Renewable Energy Means Continued Tourism Mark D. Crowdis Chief Executive Officer Think Energy, Inc.
Think Energy, Inc.
Created in 2000 Goal: Environmental excellence in the energy sector Team expertise Architecture Engineering Civil Engineering Electrical Engineering Mechanical Engineering Economics/Finance Environmental Science and Management Physics Biology Government and Public Policy
Think Energy Services
Strategic Planning and Implementation Analyzing and Purchasing Support
On-site Generation Green Power Renewable Energy Certificates Carbon Markets
Product and Service Development Investment Services Incentive and Legislation Navigation
Selected Clients
AeroVironment, Inc. Amherst College Bentley College Brown University Center for a New American Dream City of Ann Arbor City of Cambridge General Electric Company Global Green USA Los Angeles Unified School District Raytheon Company Roger Williams University
State of Wisconsin Smith College Springfield College The Timberland Company Toyota Motor Sales, USA Tufts University University of Massachusetts, Lowell WindHarvest WindCurrent World Resources Institute World Wildlife Fund The World Bank Group Xerox Corporation
Case Study: Toyota Motor Sales, U.S.A., Headquarters Location
Toyota Motor Sales, USA, Torrance, CA
Technology
Solar PV
Size
536 kW
Vehicle
LEED
Time
1.2 years
Payback
Approx. 5 years simple payback
Installation
Roof Mounted
Benefits
Energy Security, Press, Company Satisfaction, Community, Environmental Commitment
Solar PV Installation, Ontario, CA, 2007
Ontario, CA West coast parts and distribution center
2.3 MW system 3,400,000 kWh/year Will supply 58% of facility’s electricity Largest single-roof corporate system in North America
Purchase is through a Power Purchase Agreement (PPA) Construction commenced in April 2008
Expected operational in October 2008
Construction in Progress
New Orleans Holy Cross Project
Goal Renewable electricity generation for five single family homes, apartment complex, community center
Think Energy assists with technology selection, feasibility analysis and implementation PV, solar street lights, solar hot water, geothermal heat pumps, and river turbines considered Performed technical and financial analyses of renewable technologies Arranged for river flow study by the Center for Bio-environmental Research Investigated licensing and permitting requirements for a river turbine Researched energy monitoring systems and assisted with the selection of a vendor Assisted with the selection of a PV installer Managed renewable energy demonstration project for construction kick-off
Galapagos Islands
Electric power sector
Transportation
Power plants Renewable resources assessment Incentives for alternative modes of transportation Biofuels
Fishing Tourism
Hotels and facilities
Renewable Energy Definition Energy from sources that naturally replenish over time and are inherently cleaner than currently dominant fuel sources: oil, coal and natural gas.
Why is Renewable Energy Necessary?
Problems
Energy costs can eliminate ability to operate Oil Natural gas Electricity Gasoline
Remote locations of tourist destinations = Higher fuel costs Lower fuel availability High amounts of atmospheric pollution Greater expense to travel
Challenges for Hawaii
MDC6 MDC4
Main industry is tourism Petroleum provides nearly nine-tenths of MDC5 all the energy consumed in Hawaii The transportation sector leads energy demand due in large part to heavy jet fuel use Large potential for MDC7 wind and solar energy
Slide 12 MDC4
Find the number for percentage of revenue and insert.
MDC5
Let's get a pie chart that shows what they have for electricity production.
MDC6
Please get a chart of electricity costs in Hawaii for the last seven years.
MDC7
Let's create another slide regarding to opportunities for renewable energy on Hawaii. Solar PV potential, Solar H20 and wind potential.
Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008
Hawaii energy facts
Energy Use In 1995 Hawaii ranked 50th in energy use per capita in the U.S. Hawaii spends $2.76 billion on energy each year This equals 8% of the states GDP
Price of Electricity Hawaii has the highest electrical rates in the country In 2003 residents paid an average of 16 cents per kilowatt hour, while the average in the rest of the U.S. was only 8 cents per kilowatt hour
Cost As of 2002 the average household paid $123.65 on their monthly electric bill
Challenges for Alaska
Most Alaskan consumers are not linked to large, interconnected grids through transmission and distribution lines
Communities are far away from each other and difficult to access
Rural communities rely almost exclusively on diesel electric generators
Alaskans operate one of the Nation's largest fuel cell systems and the world's largest battery storage system
Alaska’s numerous rivers offer some of MDC8 the highest hydroelectric power potential in the US
Large swaths of the Alaskan coastline offer wind and geothermal energy potential
Due to harsh weather conditions, Alaska’s oil infrastructure is particularly vulnerable to weather-related accidents and disruptions. E.g. Exxon Valdez
Slide 17 MDC8
Once again, let's make the problems more detailed here. Show costs, consumers, lack of electricty per consumer, etc. On another slide, let's create some numbers on potential. Mark D. Crowdis, 10/16/2008
Price of Electricity 2007
2008
Alaska
11.75
12.8
US average
6.68
9.47
Geothermal Energy in Alaska Electric Resource potential
189 MWe
Installed capacity
None to date
Electricity generation
None to date
Thermal Resource potential
434 MWt
Installed capacity
4.4 MWt
Electricity generation
23,300 MWht
US Department of Energy
MDC9
Challenges for the Galapagos Islands „
Fuel is handled, transported and stored at several stages before consumption, increasing the probability that leaks will occur
„
Usage of diesel fuel for transportation on land and water, and for electricity generation is both inefficient and highly polluting
„
Waste disposal from various energy sectors harms ground water quality, as reinjection of waste into ground water is commonplace
Slide 21 MDC9
Let's create another slide with opportunities in the Galapagos. Mark D. Crowdis, 10/16/2008
Price of Electricity Cost of Fossil-Fuel Receipts at Electric Generating Plants (Nominal Dollars per Million Btu, Including Taxes )
MDC10
Rising cost of oil
Slide 23 MDC10
Please create rising cost of natural gas slide. Also, I want a slide on the rising amount of carbon dioxide in the atmosphere. Mark D. Crowdis, 10/16/2008
Cost of Natural Gas
Greenhouse Gas Emissions
How can renewable energy be part of the solution?
Business case for clean energy
Rising cost of oil and declining cost of clean energy makes clean energy more cost effective in the long run Secure power supply Islands, seashores, mountains and other ecotourism locations are abundant in renewable resources such as wind, solar, and geothermal Remoteness of ecotourism locations makes importing fossil fuels costly as well as damaging to the environment Clean energy is low in environmental impact and helps to preserve the pristine nature of ecotourism locations Clean energy appeals to customers of ecotourism
Environmental Benefits
Cleaner air and water Reduced greenhouse gas emissions Less spoilage of the landscape through the erection of transmission grids Less damage to the environment in the form of oil spills and air pollution
MDC12
Technologies Solar photovoltaics Geothermal heat pumps Solar thermal Pyrolysis Potable hot water Dam-free Hydropower Pool heating River turbines Space heating / cooling Tidal current turbines Heat to electricity Wave energy devices Daylighting Battery storage Wind Small – 1 to 100 KW Large – 100 KW to 5 MW Biofuels Biogas to energy Landfill gas Digesters
Slide 29 MDC12
Mark D. Crowdis Changxin,
10/16/2008
I have realized what I want here. I want one to two slides per technology. In those slides I want costs and potential paybacks, power output and limitations. I am not sure if you have enough technical information to do this. I think you may have work with Elyse, Owen and Helen on it. I think the technologies listed on this slide are good. Mark D. Crowdis, 10/16/2008
