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AWEA To Use Green Tags For WINDPOWER 2002
AWEA announced on May 17 that it will use wind-based green tags for WINDPOWER 2002, the largest-ever U.S. conference and exhibition. The green tags will be donated by the Bonneville Power Administration (BPA) to offset pollution from the conference's electricity consumption. AWEA is highlighting the use of green tags at its conference to draw national attention to this emerging and convenient way to purchase green power. "Through the use of green tags, WINDPOWER 2002 will support the generation of as much electricity from wind farms as it uses," explained executive Director Randall Swisher. "In effect, it is as though we were purchasing clean energy directly from those wind farms to power the event." The green tags used for WINDPOWER 2002, which is being held June 2-5 in Portland, Ore., are generated from the Stateline, Condon, and Foote Creek wind farms in Washington, Oregon, and Wyoming, respectively. The tags certify the production of 45,000 kWh of electricity, the amount needed to power the rooms used by WINDPOWER 2002 conference and exhibit halls throughout the duration of the event. Some 8,474 pounds of carbon dioxide are emitted when that much electricity is generated from the average local electricity mix, according to a Carbon Dioxide Calculator developed by the Bonneville Environmental Foundation (BEF), which sells green tags. Carbon dioxide is the leading greenhouse gas associated with global warming. A green tag certifies that a given amount of electricity from a wind farm or other renewable energy source has been produced, thereby reducing the need for electricity from a more polluting power plant. The green tag represents the avoided pollution, not the electricity itself, and its purchase allows customers to support renewable energy generation even though that power may not directly reach their meter. "Green tags offer businesses, homeowners, and other electricity customers a simple and convenient way to support investments in wind and other forms of renewable energy," said Swisher. "AWEA is proud to use green tags from local wind farms for the WINDPOWER 2002 Conference and Exhibition." BPA is a federal agency that markets wholesale electrical power and operates and markets transmission services in the Northwest. About 40% of the power used in the region comes from federally owned hydropower projects marketed by BPA. BPA is also investing in wind farms in the region to diversify its power portfolio. BPA sells green tags from the wind farms to the nonprofit BEF and to utilities with green power programs. Individual consumers can purchase green tags directly from their utility or from BEF. More information on green power and green tags is available at http://www.awea.org/greenpower/index.html. More information about BPA is available at http://www.bpa.gov. Source: AWEA Wind Energy Weekly 5/17/2002.
Utilities' Green Power Programs Cater to Non-Residential Customers, A Chartwell Study Finds
Non-residential customers account for up to 38% of green power sales, and energy companies are jumping to fulfill this need: 8% more utilities are offering C&I customers green power this year than in 2001, according to Chartwell research published in Selling Green Power to Non-Residential Customers, a new industry report. Chartwell's 2002 survey of 50 energy companies regarding their C&I product/service offerings found that 36% are offering green power to C&I customers, another 16% are in the planning stages of a C&I green power program, and 14% are considering implementing one. Chartwell's data also reveals that municipally owned utilities are much more likely to offer green or renewable power to their C&I customers than cooperatives or investor-owned utilities (IOUs). In addition, whether an energy company's market is deregulated or not has no bearing on the rate at which IOUs offer renewable energy.
Although the transaction cost may be higher to market green power to a large customer, it can nevertheless be more cost effective. The cost to acquire that customer, on a per kWh basis, can be much lower than for mass marketing to residential customers. In addition, large customers have secondary marketing or marquee value. The promotion or recognition of a large customer purchasing green power can raise public awareness of the option, legitimize the choice, and encourage residential and other non-residential customers to buy green power. According to the report, marketing green power to C&I customers requires a strategy that should take into account the impact of the extra cost of green power, providing ways to mitigate that increase in costs, public relations benefits, civic responsibility, impact on employee morale, first-mover advantage, the bandwagon effect, internal champions and accreditation.
For information on this study call 800.432.5879 or 404.237.9099, or visit www.chartwellinc.com. Source: PR Newswire via PowerMarketers.com 5/22/2002
For more information: http://www.eren.doe.gov/greenpower/ or http://www.nwlink.com/van/greenlnk.html
Montana Wind Harness Project 'On Track'
Ameresco Inc., the 99% owner of Montana Wind Harness (MWH), announced today that Montana Wind Harness has signed long-term leases for its major wind sites in Montana. This is one of several major milestones successfully completed by Montana Wind Harness in the development of 150 megawatts of wind power in the state. "With these signed leases in hand," said Doug Barba, Executive Vice President of Ameresco, "we are on schedule to begin construction of this $150 million project later this fall." "We started out looking at 13 major sites in Montana," said Barba, "As we gathered wind data, those 13 sites were narrowed to locations in Cascade, Glacier, Golden Valley, Judith Basin, Stillwater and Wheatland counties. We now have signed long-term leases for our key sites. Each of these sites has commercial wind resource potential. We have complete data for the site at Cut Bank, in Cascade County, and we continue to gather data from the other sites. So far, the wind data from the other sites is comparable to the Cut Bank site, and confirms the potential of Wind Energy in Montana. We will complete our analysis of our other sites in the next three months. The main point is Montana Wind Harness has the land under lease to complete the project pursuant to the terms of our contract with NorthWestern Energy." The Montana Wind Harness project employs "state-of-the-art" European wind turbine technology that is far different from the turbines Montanans have previously seen. Previous generations of wind turbines were relatively small and difficult to maintain. The large, up to 1.5 megawatt turbines, that Montana Wind Harness will install are graceful giants that have been proven in installations across Europe. Each turbine will generate enough electrical power for more than 1300 homes. "Each of our sites will have 35 to 40 of these turbines," Barba said. "We ultimately will develop three sites from those that are under consideration." Montana's wind has been harnessed by each generation of Montanans. For over 100 years, Montanans have used our wind to pump water for livestock. In more recent years, wind turbines near Livingston have been used to generate electricity on a limited scale. "Our current project is much different," said Barba. "Montana Wind Harness will erect up to 115 turbines, and generate over 100 times the power of the Livingston turbines. We view this as only the start for wind power in Montana. The owners of Montana Wind Harness hope to develop future projects in the state after we have put these turbines successfully on-line." "The analysis of wind data has been most gratifying," said Barba. "We have installed numerous wind data collection instruments call anemometers. By using correlating data from nearby sites, Montana Wind Harness is developing the appropriate data necessary to finance the project. Our consultants are excited about working with us and our lenders to show the commercial viability of our sites. The Montana Wind Harness project will develop three large scale wind sites in Montana once the Public Service Commission approves the Default Supply Rate Case presently under review" said Barba. Montana Wind Harness plans to close bank financing this summer and begin construction in the fall.
