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Renewable Energy Markets: Investment & Policy Trends Sponsored by the: U.S. House Renewable Energy & Energy Efficiency Caucus October 9, 2012
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2012 BCSE Members
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Trends and Barriers to Increased Deployment and Investment: Wind Jack Thirolf, Regulatory Affairs Enel Green Power North America, Inc. October 9, 2012, Washington, DC
EGP North America
Diversified portfolio across the US and Canada •
Presence in 21 U.S. States and 3 Canadian Provinces
•
More than 90 plants in operation with a total installed capacity exceeding 1.2 GW
•
Offices in Andover, Massachusetts (Headquarters), Washington, D.C., San Diego, California, Reno, Nevada, and Montreal, Canada.
•
More than 320 people employed in North America Technology
Capacity
Hydro
313 MW
Wind
830 MW
Geothermal
47 MW
Biomass
21 MW
Solar
26 MW
Tot
1,237 MW
Balanced long-term presence across all main renewable technologies in the United States and Canada 2
North American Presence
3
Key Wind Projects: North America Name: Name: Rocky Rocky Ridge Ridge Location: Kiowa Location: Kiowa and and Washita Washita Counties, Counties, Oklahoma Oklahoma Size: Size: 148.80 148.80 MW MW Machine: Machine: 93 93 turbines turbines of of 1.6 1.6 MW MW each each COD: COD: July July 2012 2012
Name: Name: Smoky Smoky Hills Hills Location: Ellsworth Location: Ellsworth & & Lincoln Lincoln counties, Kansas counties, Kansas COD: COD: 2008 2008 Size: Size: 250 250 MW MW (largest (largest wind wind project project in in Kansas) Kansas) Machine: Machine: 56 56 Vestas Vestas V80, V80, 1.8 1.8 MW MW (Smoky (Smoky I), I), 99 99 GE GE 1.5 1.5 MW MW (Smoky (Smoky II) II) Name: Name: Snyder Snyder Location: Location: Hermleigh, Hermleigh, TX TX COD: COD: 2007 2007 Size: 63 Size: 63 MW MW Machine: Machine: 21 21 Vestas Vestas V90, V90, 3MW turbines 3MW turbines (345 (345 ft) ft) Households: Households: 17,000 17,000
Wind Wind Projects Projects under under construction construction in in 2012 2012
Name: Name: Caney Caney River River Location: Location: Elk Elk County, County, Kansas Kansas Size: 200 MW Size: 200 MW Machine: Machine: 111 111 turbines turbines (V-90 (V-90 Vestas; Vestas; 1.8MW) 1.8MW) COD: COD: December December 2011 2011 Off-taker: Off-taker: Tennessee Tennessee Valley Valley Authority Authority (TVA) (TVA) Customers: 60,000 households Customers: 60,000 households
Name: Name: Chisholm Chisholm View View Size: Size: 235 235 MW MW Location: Location: Garfield Garfield and and Grant Grant counties, counties, Oklahoma Oklahoma COD: COD: Q4 Q4 2012 2012 Name: Name: Prairie Prairie Rose Rose Size: Size: 200 200 MW MW Location: Rock Location: Rock county, county, Minnesota Minnesota COD: COD: Q4 Q4 2012 2012 4
10 Years of Growth
1. Source: U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, 2011 Wind Technologies Market Report, August 2012.
5
Short-Term: Uncertainty Hurts
1
1. Source: AWEA, EIA.
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Long Term: Growth and Policy
1. Source: U.S. Energy Information Administration, Annual Energy Outlook 2012, June 2012.
•
State RPS projected to create 4 to 5 GW/year of demand for all renewables for 10 years
•
Future tax policy: how are renewables treated in comprehensive tax reform—open question
•
LCOE: what happens to natural gas prices, further innovation in wind turbine design (lower costs, increased performance)
•
Electricity demand: how do efficiency gains, economic growth rate effect demand for power
•
Transmission and VER integration: will renewables have an easier or tougher time coming onto the grid
7
Contact
Jack Thirolf Associate for Regulatory Affairs Enel Green Power North America, Inc. Email:
[email protected] Phone: 202-609-7799
8
BCSE Congressional Briefing Kathy Weiss, VP‐Government Affairs, First Solar First Solar Confidential & Proprietary | © Copyright 2012
© Copyright 2012, First Solar, Inc.