Biodiesel
Renewable, clean fuel Named by percentage biodiesel (B20 contains 20% bio-, 80% petrodiesel) Existing generators can generally operate on B20 or less with no adverse effects Generators can be located inside or outside Can also be used in vehicle fleets, no modifications needed when B20 is used in vehicles newer than 1993 Biodiesel Users
Mt. Holyoke College, MA University of Massachusetts Amherst Middlebury College, VT University of Vermont
Several B5 distributors in area, few B20 distributors Recent price comparison (10/2006) Diesel B20 B100
$2.62/gal $2.66/gal $3.31/gal
Biomass Market PAST
Combustion of bio materials, such as wood and waste, since beginning of civilization
Some of the first automobiles ran on bio-based fuels
Less than 200 MW in 1979
PRESENT
10 GW capacity in US, 7 GW derived from forest-product-industry and agricultural-industry residues, 2.5 GW of municipal solid waste (MSW) generating capacity, and 0.5 GW of other capacity
Provides about 14% of world’s primary energy
Co-firing of biomass and typically coal can reduce amount of fossil fuels used
Biodigestion systems in commercial operation, pyrolysis and gasification in commercial use in limited applications
$0.05 – 0.12 per kWh
FUTURE
Pyrolysis and Gasification become more widespread technologies
Growth averaging 2.5% per year will continue
Potential capacity of 55 GW in 2010
Biomass could meet 50% of world energy needs in next century
Solar Photovoltaics
Shortage in silicon High market demand all over the world, especially Germany Rising Solar Photovoltaic Costs Solar PV $/W 6 5.5 5 4.5 Ja n02 Ju l-0 2 Ja n03 Ju l-0 3 Ja n04 Ju l-0 4 Ja n05 Ju l-0 5 Ja n06
For large installations, $7-9/Watt installed For residential installations, $8-10/Watt installed Photovoltaic module costs dropped 71% since 1980, but prices have been high in the last few years
Dollars per Watt
Date
Solar Photovoltaic Market PAST • Technology was 6% efficient in 1954 • 2002 PV installations were 427 Megawatts • $0.30 to $0.60 per KWH PRESENT • Most efficient silicon solar cells capture about 25 percent, average is 6-15% • Multijunction solar cells boost efficiency as high as 36 percent, but are difficult to make and expensive • Building integrated photovoltaics • Installed capacity of 2500 MW globally in 2004 • Major Market Players •
Shell Solar, Sharp, Kyocera, BP Solar
$0.10 to $0.25 per KWH FUTURE • Up to 50% efficiency predicted in next three years • Potential in 2010 is 11 GW •
Outlook for Solar
High demand generated by government subsidies worldwide and a shortage of processed silicon have kept prices for solar-generated power much higher than average electricity prices over the past few years
Decline in the cost of silicon will boast production of solar panels
Prices for solar panels could drop by as much as 50 percent from 2006 to 2010
In areas that get a lot of sun, that will translate to solar electricity costs of about 10 cents per kilowatt hour, matching the average price of electricity in the United States
Solar Thermal Wall
Use solar energy to preheat air Install on south face of buildings Suitable for mild, cool, and cold climates and Applications with high heating requirements
Financial Information
Turnkey installation $12 - 15 / ft2* Heat savings 2-3 therms / ft2*
IL: $0.75 / therm KY: $0.83 / therm
$1.50 - $2.50 / ft2* Operations and maintenance None Typical payback Two – seven years *Square footage refers to area of installed Solar Wall, not interior floor area
Natural gas price escalation 3-5% annual increase Emissions reductions 54 ft2* saves 1 ton of CO2 per year
Solar Hot Water
Uses sun’s energy to heat water or air
Can produce even on cloudy days Roof or ground mounted Direct vs. indirect
Uses Floor heating with tiles Domestic hot water Supplement to forced air heating Swimming pools Some large scale commercial and industrial