CONTACT: Ameresco Inc. Jeanette Coleman-Hall, (508) 661-2230. Source: Business Wire 5/20/2002 via PowerMarketers.com 5/20/2002.
Wave Power Stations Planned
The first three offshore wave power stations are to be built in the outer Hebrides with government backing in an attempt to give the UK a lead in a technology which has the potential for producing 20% of the country's electricity. The pounds 2.3m support for Wavegen, an Inverness based company, will allow three floating wave power stations to be anchored off the Isle of Lewis to see if they can withstand storms and produce a consistent supply of power. Brian Wilson, the energy minister, said he hoped the company would utilise the disused oil industry construction yard at Arnish on Lewis to build the stations. Allan Thomson, managing director of Wavegen, said: "Marine renewable energy is the next big opportunity in the electricity market. There is potential along the west coast, particularly Scotland and the West Country." The technology, which uses an oscillating water column to generate power, has been demonstrated at onshore stations in Islay and at Pico Island in the Azores. The stations at the moment produce about the same power as a wind turbine, about one megawatt, but can be scaled up as the technology develops. The idea would be to have dozens of them anchored in shallow water offshore feeding into a grid in the same way as off-shore wind farms will operate. Mr Thomson said that some island communities using diesel to make power were paying 20p a kilowatt hour for electricity. Wave power can be produced at 5p a kilowatt hour and he believed the price would fall as the technology developed. Source: The Guardian 5/21/2002 via Mary Jane Parks 5/21/2002.
Bioenergy Research Starts on the Farm
Researchers at the US Department of Energy's Idaho National Engineering and Environmental Laboratory are partnering with universities and industry to make critical advancements in the fields of agriculture-based bioenergy and bioproducts. A key focus area for the team is research and development to more fully use the renewable materials from wheat and other crops to provide many of the basic chemical building blocks to produce fuels and a wide range of consumer goods normally produced from petrochemicals. This concept is the 'biorefinery.' Unlike petroleum refineries, biorefineries break down agricultural crops and separate them into chemical building blocks. The building blocks are used to make products such as fuels and chemicals for plastics and adhesives. Biorefineries are more environmentally friendly because the growing process of crops reuses the greenhouse gas (carbon dioxide) released by fuels and chemicals produced from biomass. These crops are used in biomass refining and the cycle continues. "This will alleviate our dependence on greenhouse-gas-producing foreign oil. Additionally, new uses and new markets for the whole wheat crop (i.e., straw and grain) could potentially increase the crop's value sufficiently to put our nation's wheat growers back in the business of profitably producing a wheat crop," says Dusty Tallman, past president of the National Association of Wheat Growers, in a letter last summer to the US Department of Energy's Office of Energy Efficiency and Renewable Energy. "The ripple effect of a profitable farmer creates a solid foundation for sustainable rural economic development." Focusing on the estimate that more than 50 million tons of usable wheat straw goes to waste in the United.States each year, the INEEL is working to develop selective harvest technologies for crop residue collection. This crop residue is a sustainable annual resource. "This shows that the biorefinery starts with the harvester," said Reed Hoskinson, one of the INEEL principal scientists on the project. Some of the advantages of straw are: it is a readily available commodity; farmers already accept straw harvest practices; and there are harvesting, handling and storage systems in place to use large quantities of straw, Hoskinson said. But straw also poses challenges relating to its use in a biorefinery; notably, the energy-inefficiency of 'multiple-pass' harvesting (once for the grain, a second time for the straw.) "Not all parts of the plant are of equal value," said J. Richard Hess, another principal scientist on the project for the INEEL. The predominantly fibrous straw stem, high in cellulose, is of greater value for bioenergy, biofuels, and bioproducts, while the remaining components (leaves, sheath, nodes, awns, hulls) would be better used by being left in the field to maintain soil organic matter and contribute soil nutrients. For several years, the INEEL has worked with a major manufacturing company and Iowa State University to develop a single-pass, multi-component combine that will separate both the grain and stems from straw (see cover picture). The research is focusing on reducing harvesting costs by reducing the harvesting to a single pass across the field, on using straw components for the most desirable end-use and on increasing the total biomass available for harvest. This new technology under development includes using imaging systems to create visual images of flows within the combine as well as Particle Image Velocimetry (PIV) analysis. The PIV data are the inputs and validation for a "Fluid Systems Virtual Engineering" tool set for biomass separation. This process allows viewing of the experimental and computational data using virtual reality systems and development of real-time "what if" tools to coordinate the harvesting separation process. "The coupling of the physical and fluid dynamics modeling in virtual reality is greatly aiding in the design of the multi-component harvester," said Tom Foust, one of the INEEL's principal engineers on the project team. The INEEL is also looking at ways to improve harvesting equipment by designing small-load test equipment to test biomechanical properties of straw and use that data to optimize mechanical separation equipment. Current tined, rotor and conventional threshing mechanisms tend to break the straw nodes to varying degrees and make the straw break apart. Another area is development of new plant varieties with the desired stem characteristics. This involves identifying the specific tissues and molecular compositions responsible for the stem's strength or failure. "The straw stem's molecular composition determines both the biomechanical properties and the sugar yields of the crop," Hess said. The INEEL is working with researchers at the University of Idaho to create and select a down-regulated wheat line with improved biomechanical harvesting properties and greater fermentable sugar yield per ton of straw stems.
