect Maturing an Energy Source = Time + Money PV ($1.6B)2 Renewables (less than $ 13 B)1 * PV is a $2B per year industry growing over 25% per year Nuclear ($ 25 – $ 50 B)3 Hydroelectric (more than $ 50 B)4 1900 1950 2000 1 Cumulative Federal renewable energy federal appropriations (1999$) 2 DOE PV Program Budget History since 1975 3 Range of cumulative appropriations based on 1998 Nuclear Energy Institute Federal Spending Analysis (1997$) 4 Federal appropriations since 1903 (1999$)

  15. 1980:$1.00/kWh 2000: ~$0.20 cents/kWh 2005: ~$0.12 cents/kWh Myth: Solar Energy is too Expensive PV Increasingly Competitive • Sacramento Municipal Utility District's (SMUD) 2-MW plant (2 acres) • Enough power for 660 Sacramento-area homes • Replaces some nuclear-generated power

  16. Myth: Solar Technologies take more energy to manufacture than the energy they produce

  17. Myth: Solar Technologies Also Pollute the Environment Manufacturing • Small amounts of hazardous materials used in manufacturing are completely contained -- no emissions • PV’s are safe to produce • Solar is silent • Low or no water use The Solar 2 Power Tower, which includes integrated storage to provide baseload/intermediate generation.

  18. 5000 Control Home Net Load: 71.1 kWh 4500 PVRES Net Demand: 15.2 kWh PV Power to Grid: 15.6 kWh 4000 3500 3000 2500 2000 Measured Electrical Demand/Production (Watts) 1500 1000 500 0 -500 -1000 0 2 4 6 8 10 12 14 16 18 20 22 24 Time of Day (EST): June 18, 1998 Myth: Solar Energy is not Available When it is needed Control and PV House Net Load on the Electric Grid, Summer Peak Day: June 18, 1998

  19. The Value of Solar • Flexible -- Either independent or “Grid-tied” • Sized, sited and installed faster • Avoids (or postpones) expensive transmission and distribution upgrades • With storage, a premium power or remote power solution • Provides energy savings and pollution avoidance

  20. Fort Bragg is 251 sq. miles¹ A photovoltaic (PV) array covering 1% of the base would actually only be 0.42% of the total area due to spacing and tilt of the panels At 15% efficiency, this PV plant would produce 406 MW This PV array would almost quadruple the total PV production of the US (140 MW²) and would be 40% of the current world production (1050 MW²) It would cost $2 billion and would produce 500 million kWh/year, enough energy to run over 40,000 NC households a year Rules in NC give a 70% incentive, see DSIRE database Solar Potential www.ncsc.ncsu.edu

  21. Wind Energy

  22. Wind Sizes and Applications • Small (10 kW) • Homes (Grid • connected) • Farms • Remote Applications • (e.g. battery changing, water pumping, telecom sites, icemaking) • Intermediate • (10-500 kW) • Village Power • Hybrid Systems • Distributed Power • Large (500 kW – 6 MW) • Central Station Wind Farms • Distributed Power • Offshore Wind Generation • Stations

  23. Total Installed U.S. Wind Energy Capacity TOTAL: 6,740 MW as of Jan 24, 2005

  24. Cost Nosedive Driving Wind’s Success 38 cents/kWh 2.5-4.5 cents/kWh Levelized cost at excellent wind sites in nominal dollars, not including tax credit

  25. From the Mountains to the Sea Buffalo Mtn, Tn • NC Wind Working Group • Western Wind Program • Appalachian State Energy Center • Dr. Dennis Scanlon • Coastal Wind Program • NC State Solar Center • Ms. Beth Mast Future view of main channel to NC Ports

  26. Coastal wind resourcesare large

  27. Carteret County Opportunities • Open Ground Farms – 46,000 acres (72 square miles) • Class 4 or better winds • Onshore •       Mainland    22,350 acres •       Barrier     20,923 acres • Offshore •       Sound       1,132,078 acres •       State Ocean 530,883 acres • 1.5 MW Turbine - Could install 36 turbines per square mile with 5x7 blade diameter separation • At 30% capacity factor produce over 1,000 MWe equivalent year round output

  28. Who might use this resource?

  29. Biomass Energy Power when you need it.

  30. USDA/DOE Biomass Programs

  31. Policy Drivers • •Rural Development • Climate Change Mitigation • •Energy Security • How do we replace fossil fuel based energy and products with home grown biobased materials?