Solar Hot Water Market PAST • First solar hot water system patented in 1981 • Very popular in 1970s and 1980s, but posed problems - some systems were heavy and leaked PRESENT • Increased reliability • Thousands of systems installed across US on homes and businesses • 2006 30% tax credit now applies to solar hot water • Heats 1-2 gal water per sq. ft. per day • Heat water to 140 to 350 degrees • Major Market Players •
Heliocol, Edwards, Heliodyne
Payback 6 – 25 years FUTURE • Additional incentives make systems more cost-effective •
Daylighting
Using sunlight instead of electric light Passive technology Decrease or eliminate electric light Approximately 8 hours daily Typically 75% to 90% noncloudy
Different sizes for different applications Primary vendors Solar Tracking Skylights Solatube
Daylighting
Improves productivity and mood Block infrared and ultraviolet rays Better thermal resistance than typical skylights Solar Skylights Uses three reflector panels to direct light and track sun Four feet square
Solar Tubes Tube directs light up to 40 feet into a space Tubes 21 inches diameter
MDC13
On-site Wind: Architectural Wind
Small building-top wind turbine Modular, 600 W each, can combine to make larger systems Sits on parapet of tilt-up concrete structures No roof penetrations Utilizes wind speed as it flows up and over building wall Can be used in urban and suburban applications
Slide 41 MDC13
Elyse has a great slide with many types of turbines on it. Let's get that one. Mark D. Crowdis, 10/16/2008
Small Wind Market PAST Rebirth in energy crisis of 1970s $0.25 to $0.40 per KWH Barriers – some products created noise, vibrations, visually unattractive PRESENT Annual sales in 2001 of 13,400 turbines Generating capacity up to 100 kW, less than 60 ft rotor diameter Barriers – few technologies and incentives can make costs prohibitive New attractive technologies mitigate noise and vibrations US companies lead small wind market Major Market Players
Shell, General Electric, Siemens, AES Corp., Bergey Windpower, AeroVironment,
$0.12 to $0.22 per KWH
FUTURE 50,000 MW by 2020 15 million homes and 1 million small businesses High volume manufacturing can reduce costs 15 – 30% Cost potential of $1.50/W
Case Study: Architectural Wind in New England Location
Undisclosed location, New England
Technology
Architectural Wind Turbines, 55 @ 400 W each
Size
22 kW, 41,000 kWh annually
Cost
$160,000, $72,000 after buy-down
Buy-down by fund at $4.00/watt
$88,000
Cost of Utility Delivered Electricity
$0.14/kWh
Annual Avoided Electricity Costs
$5,740 - $12,577 (assumes a 4% inflation and fuel increase annually)
Simple Payback
7.9 years
Installation Time
1 month
Benefits
52,480 lbs CO2 offset annually, avoided electricity, price hedge, positive press
Large Wind Market PAST Total of 2.8 GW in 1993 1980: 5 meter rotor diameter, 10 KW average $0.25 to $0.40 per KWH PRESENT 2005 – 11,769 MW new capacity added globally Total of over 50 GW installed capacity globally 9,149 MW of installed wind capacity in US, 1% of total electricity use 70 meter rotor diameter, 2000 KW average Major Market Players Shell, General Electric, Siemens, AES Corp. $0.028 to $0.9 per KWH FUTURE 150,000 MW by 2012 (German Study) 161,000 – 312,000 MW by 2012 (EWEA Study) 6% of total US electricity use by 2020
Case Study: Harbec Plastics, Inc. Location
Harbec Plastics, Inc., New York
Technology
Wind Turbine
Size
250 kW, 1/3 kWh usage
Cost
$.04 - $.06/kWh
Payback
4.2 – 7.8 years
Installation Time
2 weeks
Benefits
Meets corporate social responsibility demands, financial
Microturbines
Small, High Speed Gas-Powered Turbines Can Use a Variety of Fuels Natural Gas Diesel and Bio-Diesel Propane Landfill Gas Bio Gases
Basic Components Compressor Combustor Turbine Generator
Lower Emissions than Reciprocating Engines
Microturbine Costs Microturbine Costs Capital Cost (includes hardware, manuals, software, and training)
$600 (large) - $1100 (small) per kW
Heat Recovery System
Adds $75 - $350/kW
O & M Cost
$0.005 - $0.016/kW
Site Preparation and Installation Costs
Add 30-70% to Total Capital Cost
Maintenance Interval
5000 – 11,000 hours
Target Future Capital Cost: Less that $600/kW