In the area of processing, the complexity and capital costs associated with separation and purification are major operational barriers in the conversion of crop-based renewable resources into value-added chemicals and fuels. In 2000, Amalgamated Research, Inc. (ARi,) in Twin Falls, Idaho, received a three-year grant to support a new biomass refining system for purifying and separating biomass subcomponents (sugars or other chemical building blocks). The grant is part of a federal effort under the US Department of Energy¹s Office of Industrial Technologies Industries of the Future program to stimulate the nation's bio-based products industry. Currently, biorefineries are marginally effective due to their high cost. The goal of the research partnership is to reduce capital equipment costs of biomass purification and separation systems by ten-fold. The benefit of this is a potential 25 percent increase in overall economics efficiency of the biomass refinery process. The availability of low-cost and efficient membrane and chromatography systems will open the door to a myriad of applications in the food, biotech and chemical industries. "One example of a prime candidate for this technology is acid hydrolysis separation in the bio-energy field," said Dennis Costesso, vice president of ARi. Acid hydrolysis separation is a process where biomass is dissolved into its individual sugars. Then, the advanced separation systems purify these sugars for use in biofuels and bioproducts. The INEEL is a science-based, applied engineering national laboratory dedicated to supporting the DOE's missions in national security, energy security, environment and science. The INEEL is operated for the Department of Energy by Bechtel BWXT Idaho, LLC. Source: BioEnergy Update May 2002.
ORMAT Wins Costa Rican Geothermal Contract
ORMAT recently announced it has reached an agreement with Instituto Costarricense de Electricidad (ICE) for equipment supply for the construction of a geothermal power plant. Under the agreement, ORMAT will supply the power plant equipment required to build the Miravalles V Geothermal Power Plant.
The geothermal project is part of the "Electric Development Program III," which was financed through the Interamerican Development Bank (IDB). ORMAT said the contract includes the delivery of two ORMAT Energy Converters, construction materials and engineering services. ORMAT expects the contract obligations to be fulfilled by the end of the year. ICE said the completion of the project will result in the addition of 18-megawatts of power generation capacity to the existing Miravalles power project without necessitating the drilling of new wells or increasing the overall steam consumption. The new power plants will consist of two "binary-cycle, water-cooled, non-polluting, fuel-free energy converters" that will be powered by the hot brine discharge from existing power plants in the area. ORMAT said the power stations will be configured to return 100 percent of the brine back into the ground to make sure that the resource is not depleted. Source: EIN Renewable Energy Today 5/12/2002.
RMI Helping the Cutting Edge of "Turbo-machinery"
Although RMI's Amory Lovins is perhaps best known for his role as a cross-fertilizer of energy and resource efficiency, he's also a recovering experimental physicist and likes to stay abreast of the latest technical developments in efficiency. Recently he became an advisor to Pax Fluid Systems, Inc., of San Rafael, California. Founder Jayden Harman is " an Australian naturalist who is an avid diver, and a cutting-edge designer using biomimicry," according to Lovins. After decades of study of the plant and animal kingdom, including thousands of hours underwater, Harman developed and patented a completely new type of impeller (a spinning shape that moves the fluid around it). Lovins suspects it could revolutionize such fluid-moving machinery as pumps, fans, propellers, mixers, and turbines. Pax's impeller design is based on a logarithmic spiral known as a Phi Ratio, Fibonacci Sequence, or Equiangular Spiral. In three dimensions, these patterns are called recessive spirals. They occur in many places in nature, yet few designers have ever mimicked them. ("To visualize a recessive spiral, picture the inside of a conch shell," Harman noted). Two of the many such shapes are shown above. When rotated in water or air, the impeller makes the fluid flow smoothly in a vortex, like water exiting a bathtub. In contrast, the most common kinds of conventional pumps and fans sling the fluid outward and bounce it off a curved wall to make some of it move in the desired direction. This more violent and indirect method causes turbulence and hence is inherently less efficient than laminar flow. By smoothly accelerating the fluid centripetally (towards the center) with very little turbulence, Pax's impellers lessen vibration and reduce or even reverse heat gain, while delivering more thrust with virtually no cavitation (causing flow so turbulent that the water is torn apart and bubbles form). While design optimization continues, Harman has already found that an impeller based on a recessive spiral can spin at 6,000 rpm underwater with no cavitation. "You can't do that even with a smooth cylinder because of the surface drag!" Lovins said. Harman has also been exploring some counterintuitive applications. When one of his impellers is attached to the front of a submarine hull, rather than slowing down the craft due to increased surface area, it makes it go about 11 percent faster. Lovins has been advising Harman informally for several years and is now an inaugural member of Pax's Advisory Board, helping get the concept widely applied. Pax has also supplied prototype impellers to a natural design exhibit at Nike headquarters organized by RMI board member Janine Benyus, the author of Biomimicry. (www.biomimicry.org). "Not only are impellers of this shape potentially far more efficient," noted Lovins, "they are remarkably quiet, and gentle on anything that goes through them‹like, say, fish through a hydroelectric turbine. This could be very big, and has many obvious applications. If this invention‹or rather, rediscovery of nature's genius‹fulfills its promise, it could be one of the greatest technical breakthroughs in energy efficiency in a long time." Source: Cameron M. Burns, Rocky Mountain Institute, 970.927.3851, May 19, 2002.
