[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012

biomass

coal

geothermal

nuclear

solar

energy storage

wind

Zpryme Smart Grid Insights | May 2012 | Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved

INSIDE CLEAN ENERGY A 13-Page Special Report on the Current State of U.S. Clean Energy.

1 Zpryme Smart Grid Insights | May 2012

INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.

biomass

coal

geothermal

nuclear

solar

storage

wind

Table of Contents US: THE CLEAN ENERGY LANDSCAPE ................................................................. 2

US: THE CLEAN ENERGY MIX ............................................................................... 4

Biomass ............................................................................................................... 5

Biomass Recent U.S. News .......................................................................... 5

Biomass Policies, Laws, & Regulation ........................................................ 5

Biomass Leading Technologies .................................................................. 6

Coal .................................................................................................................... 6

Coal Recent U.S. News ................................................................................ 6

Coal Policies, Laws, & Regulation .............................................................. 7

Coal Leading Technologies ........................................................................ 7

Geothermal ....................................................................................................... 8

Geothermal Recent U.S. News ................................................................... 8

Geothermal Policies, Laws, & Regulation ................................................. 8

Geothermal Leading Technologies .......................................................... 9

Nuclear ............................................................................................................... 9

Nuclear Recent U.S. News ........................................................................ 10

Nuclear Policies, Laws, & Regulation ...................................................... 10

Nuclear Leading Technologies ................................................................ 10

Solar & Wind .................................................................................................... 10

Solar & Wind Recent U.S. News ................................................................ 11

Solar & Wind Policies, Laws, & Regulation .............................................. 11

Solar & Wind Leading Technologies ........................................................ 12

Energy Storage ................................................................................................ 13

Energy Storage Recent U.S. News ........................................................... 13

Energy Storage Policies, Laws, & Regulation ......................................... 13

Energy Storage Leading Technologies ................................................... 14

BOTTOM LINE: CLEAN ENERGY & THE US .......................................................... 14




biomass

coal

geothermal

nuclear

solar

storage

wind

“By working together, we can seize

the clean energy opportunity – saving

money for consumers, promoting

sustainable economic growth and

protecting the planet for future

generations.”

Source: Steven Chu, U.S. Secretary of Energy, (quote from the third session of the Clean Energy Ministerial), April 27, 2012




US: THE CLEAN ENERGY LANDSCAPE

There are major challenges facing the U.S. today, and one

of the most important of all is to meet growing energy

demands. The U.S. needs a more diverse, cleaner mix of

energy sources (see figure 1) that will provide security

without causing irreversible harm to the globe. “In the last

few years, we’ve seen wind and solar become

mainstream and a cost competitive energy resources for

the United States,” said John McDonald, Director,

Technical Strategy & Policy Development, GE’s Digital

Energy business to Zpryme. “While the wind market faces

some uncertainty in 2012 with the expiration of the

Production Tax Credit, wind – and renewables more

broadly – will continue to play an important role in

meeting our future energy demands.”

Installed U.S. Capacity (GW) by Renewable Energy Source, 2010 to 2035

Figure 1, Source: U.S. EIA

Renewable Energy Source* 2010 2015 2020 2025 2030 2035 Growth

(2010 to 2035)

Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%

Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11%

Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%

Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11%

Solar 0.9 3.5 3.5 3.8 5.2 9.6 933%

Wind 39.1 51.6 51.6 54.6 57.5 65.4 68%

Energy Storage* 1.7 2.4 5.2 7.3 9.2 12.5 635%

*Zpryme

While progress is being made on renewable energy, most

clean energy technologies are not being deployed

quickly enough; the International Energy Agency (EIA) said

this week. “The world’s energy system is being pushed to

breaking point,” Maria van der Hoeven, executive director

of the EIA writes. “Energy-related CO2 emissions are at

historic highs, and under current policies, we estimate that

energy use and CO2 emissions would increase by a third

by 2020, and almost double by 2050,” she says. “Many

clean energy technologies are available but they are not

being deployed quickly enough to avert potentially

disastrous consequences.” In its report, Tracking Clean

Energy Progress, the EIA ranked progress on 11 key low-

carbon indicators, including renewables, nuclear energy

and carbon capture and storage, and found the world

was on track to meet just one of these targets.