Case Study: Essex Junction Wastewater Treatment Facility Location
Essex Junction Wastewater Treatment Facility, Essex Junction, VT
Technology
Co-generation system, 2 microturbines and heat recovery, burns methane gas blend
Size
60 kW, Over 400,000 kWh annually, 41% of demand
Cost
$0.0246 /kWh
Savings
$0.0637 /kWh, $30,000 a year
Subsidy
$40,000 from Efficiency Vermont
Geothermal
From Internal Heat of Earth Natural Steam Used to Power Turbine Generators Heating and Cooling Utilizes pipes deep in the ground filled with fluid that are heated and cooled by the earth Emit Water Vapor Waste Water Re-injected Into Reservoir Three Types Dry Steam Flash Steam Binary Cycle
Clean Energy Purchasing Options
On-site Generation Ownership Power Purchase Agreement Third Party Lease
Green Power Purchasing “Green Pricing” from current utility Alternative Energy Supplier
Renewable Energy Certificates (RECs)
Important Considerations Federal Tax Implications Timing of Ownership Ownership of Renewable Energy Attributes
RECs and Carbon Markets Production of Renewable Energy
Environmental & Other Benefits (from displacement) Commodity Electricity
Renewable Energy Credits (RECs) are the environmental benefits associated with renewable electricity Carbon credits are the avoided carbon dioxide emissions associated with energy reductions Both are considered unique commodities and have value RECs can be used to satisfy statewide energy goals Renewable Portfolio Standards
Carbon credits can be traded in the voluntary market Chicago Climate Exchange
Legislative changes could make RECs and Carbon offsets even more valuable
Direct Purchase of On-site Generation
Host owns and operates the system Claims or sells benefits Renewable Energy Certificate (REC) market Carbon market Federal Tax Credits Modified Accelerated Cost Recovery System Asset depreciation Low-interest loans Grants System Benefits Funds (e.g. NYSERDA) State and Local Incentives Government Utilities
Power Purchase Agreement (PPA)
Third party owns and operates renewable energy system for 6 to 20 years
Host leases land to owner and purchases energy from owner at negotiated rate
No upfront investment
Predictable energy costs Rate per kWh is fixed or increases by a percentage each year Rates starting at $0.10 - $0.20/kWh No operations or maintenance costs
Option to purchase RECs
Third party accesses all incentives & tax credits
Only larger or aggregated systems attract PPA investment
May involve a “buyout” option at a later date
Energy Services Contract
Bundled renewable energy and energy efficiency technology upgrades Example: Lighting upgrade, solar thermal wall, photovoltaics, small wind, boiler upgrade
Payments based on projected performance No up-front costs Option to retain environmental benefits ESCO provider accesses all incentives (state, utility and federal)
From EPA’s Guide to Purchasing Green Power
Solving the Problem
Facilities Conduct energy needs analysis (Minimum 10 year forecast) Identify energy efficiency opportunities Assess renewable energy resources Conduct renewable energy feasibility analysis Choose most attractive options (Energy, capital costs, $ savings, carbon/pollution) Conduct RFP Negotiate contracts Implement energy efficiency and renewable energy systems
Solving the problem
Transportation Quantify the situation – vehicle count, age, fuel using Cardenas (2001) as a starting point Assess alternatives
bicycles, walking, horses, biofuels, electric vehicles & plug in hybrids Test market to understand all costs Ensure vendors have capability
Do profit and loss analysis on solutions Request Proposals Negotiate contracts Implement
Renewable energy is…
Wise risk management Managing costs Protecting profit Managing carbon Managing other pollutants
Smart Business Over 90% of U.S. citizens say the power source they most desire is solar energy Green Gauge Report states that approximately 10% to 20% of consumers will pay more for green, while another 30% to 50% will choose the greener option when given a choice
Contact Information
Mark D. Crowdis Chief Executive Officer Think Energy, Inc. (301) 589-9522 mcrowdis@thinkenergy.net www.thinkenergy.net