Cannon Starts Construction on New 41-MW Palm Springs Project
On May 15, Cannon Power Corp. commenced construction of its 41-MW Cabazon wind project in the San Gorgonio Pass area of Palm Springs, Calif. The project will consist of 62 Vestas 660-kW turbines and will sell electricity under a long-term power purchase contract with the California Department of Water Resources. Project completion is scheduled for August. "Given the disruptions in the California energy market over the past year or so, it has been quite a challenge to bring even a robust project like Cabazon into production," said Gerry Monkhouse, Cannon's Chairman. "Being able to accomplish this is, in my opinion, a credit to the strong development team we assembled. We were also significantly helped by Babcock & Brown to bring this project into reality." In addition to serving as project developer, Cannon Power will also be the project's EPC (engineer, procure, construct) contractor. Babcock & Brown served as financial advisor to the project as well as providing bridge lending and equity support. The New York branch of Bayerische Landesbank is providing construction financing Shell WindEnergy has agreed to acquire the project upon completion. The acquisition boosts Shell WindEnergy's capacity in the U.S. to 171 MW and is a key component of the company's aim to become a leading player in the wind sector. "This deal gives us a stake in the San Gorgonio Pass, which is considered to be one of the best areas in the U.S. for wind energy development," said David Jones, Chairman of Shell WindEnergy, Inc. Combined with our existing wind parks, we are demonstrating our commitment to being a major player in the U.S. wind sector. At the same time we're building up a strong team of people based in the U.S. and Europe who are busy negotiating deals and scouring our chosen markets for attractive business opportunities."
Cannon Power has Developed, Constructed, owned, and operated wind energy projects in the U.S. and Europe since the early 1980s. It currently is developing other projects in Spain, Greece, and various other European countries, as well as in the U.S. Shell WindEnergy operates two other wind parks in the U.S., the 50-MW Rock River I plant in Wyoming and the 80-MW White Deer project in Texas. Shell is currently developing or evaluating more than 3,000 MW of wind energy projects in the U.S. and Europe. For more information, contact Gary Hardke, Cannon Power Corp. managing director, phone (858) 756-0472, e-mail ghardke@compuserve.com, or Michael McGarry, media relations for Shell WindEnergy, Inc., phone (212) 218-3107. Source: AWEA Wind Energy Weekly 5/17/2002.
Sharp Announces Entry Into United States Solar Photovoltaic Market
Sharp, the world¹s largest photovoltaic manufacturer and marketer, announced today that it is entering the United States solar photovoltaic market. This follows the emergence of the United States as the latest country, after Japan and Germany, to establish a material solar market based upon grid-tied applications. The Huntington Beach, California base, already a major distribution center for Sharp in the United States, will have responsibility for both the North and South American PV markets. Initial market focus will be on the United States. Sharp expects to achieve a double-digit share of the market within 12 months of operation. This equates to around 5 Megawatts of product. Sharp marketed over 70 Megawatts of PV products worldwide in 2001 and already has a market share approaching 45% in Japan and 19% worldwide. During the first year of operation in the US, marketing will be based on components¹ sales, but thereafter on PV systems. However, Sharp is careful to emphasize that their approach to PV systems will be distinctive. Ron Kenedi, General Manager of the new Huntington Beach based Americas operation explained, "we will listen to the customer, and make products the customer wants. Often, the voice of the customer gets lost in what the laboratory scientists and engineers have to say." Sharp believes that it's core competence as an electronics company will be a key source of competitive advantage. "Our products will be pre-engineered in concert with each other," he added. Sharp will market integrated products that combine their technology and manufacturing capability in inverters and LCD panels together with their solar modules. It expects to have Underwriter Laboratories listing for these products in 2003. While most PV manufacturers in the US market have seen their largest grid-tied demand come from large commercial projects, it is clear that Sharp will also bring a greater emphasis on
residential applications. This is a characteristic of the Japanese market, the biggest in the world. Sharp expects to engage with all parts of the housing industry in order to achieve this. Kenedi noted the importance of the synergy in Japan between government, manufacturers and access to market and sees their experience in this area as an aspect of their skills that can help build the US solar market. By the end of 2002, Sharp expects to have colored solar cells available, initially in gold and dark blue, together with triangular modules, already popular in the Japanese residential market. Sharp will initially market five solar module types: 80 Watt, 123 Watt, 125 Watt, 160 Watt and 165 Watt. Of these Sharp labeled solar modules, Kenedi expects the 165 Watt model to be the biggest seller. These modules types have recently secured the requisite industry approvals and standards for operation in the United States. The high voltage 125 Watt, 160 Watt and 165 Watt modules will target the grid-tied market, while the remaining 12 Volt models will be directed to off-grid applications. During the first year, the emphasis will be on maintaining a very low overhead in Huntington Beach. Sharp¹s focus will be on large customers and it will market primarily through indirect channels. It expects to start with four staff in Huntington Beach and will aim to build a strong Distributor and Contractor/OEM partner network. Acquisitions are unlikely to be a major feature of this initiative. "It will be key that the Distributors bring extensive warehousing, engineering, credit and an ability to forecast purchasing volumes," said Kenedi "We are looking for our Contractor and OEM partners to have engineering capability, contractor licenses, and a capability to purchase and handle large volumes." While Sharp expects initially to import its cells and modules, it will examine opportunities to locate manufacturing closer to customer bases as markets mature and grow.
Source: SolarBiz 5/14/2002 via Solar e-Clips 5/14/2002.