The report, Tracking Clean Energy Progress, offers three

policy recommendations for moving clean-energy

technologies to the mainstream market:

1. Level the playing field for clean energy

technologies. This means ensuring that energy prices

reflect the “true cost” of energy – accounting for

the positive and negative impacts of energy

production and consumption.

2. Unlock the potential of energy efficiency, the

“hidden fuel” of the future. Making sure that energy

is not wasted and that it is used in the best possible

way is the most cost-effective action and must be

the first step of any policy aimed at building a

sustainable energy mix.

3. Accelerate energy innovation and public support

for research, development and demonstration. This

will help lay the groundwork for private sector

innovation, and speed technologies to market.

Back to the U.S. -- Americans are still divided about

whether to eliminate federal subsidies for any form of




energy and is giving less support to nuclear power and U.S.

According to another recent report Who’s Winning the

Clean Energy Race? from the Pew Charitable Trusts, the

United States has invested the most in Clean Energy of any

country in 2011 (see figure 2), retaking the lead from

China, which had held the top sport for the last two years.

Top 10 in Clean Energy Investment, 2011

Figure 2, Source: Pew Charitable Trusts1

2011 Rank Country 2011 Investment

(USD billions)

2010 Investment

(USD billions)

%

change

1 United States 48 33.7 42%

2 China 45.5 45 1%

3 Germany 30.6 32.1 -5%

4 Italy 28 20.2 39%

5 Rest of EU-27 11.1 15.2 -27%

6 India 10.2 6.6 55%

7 United Kingdom 9.4 7 34%

8 Japan 8.6 7 23%

9 Spain 8.6 6.9 25%

10 Brazil 8 6.9 16%

The U.S. is sliced down the middle regarding the

elimination of federal subsidies for any form of energy and

is giving less support to nuclear power and U.S. funding of

renewable energy, a new poll has found, a new Yale-

George Mason University poll has found this week. Fifty-

four percent of respondents opposed doing away with

subsidies for oil, gas, coal, nuclear or renewable energy,

while 47% favored the idea. Further, just fewer than 80% of

Americans support federal funding of renewable energy

research.

1 From Who’s Winning The Clean Energy Race? - These figures have been revised by

Bloomberg New Energy Finance as of February 2012.

Adding to both public and private sector pressure, a

handful of U.S. energy initiatives have expired and may

not be renewed; for example in 2011:

Energy Efficient Homes Tax Credit for Builders

Advanced Energy Manufacturing Tax Credit

Department of Energy Section 1705 Loan

Guarantees

Department of the Treasury Section 1603 Grant

Program

With shaky renewable energy support from the American

public, gas prices at an all-time high (despite slight drop

this week), spending from the 2009 stimulus bill mostly

spent (see expired U.S. energy initiatives above) and a

presidential race bringing significant focus to energy

policy, clean energy will have to become more than a

political-focal-point.

US: THE CLEAN ENERGY MIX

As the world moves towards energy independence,

several types of clean energy technology have attained

media attention, have policies and laws that regulate

them, and have technologies that are being developed

to further increase efficiency and safety.

Biomass, clean coal, geothermal, nuclear, solar, wind, and

storage technologies offer the opportunity to move from

carbon based energy products to clean, renewable

energy sources.




Biomass

In 2011, 19,786,000 Mw hrs of electricity was created from

biomass, biogenic municipal solid waste, landfill gas,

sludge waste, agricultural byproducts, and other biomass

solids, liquids and gases. Excluding hydro and wind power,

biomass dominates the projected increases in US

renewable energy generation, being projected to

increase four-fold primarily due to Federal requirements to

use more bio-mass based transportation fuels, and state

level required portfolio scales. However, the growth rate is

also projected to slow as tax credits will expire in 2012.

Installed U.S. Capacity (GW) for Biomass, 2010 to 2035


Renewable Energy Source 2010 2015 2020 2025 2030 2035 Growth

(2010 to 2035)

Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11%

The U.S. capacity for biomass is projected to grow from

2.5GW in 2010 to 2.7GW by 2035. The compound annual

growth rate (CAGR) from 2010 to 2015 is projected to be

11 percent.