Global PV Demand Drivers
2
Power Plant Overview PV Module Arrays
Inverters Transformers Photovoltaic Combining Switchgear
Substation
Gen Tie‐line
First Solar Confidential & Proprietary | © Copyright 2012
Combiner Boxes
Power Grid
3
PV Module • Converts sunlight into electricity (DC power) • Manufactured by First Solar • Installed on string in series
First Solar Confidential & Proprietary | © Copyright 2012
PV Module Arrays
4
Combiner Box • Aggregates DC wiring from multiple strings • Provides single output to inverter
First Solar Confidential & Proprietary | © Copyright 2012
Combiner Boxes
5
First Solar Confidential & Proprietary | © Copyright 2012
Inverter Inverters • Converts DC power to AC (low voltage)
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Transformer • Increases low AC voltage to medium
AC voltage
First Solar Confidential & Proprietary | © Copyright 2012
Transformers
7
Photovoltaic Combining Switchgear (PVCS)
• Aggregates AC power from multiple
transformers First Solar Confidential & Proprietary | © Copyright 2012
Photovoltaic Combining Switchgear
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Substation and Generator Tie‐line • Provides plant controls, disconnects, and
step up transformer • Delivers electricity to the grid
Gen Tie‐line
First Solar Confidential & Proprietary | © Copyright 2012
Substation
Power Grid
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Sempra – El Dorado 13MW (DC) | 2008
NRG – Blythe 26MW (DC) | 2009
Sempra – Copper Mnt. 58MW (DC) | 2010
Enbridge – Sarnia 97MW (DC) | 2010
Southern / Turner – Cimarron 37MW (DC) | 2010
Enbridge – Tilbury 6MW (DC) | 2010
NRG – Santa Teresa 23MW (DC) | 2011
PNM – 5 Projects 27MW (DC) | 2011
APS – Paloma 23MW (DC) | 2011
Enbridge – Amherstburg II 19MW (DC) | 2011
NextEra – Moore 26MW (DC) | 2011
NextEra – Sombra 26MW (DC) | 2011
Enbridge – Silver State N. 63MW (DC) | 2012
Constellation – St. Mary’s 17MW (DC) | 2012
Verve/GE – Greenough River 13MW (DC) | 2012
Completed Projects 474MW (DC) | September 2012
NRG/MidAmerican – Agua Caliente 410MW (DC)
NRG – Alpine 85MW (DC)
MidAmerican – Topaz 749MW (DC)
NRG – Avra Valley 35MW (DC)
NextEra/GE–Desert Sunlight 725MW (DC)
Exelon – AVSR 304MW (DC)
Tenaska – ISECS 172MW (DC)
Sempra – Copper Mnt. II 118MW (DC)
GE – Walpole 27MW (DC)
GE – Amherstburg I 13MW (DC)
GE – Belmont 27MW (DC)
Pending bids…
In Construction 2,665 MW (DC) | September 2012
Awards and Recognition First Solar Honor
PV Plant
Project Finance
Project Finance Deal of the Year
Desert Sunlight
2012
Power Intelligence
Best Renewables Deal
Desert Sunlight
2012
CLP Resources Renewable Energy World.com Solar Power Generation USA
Year
2012
2011 National Safety Winner Solar Project of the Year
Agua Caliente
2012
PV Project of the Year
Agua Caliente
2012
Power Magazine
Renewable Top Plant
Copper Mountain
2012
Power Magazine
Renewable Top Plant
Sarnia
2011
Solar Project of the Year
Copper Mountain
2010
Solar PV Project of the Year
Sarnia
2010
Excellence in Energy Awards— Best Utility Scale Project
Sarnia
2010
Renewable Energy World.com CanSIA Renewable Energy World.com
First Solar Confidential & Proprietary | © Copyright 2012
Awarded By
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13 First Solar Confidential & Proprietary | © Copyright 2012
Solar Industry Growth and Policy Drivers First Solar Confidential & Proprietary | © Copyright 2012
Stable Tax Policy Has Resulted in Strong Growth • PV Installations Grew by 116% in Q2 2012 over Q2 2011
© Copyright 2012, First Solar, Inc.
30% ITC Enacted
ITC Years: CAGR = 77%
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Job Creation and Increased Value • The value of solar installations grew to $8.4 billion in 2011, up from $6 billion in 2010
© Copyright 2012, First Solar, Inc.
• Solar employment more than doubled from 2009 to 2011, topping 100,000 American workers
SEIA/GTM Research U.S. Solar Market Insight: Year In Review
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U.S. Market To Continue Strong Growth
© Copyright 2012, First Solar, Inc.
• U.S. PV Market Forecast to Install Over 3.2 GW in 2012
Source: SEIA/GTM Research “U.S. Solar Market Insight: Q2 2012”
17
© Copyright 2012, First Solar, Inc.
PV System Prices Falling Dramatically
Source: SEIA/GTM Research “U.S. Solar Market Insight: Q2 2012”
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Conclusions Diverse set of global PV demand drivers. Technology advancement and adaptation continue to drive down the cost of solar electricity. All energy is subsidized – government has been providing policy support for traditional fuels for decades.
© Copyright 2012, First Solar, Inc.