Study Examining the Use of Bio-Based Fuels with Fuel Cells Now Complete
The Northeast Regional Biomass Program, in conjunction with XENERGY, Inc., has announced the completion of a comprehensive study examining the feasibility of utilizing bio-based fuels with stationary fuel cell technologies. The study can be downloaded at no charge from the Northeast Regional Biomass Program web site at: http://www.nrbp.org/. The study, Toward a Renewable Power Supply: The Use of Bio-based Fuels in Stationary Fuel Cells, focuses on seven biomass energy conversion technologies and the bio-based fuels they produce: syngas from biomass gasification; landfill gas; digester gas; ethanol; pyrolysis oil; biodiesel; and MTHF from levulinic acid. The study also examines the four main types of stationary fuel cells currently under development, emphasizing the potential for each to utilize bio-based fuels as an energy source. Outlined in the report are the key technical issues that have impacted and will continue to impact the potential use of bio-based fuels in fuel cells, the associated challenges and opportunities, and recommendations for ways to promote the increased use of bio-based fuels in stationary fuel cells. For more information, contact Rick Handley, Director of the NRBP at (518) 899-9572. For questions about the study itself, contact Chris Clark, XENERGY, Inc. at +1 781 273 5700 ext. 314, or cclark@xenergy.com. Source: BioEnergy Update May 2002.
California Governor Davis Unveils Energy Plan
Fearing a repeat of the rolling blackouts that crippled California last year, Gov. Gray Davis unveiled a conservation plan aimed at keeping the lights on in the nation's most populous state this summer. Davis said the state would renew a popular advertising campaign aimed at encouraging conservation and expand a program of consumer rebates on energy-efficient appliances to help save electricity in months when demand for power typically soars as residents crank up their air conditioners. See more at: http://www.newenergy.org.cn/english/shownews.asp?id=2026. Source: Alliance to Save Energy 5/22/2002.
ABI Study Sees Major Expansion Ahead for Distributed Generation On a Global Scale
Global distributed generation capacity will increase from 20,000 MW (megawatts) to near 300,000 MW by 2011 according to "Distributed Generation -- Global Market Analysis, Technology Assessment and outlook", a new study by Allied Business Intelligence (ABI). "Distributed generation (DG) markets have to be reexamined after Enron, the California energy crisis and the uncertainty in the Middle East. Now power quality and reliability issues are proving themselves to be crucial," said Atakan Ozbek, Director of Energy Research and author of the study. "Our study demonstrates that the need for DG is certain, yet the emerging technology manufacturers and developers and the governments across the globe are two crucial stakeholders that must speed up their rollouts in this decade," added Ozbek. One of the key findings in the study is that the incumbents (reciprocating engines and small gas turbines) will keep their dominance through 2005-2006. By 2005, fuel cells will be penetrating commercial markets across the globe starting in North America, Europe, and Japan. The study also shows quality power and industrial power supply markets are expected to see higher growth rates than residential markets. Industrial markets already have started to embrace DG power systems, and they will continue to do so in the foreseeable future. The largest growth potential here will be seen in the small to medium sized industrial markets. ABI exposes early DG market opportunities from a global perspective -- from the U.S. to Asia Pacific, to Latin America. Each regional market has a different business and regulatory landscape and DG stakeholders will need to customize their solutions for varying market applications in each region.
The study analyzes a broad range of DG emerging technologies, from fuel cells to micro-turbines, to wind turbines. Market segment analysis ranges from industrial to commercial and residential applications. Market forecasts are provided for key regions / countries through to 2011. Critical summaries are also provided for current regulatory practices, tax practices, environmental regulations, and business considerations affecting the present and future uptake of DG technologies. Allied Business Intelligence Inc is an Oyster-Bay, NY-based technology research think tank and consultancy that offers expert advice and research on emerging technologies in the energy and communications industries. Details can be found at http://www.alliedworld.com or by calling 516-624-3113. Source: Business Wire 5/21/2002 via PowerMarketers.com 5/22/2002.
For more information on Educational Resources go to: http://www.thegateway.org
Energy Bills Head to Conference - Alliance Offers Comparison of Two Disparate Bills
This year, the House and Senate voted against energy efficiency in their respective energy bills, even when the cost was minimal and the impact significant. A set of provisions remains which represents a missed opportunity to help ease our national energy problems more quickly, cleanly, and cheaply than other alternatives. As the bill heads for Conference committee, efficiency advocates are focused on six issues: tax incentives; auto fuel economy; appliance standards; electricity; federal energy management; and research and development. The Alliance has compiled a 25-page comparison of the House and Senate bills. See the comparison reports at: http://www.ase.org/media/newsrel/senategetsd.htm
Comparison: http://www.ase.org/policy/energybillcomp.pdf
Source: Alliance to Save Energy 5/22/2002.
Senate Names Conferees for Energy Bill
The U.S. Senate announced that 16 Senators would work with the House to produce a uniform energy bill. Members of the energy bill Conference Committee include: Sens. Max Baucus (D-MT), Jeff Bingaman (D-NM), John Breaux (D-LA), Larry Craig (R-ID), Pete Domenici (R-NM), Chuck Grassley (R-IA), Ernest Hollings (D-SC), James Jeffords (I-VT), John Kerry (D-MA), Joseph Lieberman (D-CT), Trent Lott (R-MS), Frank Murkowski (R-AK), Don Nickles (R-OK), Harry Reid (D-NV), John Rockefeller IV (D-WV), and Craig Thomas (R-WY). Thirteen of the 16 conferees supported including the renewable fuels standard during the Senate debate. The House has not yet announced its members. Source: RFA Ethanol Report 5/22/2002.