  32. Biomass Resources in NC • 13th in nation in bioenergy generation • 1.6 million MWh of electricity generated from biomass sources • 1.3 % of electricity generation • Estimated potential: 16 million MWh NREL biomass fact sheet for NC

  33. Advantages of Biomass • Crude Oil => $40 / barrel • Natural Gas => $7 / 1000 cf Twice the price of • Woody Biomass => $50 / dry ton • On a BTU basis at these prices, biomass resources are available for approximately half the cost of oil and gas • Equivalent to low-sulfur coal cost

  34. Disadvantages of Biomass • Coal has an energy content of 950,000 BTU/ft3 • Wood has an energy content of 260,000 BTU/ft3 • A biomass fired generation plant would need to burn 3.7 times the volume of fuel that a comparable coal fired plant would require

  35. Biomass Supply DatabaseDo the study first, transportation will drive the project cost. • Resources Studied • Corn Stover • Wheat Straw • Switchgrass • Hybrid Poplar • Hardwood Logging Residues • Softwood Logging Residues • Hardwood Cull Residues • Softwood Cull Residues • Bark from Mills* • Fine Wood from Mills* • Coarse Wood from Mills* • Construction Waste* • Demolition Waste* • Renovation Waste* • Municipal Solid Waste*

  36. Top 10 Counties - Potential County Dry Tons (<$50) Beaufort 322,439 Halifax 271,037 Bertie 257,011 Duplin 254,271 Northampton 251,302 Wake 225,099 Bladen 209,383 Robeson 205,341 Wilkes 194,787 Warren 188,901 Total 2,379,570

  37. Potential 2039 Mwe Generationat 25% efficiency

  38. Total Biomass Thermal Fuel Value 200x1012Btu/yr 6650 Mwt 1662 Mwe

  39. Wood Biomass Craven County Wood Energy (CCWE)

  40. CCWE Biomass Emissions

  41. Landfill Locations Landfill Gas Potential • Can draw from Fort Bragg Landfill and nearby Cumberland County Landfill in Fayetteville • Fort Bragg Landfill produces enough gas¹ to obtain 0.75 MWe² and 400 tons/hr of cooling² • Cumberland County Landfill produces enough gas to obtain ~3 MWe and over 1500 tons/hr of cooling • Combined potential resource of landfill gas totaling ~3.75 MWe and close to 2000 tons/hr of cooling • Landfill data from US EPA LMOP website and “Landfill Gas-to-Energy Project Opportunities: Landfill Profiles for the State of North Carolina” by US EPA LMOP • Values based on a 27% efficient gas turbine and a 50% efficient heating/cooling system

  42. Ft. Bragg District Heating and Cooling 82nd Airborne Compound Natural gas fired 5 MW Solar gas turbine 1000 Ton absorptive cooler 28,000 PPH HRSG

  43. Distributed Generationand MicroGrids

  44. What is Distributed Energy?

  45. Distributed Energy Resources

  46. CHP Energy Savings

  47. Generation Efficiencies 1 MW 70% CHP Hybrid Fuel cell With CHP 60% CCTG 50% Fuel Cell Micro Turbine 40% GasTurbine Reciprocating Engines 30% Old steam 20% 10kW 100kW 1 MW 10MW 100MW 1000MW

  48. DER Market Scenarios • Back-up generation • Distribution system enhancement • Feeder Relief • Transformer bank relief • Reactive support for the T&D Grid • Serve remote loads • Power Quality • Peak shaving • Energy needs (load growth) and Ancillary Services • Loss reduction • Transmission and distribution deferral • Improve grid asset utilization • Local micro-grid • Interconnected local micro-grids • Interconnected local micro-grids and utility distribution systems

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