In a relatively short period of time, solar support policies, including the solar investment tax credit and the loan guarantee program, are yielding the desired results. Tax and regulatory policy that promotes access to a diverse and abundant supply of clean energy is in the national interest.
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SOLAR POWER: MAINSTREAM ENERGY SOLUTION
Stationary Fuel Cell Power Renewable Energy Markets Investment & Policy Trends Washington, DC October 9, 2012
Integrated Fuel Cell Company Manufacture
Sell (direct & via partners)
Install
Services
Growing Market Presence ~180 MW installed and in backlog plus 120 MW MOA
Over 80 Direct FuelCell® plants generating power at more than 50 sites globally
• •
Providing: On-site power Utility grid support
Delivering Ultra-clean Baseload Distributed Generation Globally
600 kW plant at a food processor
1.4 MW plant at a municipal building
2.4 MW plant owned by an independent power producer
11.2 MW plant – largest fuel cell park in the world
2
Application Examples
Natural Gas
1.4 MW at a municipal building, CA
2.4 MW plant owned by an Independent power producer in S Korea
600 kW plant Gills Onion Food Processor
900kW Tulare Wastewater Treatment Plant
11.2 MW plant in S. Korea- largest fuel cell power plant in the world
Renewable Biogas
1.2 MW DFC1500 Turlock Irrigation District Wastewater Treatment
DFC Powerplants have been supplied commercially since 2003 for clean natural gas and biogas applications 3
Stationary Fuel Cell Technology Commercial – Poised to be part of Mainstream Resources to serve the US Electricity Grid Part of a Family of Technologies– Transportation ,Stationary and Backup Power, Electronics US Technology ‐ Developed with investment from US DOE, DOD and NASA and Private Capital Hundreds of systems in operation worldwide US Manufacturing Base and Supply chain in place Designed to standards for Commercial, Industrial and Utility duty
Key Messages • Fuel Cells for Electric Power generation are cost Competitive with Renewables • The Value is increasingly being recognized outside the US • Fuel cells offer Best and Highest use of Domestic Natural Gas and Renewable Fuels for power generation
Summary
For Congress and National Policymakers 1. Recognize Economic Development Value – American Technology = American Jobs – manufacturing plus installation offers 3.5x Job growth of just installation 2. Reward the combination of efficiency and cleanliness and US Technology with incentives that motivate adoption 3. Reward the ability to combine high efficiency and domestic fuels (renewable and natural gas)
Renewable Energy Markets HYDRO
Don Webb Voith Hydro
1
Voith Hydro Headquarters for U.S. is in York, PA with 540 employees
Last month we celebrated 135 years in the hydro business
Design, test, manufacture and install hydro electric generating equipment
Product provides: • Highly efficient & environmentally friendly • •
power production Fast response time to electric grid demands Quick recovery from blackouts 2
Trends in the hydro industry Hydropower accounts for 2/3 of United State’s renewable energy portfolio
Growing interest in low head hydro at existing dams • Only 3% of the over 80,000 dams in the
United States currently produce power Continued modernization of existing plants Renewed interest in pumped storage • Only large scale energy storage • Connection to wind & solar power Environmental friendliness • Fish passage • Aeration Development of ocean energy • Tidal • Wave
3
Barriers to deployment, federal policy issues Regulatory/Licensing Reform •
Hydropower is subject to a long and complicated regulatory approval process involving numerous federal and state resource agencies, local governments, tribes, NGOs, and the public
•
A 2009 study said that with the right policies in place, the hydropower industry can create 1.4 million cumulative jobs by 2025
•
Congress needs to reform and improve the licensing process to create more clean, renewable power and more American jobs
Federal Use of Hydropower •
Hydropower is underutilized in the federal government’s efforts to expand renewable energy
–
Disappointing considering the vast untapped hydropower potential across the United States
–
Moreover, the federal government is already highly involved in the production of hydropower (Army Corps, TVA, USBR, etc.); placing a priority on expanding production would ensure additional hydro resources come online
4
Barriers to deployment, federal policy issues Certainty •
The hydropower industry is not reliant on federal tax credits and incentives
•
However, hydropower is eligible for the Production Tax Credit (PTC), which is set to expire at the end of 2013
•
Congress needs to decide whether it will extend the credit or not so developers have the certainty they need as they pursue new projects
Legislation •
Legislation has been introduced in the House and Senate that would streamline the regulatory process for small hydropower projects across the country
•
The Hydropower Improvement Act, S. 629, passed the Senate Energy and Natural Resources Committee and the Hydropower Regulatory Efficiency Act, H.R. 5892 unanimously passed the House earlier this year
•
Both of these bills take incremental – but important – steps to improve the regulatory process for hydropower and should be starting points for further discussions in the next Congress 5