The Senate Farm Bill Energy Title (Title IX)
In February, the Senate passed a new Farm Bill containing an innovative Energy Title (Title IX) designed to assist the nation's farmers, ranchers, and rural small businesses profit from developing renewable energy resources. Renewable energy can be the "cash crop" for the 21st century, boosting farmer income while creating jobs in rural communities, diversifying the nation's energy market, and protecting the environment. Tremendous untapped renewable resources exist throughout America's farmland. Biomass feedstocks including crop residues, animal waste, and low-input energy crops can be utilized to produce electricity, heat, fuels, chemicals, and a variety of marketable products, creating new businesses and jobs. Burdensome agricultural waste streams can be converted into revenue streams. Technological advances have brought down the cost of wind power substantially. Farmers can reap great economic benefit from developing these renewable resources. In Clear Lake and Storm Lake, Iowa farmers are already reaping the benefits of wind development, receiving rental payments averaging $2000 per turbine, which require only about one-fourth acre of land each. America's farmers are poised to be at the forefront of renewable energy development. The proposed Energy Title would build on existing programs, and create new initiatives:
Chapter 1: Biobased Product Development‹Biobased Product Purchasing Requirement (Sec. 388B). Establishes a mandatory federal purchasing requirement for biobased products if they are comparable in price, performance and availability to non-biobased products. States that the Secretary shall develop a labeling program similar to the Energy Star program for biobased products ($2 mil/year). Biorefinery Development Grants (Sec. 388C). Establishes a competitive grant program to support the commercialization of new and emerging technologies for the conversion of biomass (fuels, chemicals and electricity as a by-product) into petroleum substitutes ($15 mil/year). Biodiesel Fuel Education Program (Sec. 388D). Establishes a small competitive grant program to educate the public and major stakeholders about the benefits of biodiesel fuel use ($5 mil/year).
Chapter 2: Renewable Energy Development and Energy Efficiency‹Renewable Energy Development Grant Program (Sec. 388E). Establishes a competitive grant program to assist new cooperatives and business ventures at least 51% owned by farmers or ranchers for the development of renewable energy projects to produce electricity ($16 mil/year). Energy Audit and Renewable Energy Development Program (Sec. 388F). Establishes a competitive grant program to eligible entities to administer farmer, rancher and rural small business energy audits and renewable energy development assessments ($15 mil/year).
Grants to Farmers, Ranchers and Rural Small Businesses for Renewable Energy Systems and Energy Efficiency Improvements (Sec. 388G). Establishes a grant program to assist eligible farmers, ranchers and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements ($33 mil/year). Hydrogen and Fuel Cell Technologies Program (Sec. 388H). Establishes a competitive grant program to eligible entities to demonstrate the use of hydrogen and fuel cell technologies in farm and rural applications ($5 mil/year). Technical Assistance for Farmers and Ranchers to Develop Renewable Energy Resources (Sec. 388I). States the Secretary, acting through the Cooperative State Research, Education, and Extension Service, and in consultation with the Natural Resources Conservation Service, may provide education and technical assistance to farmers and ranchers for the development and marketing of renewable energy resources.
Chapter 3: Carbon Sequestration Research, Development, and Demonstration Program‹Research (Sec. 388J). Establishes a carbon sequestration research and development program to promote understanding of the net sequestration of organic carbon in soil and net emissions of other greenhouse gases from agriculture. Requires that, within three years, the Secretary convene a conference of key scientific experts on carbon sequestration from various sectors to establish benchmark standards of precision for measuring soil carbon content and net emissions of other greenhouse gases, designate measurement techniques and modeling approaches to achieve benchmark levels of precision, and evaluate results of analyses on baseline, permanence and leakage issues ($25 mil/year authorized).
Demonstration Projects and Outreach (Sec 388K). Establishes carbon sequestration monitoring programs; demonstration projects of methods for measuring, verifying and monitoring changes in carbon content and greenhouse gas emissions; and periodic outreach to farmers and ranchers regarding the nexus between global climate change mitigation strategies and agriculture ($10 mil/year authorized).
Biomass Research and Development Act of 2000 (Sec. 903). Extends the act's termination date to September 30, 2006. Provides funding for biomass research and development ($15 mil/year).
Financial and Technical Assistance for Renewable Energy Systems (Sec. 904). Amends the rural electrification act, establishing a grant program to assist rural electric cooperatives and other rural utilities in developing renewable energy to serve the needs of rural communities or for rural economic development. Grants may be used to help pay for renewable energy project feasibility studies, technical assistance, and for other costs associated with a project ($9 mil/year). Carbon Sequestration Demonstration Program (Sec. 905). Establishes a carbon sequestration demonstration program to support projects to reduce greenhouse gases and sequester carbon in rural areas and accurately measure the changes. Grants awarded on a competitive, cost-shared basis to colleges, universities and other research institutions to measure, estimate, monitor, verify, audit and test methodologies involved in environmental trades for projects to produce demonstrable reductions in net emissions of greenhouse gases and demonstrable new increases in the quantity of carbon sequestered in soils and trees. Encourages emitters of greenhouse gases to pay farmers to sequester carbon ($20 mil/year authorized).
Sense of Congress Concerning A National Renewable Fuels Standard (Sec. 906). Expresses the sense of the Congress that a national renewable fuels standard should be enacted under law and that the Department of Agriculture should ensure its policies and programs promote fuels from renewable fuel sources. Sense of Congress Concerning USDA's Bioenergy Program (Sec. 907). Expresses the sense of the Congress that the Department of Agriculture's bioenergy program should be continued and expanded to increase ethanol and biofuel production capacity. Source: Environmental and Energy Study Institute (EESI), 122 C Street, NW, Suite 700, Washington, DC 20001-2109, www.eesi.org.
For more information on legislative activities go to: http://thomas.loc.gov
What's the Forecast for Solar Power in the United States?
Hoping to reduce demand on California's energy system, officials have chosen Los Angeles as the city in which to place the nation's largest solar-panel system atop a government building. The low-maintenance solar panels were unveiled April 12 at the U.S. Postal Service processing plant 11 miles southwest of downtown Los Angeles. The Postal Service's 127-kilowatt system, built and installed by PowerLight Corp. of Berkeley, is the size of a football field and believed to be the largest such structure ever placed on a federal building, officials said. It is expected to reduce energy consumption by 10 percent during peak hours. Analysis: This news item from last week stirred my thinking that it might be a good time for a status report on the solar-power sector, and how it factors into the renewables market and the larger energy industry. While advocates of solar power may remain optimistic about the contributions that the renewable power source will make to the national fuel mix, other data offer a less positive forecast. According to the Department of Energy (DOE), the United States generated a mere two-hundredths of 1 percent of its electricity from the sun in 2000 (about 3,792 billion kWh), although some would say those figures include demand levels that had increased by 40 percent in the same year. According to the DOE, "the use of renewable fuels are projected to remain minor contributors to U.S. electricity supply, increasing from 357 billion kilowatt-hours of generation in 2000 (9 percent of the total, including cogeneration and distributed generation) to 464 billion (9 percent) in 2020." Renewables include other forms of power, but solar is typically the most expensive within this sector. Thus, the bottom line is not particularly bright for solar power. I recognize the need to qualify my subsequent statements with the caveat that this article is not intended to be a comprehensive study of the entire solar-power industry. There are obviously many nuances and sub-trends within the solar market, and other participants immersed in this market may have additional knowledge about emerging issues (which I would like to hear about). Rather, what I am attempting to do here is provide an overview of some of the more apparent trends in the solar-power market that continue to keep it a fairly marginal sector of the larger energy industry. As I see it from a broad perspective, these following issues remain some of the top challenges that the solar-power market will continue to face at is hopes to become a more mainstream alternative power source. The cost of solar power is still not very competitive with other fuel sources.
Considering the current drop of wholesale prices of natural gas, solar power is not considered very cost-effective for the end user. When making a cost comparison with more traditional forms of energy, a baseload coal plant can sell power in the 3.5 to 4.5 cents/kWh range. At around $3.00/MMBtu, natural-gas plants can sell power in the 3.0 to 3.5 cents/kWh range (baseload). By comparison, solar power is currently running between 12 and 18 cents per kWh. Solar advocates would say that, while expensive, solar power tends to reliably produce during the highest value (on peak hours).Yet, to install a photovoltaic system, most cost estimates run between $5,000 to $30,000, an up-front cost that often makes it prohibitive for a household or business to set up a solar system and become independent from their incumbent utility provider. Within the renewable sector, particularly significant for those end-users or states that want to explore some form of "green power," wind energy is currently running between 4 cents and 6 cents per kWh with tax credits and without "backup." Without tax credits, add 1.5 cents/kWh. With "backup," add at least another 1.5 cents/kWh. In March 2002, the U.S. wind-power industry welcomed a two-year extension of a key federal tax credit, saying it will restore momentum to an industry that saw record growth in 2001 but then froze in its tracks due to a delay in the credit. The wind energy Production Tax Credit (PTC)‹an important factor in financing new wind projects‹was part of the economic stimulus bill signed by President Bush on March 9. The PTC, which had expired on Dec. 31, will be extended retroactively from that date to Dec. 31, 2003. It provides a 1.5 cents/kWh tax credit for electricity generated by wind turbines. Moreover, solar remains by far the most expensive when compared to other, more traditional forms of power. Put another way, although the sun is free the devices used to capture it are expensive. This has kept many end-users, utilities and independent power producers tied to their more traditional fuel sources. On the bright side, the cost of photovoltaic cells has reportedly fallen about 95 percent since the 1970s and is expected to continue falling by the end of the current decade as emerging technologies improve. Some proponents of solar power are hopeful that international development of solar panels (in countries such as Australia, India, Italy, and South Africa) that is focused on creating large plants capable of generating more than 100 MW each could ultimately bring the cost of solar power down. It is hoped that large-scale development of solar panels in other countries could be subsequently modeled in the United States. Proponents of this development hope to see the cost for solar power drop from its current average of 15 cents/kWh to around 8 cents/kWh, putting it closer in the range of cost comparison with natural gas. Generally speaking, solar companies focused on U.S. sales continue to lose money. There are a good number of what I would call players in the solar-power sector, but space in this column doesn't permit looking at all of them individually. However, the example of Evergreen Solar (Nasdaq: ESLR) is worth noting. Evergreen Solar develops, manufactures and markets solar power products, and has patented its String Ribbon technology, which reportedly avoids the slicing of solid blocks of silicon. In November 2000, the company went public with an initial public offering of 3,000,000 shares of its common stock at the IPO price of $14 per share. The IPO opened strong, and shortly thereafter Evergreen Solar's stock closed 36 percent above its offering price, at $19.00. Fast forward to today, when the company's stock is trading at $2.67 (as of early morning trading on April 19).
Further, Evergreen Solar has incurred significant net losses since its inception ($2.5 million in 1998, $2.9 million in 1999 and $1.9 million for the first six months of 2000). Current figures include a net loss of $3.8 million, or $0.33 per share, for 4Q 2001, compared to a net loss of $2 million, or $0.29 per share, for 4Q 2000. The company's product revenues did increase in the fourth quarter to $764,000, an increase of $551,000 from the $213,000 reported for the same period in 2000. In fact, Evergreen Solar previously has said it "expects to incur substantial losses for the foreseeable future, and may never become profitable." The example of Evergreen Solar may illustrate the larger problem for similar solar-power companies, which incur heavy capital expenses to develop their technologies, while at the same time face rather sluggish sales in the United States. AstroPower is one company that stands out as an exception. The company recently reported a record product-sales increase of $20.2 million for 4Q 2001, up 51.4 percent from the similar 2000 period. AstroPower also said that during the same quarter income from operations increased to $2.2 million, up 260.1 percent, and net income increased to a record $1.9 million, up 146.1 percent. However, the distinction might be that AstroPower is a company focused on worldwide development and sales of solar cells and solar-power equipment, and the company acknowledges that it has encountered ongoing capacity expansion in response to strong worldwide demand. In fact, other markets such as Japan and some parts of Europe have demonstrated much stronger demand for solar power than the United States, which makes some international markets more lucrative for U.S.-based solar-power companies. Technology R&D for solar power, while encouraging, continues to develop rather slowly. Photovoltaic (PV) systems convert light energy into electricity. PV systems are also known as solar cells. A typical solar cell consists of a cover glass or other encapsulant; an anti-reflective layer; a front contact to allow the electrons to enter a circuit and a back contact to allow them to complete the circuit; and the semiconductor layers where the electrons begin and complete their voyages. Put more simply, photovoltaics sandwich several gases, including hydrogen, between a layer of stainless steel and laminates. When put on a roof or other location, the panels can generate electric power from the sun.
Continuous rolls of photovoltaic solar material are used to produce electrical power. Each roll can be huge (running some nine miles long, 16 inches wide and one micron thick) and weigh around six tons.
Most solar cells are made from silicon, operating as a semiconductor or semi-metal, which reflects the fact that silicon has both metal and insulating properties. The silicon is treated so that it generates a flow of electricity when light shines on it. Two types of crystalline silicon are typically used for solar cells: monocrystalline silicon is produced by slicing wafers from a high-purity single crystal boule, and multicrystalline silicon is made by sawing a cast block of silicon first into bars and then wafers.
According to some reports, custom-tailored molecules and spray-on plastic could someday create the next generation of solar cells that would be more flexible, more efficient and less expensive than the current forms of silicon panels. Scientists at the Lawrence Berkeley National Laboratory and the National Renewable Energy Laboratory are researching the technology, and say that they have discovered a hybrid material making the most of both types of cells. The material reportedly combines polymers with semiconducting rod-shaped molecules, and boasts a power-conversion efficiency of 6.9 percent. One of the problems with the current research is that, although plastic solar cells are much cheaper than inorganic cells made from silicon, they can only convert about 2.5 percent of the available light into energy. However, the advantage of plastic solar cells is that they do not have to be manufactured at the high-temperature process typically associated with silicon panels, which has a cost-saving appeal to the solar-power industry. In other words, there is a toss-up between the two primary forms of solar cells that are in development: silicon cells are efficient but expensive, whereas plastic solar sells are less expensive but not as reliable. Another new technology for the solar market is dish systems, which have already been put into construction in some markets. Essentially, a parabolic mirror, which is shaped like a satellite dish, would be constructed to reflect sunlight into a small generator that would be suspended in front of the dish. The heat generated in the process would drive a turbine, thus creating electricity for a business or household. State and federal mandates for renewable energy, including solar power, are increasing, but will they be enough to promote end-user interest? On a federal level, support for renewable energy (including solar) has been somewhat mixed. The U.S. Senate rejected an effort by Sen. James Jeffords (I-Vt.) to require utilities in every state to produce at least 20 percent of their electricity from renewable sources by 2020. The rest could originate from traditional coal, natural-gas and nuclear sources. Jeffords' amendment would have given utilities nationwide 15 years to fortify their renewable-energy portfolio, but this particular measure failed by a vote of 70 to 29. However, the Senate did agree to require by 2005 that 1 percent of energy be from renewable sources. The percentage would then increase 0.6 percentage points yearly until reaching 10 percent in 2020. The general consensus among Senators was that individual states should take the lead in encouraging the increased use of renewable energy. In the absence of stronger federally mandated support initiatives for solar power, some individual states have increased their own efforts to require the use of renewable energy sources. In fact, according to a recent Wall Street Journal report, 14 states have so far required their electric utilities to develop future renewable energy-production portfolios, ranging from 1.1 percent in Arizona to 30 percent in Maine. For instance, New York mandates that state facilities purchase at least 10 percent of their power needs from renewable sources by 2005, and 20 percent of those needs by 2010. Within Texas' restructuring law is a clause that requires the state's regional electric providers (REPs) to collectively add 2,000 MW of renewable energy capacity by 2009. However, remember that renewable power typically includes wind, solar, geothermal, and biomass technologies, and thus solar power often competes with these other forms of renewable energy in states that mandate an increased renewables portfolio. In addition to portfolio requirements, some states have also supported solar power with certain tax credits. California reportedly pays one-half of the costs associated with a solar-electric system that a business establishes; Illinois and Maryland are implementing similar credits. The federal government also provides a 10-percent commercial solar tax credit to businesses that employ a solar system, and those businesses are also eligible for a five-year, accelerated depreciated tax reduction. Personal energy credits related to solar power were repealed in the early 1980s, but some states like California are implementing "net metering" policies that make it easier for residential customers to install renewables-based generation (solar and wind) at their homes. In any case, solar power is becoming more financially feasible for businesses, which is an important factor considering that most solar systems still cost between $5,000 and $20,000. Moreover, growth of the renewables market (including both solar and wind) will likely be driven by technological change, unpredictable shifts in the prices of other energy sources and the desire for energy independence. Solar power had a market opportunity over the last year when natural-gas prices skyrocketed and concerns about power reliability increased. Now that natural-gas prices have dropped and some areas have experienced an apparent glut of power supply, interest in solar power has diminished somewhat. Moving forward, investors and the market as a whole may demonstrate only temporary interest in solar power, in correlation to the anticipation of ongoing power shortages or price spikes associated with other fuel sources. Source: Will McNamara Scientech 4/19/2002 via Associated Press via Solar e-Clips 5/14/2002.
For more information on marketing and research go to: http://www.nrel.gov/analysis/emaa/index.html
California Energy Commission¹s Renewable Energy Consumer Education Program
The Energy Commission's Renewable Energy Consumer Education Program has released a Program Opportunity Notice (PON) to award grants for projects and activities that promote renewable electricity and disseminate information on renewable technologies in California. The application package, including the notice, forms, and terms and conditions may be downloaded from the Commission's Contracts page:
http://www.energy.ca.gov/contracts/index.html#rece. More information on the Consumer Education Program may be found at: http://www.energy.ca.gov/renewables/consumer_education.html. Source: E-mail from CEC, 5/9/2002.
For more information on funding solicitations go to: http://www.eren.doe.gov/solicitations.html
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