Biomass Recent U.S. News

Several biomass projects have gained recent attention in

the National media. Wisconsin’s Public Service

Commission voted 3-0 to direct 75% of funding for

renewable energy efforts to biomass projects, focusing on

the state’s strengths in agriculture and forestry. This

investment brings $7.5 million to the industry. Nova

Thermal is currently installing a pilot project at

Philadelphia’s Waste Water Treatment Plant to convert

sewage into biomass fuel. In addition, Kansas has recently

received a $5 million grant to build a biofuel digester to

replace 90% of the fossil fuels it currently uses. Finally, on

April 14, an airplane flew across the Pacific Ocean fueled

by biofuels. The plane departed from Washington, and

illustrates the potential impact biofuels and is the first step

to reduce oil dependence.

Biomass Policies, Laws, & Regulation

EPA regulations are stringent, governing boilers and other

equipment that burn biomass. The main focus is on

controlling emissions of carbon monoxide, particulate

matter, hydrogen chloride, mercury, and dioxins/furans at

major sources of industrial, institutional, and commercial

boilers.

Another source of regulation is through the US Department

of Agriculture, which governs the land management

practices of the 155 national forests, 20 grasslands, and 1

prairie. The main focus of the policies is to create

standards regarding the use of the land including wildlife,

endangered species, and protected areas. The Land

Management Act has been used recently as land has

been designated for use in biomass facilities, and the

environmental effects of these facilities have been

investigated. Furthermore, the ARRA of 2009 allows eligible

taxpayers to receive a tax credit or grant from the US

Treasury Department for electricity generated by qualified

energy resources. The legislation allowed incremental

energy production associated with the expansion of

biomass facilities to increase 1.1 cent to 2.2 cents per hour

depending on open or closed loop systems.

The Energy Independence and Security Act of 2007,

establishes a target of 36 billion gallons per year of biofuel




utilization. Through the establishment of such guidelines,

incentives and targets have allowed for the development

of the biomass field, while protecting the environment of

potential hazards. Finally, the Energy Policy Act of 2005

extended $50 million in grants in biomass energy projects,

further highlighting the importance and providing

regulations for the biomass energy.

Biomass Leading Technologies

Combustion: the main approach utilizing biomass is

to use combustion in a boiler, where the steam is

sent to a turbine, which in turns creates electricity.

Co-Generation Facilities: the combined heat and

power production facility is located on industrial sites

with a steady supply of biomass. It operates with a

combustion boiler, but the steam created is also

recovered and used for heating needs. This

produces high energy efficiency rates of over 80%

conversion rates.

Gasification: the biomass is heated in an

environment where it breaks down into a flammable

gas. After the gas is cleaned and filtered, it can

then be used in combined cycles and in gas and

steam turbines.

Anaerobic Digestion: the biomaterials go through

fermentation that converts the organic materials

into mostly methane (60%) and carbon dioxide

(40%) biogas. Enzymatic digestion and hydrolyzate

fermentation both increase the fermentation levels

and act as a catalyst for conversion.

Cookstove Technologies: the most prevalent

biomass use is in small stoves in underdeveloped

areas. Current technologies focus on improving

efficiency and lowering emissions, as well as

reducing the chance for fire or poisoning from

burning the fuel.

Coal

Coal is the largest source of electricity generation in the

United States. The EIA projects that few new coal-fired

power plants will be built and a 25% growth rate will be

experienced for coal from 2009-2035. However, several

new laws and regulations are being imposed on the coal

industry, which could offer significant challenges for future

growth.

Installed U.S. Capacity (GW) for Coal, 2010 to 2035



(2010 to 2035)

Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%

The U.S. capacity for coal is projected to grow from

308GW in 2010 to 285.8GW by 2035. The compound

annual growth rate (CAGR) from 2010 to 2015 is projected

to be -7 percent.

Coal Recent U.S. News

The Obama Administration recently proposed the 1st

standards to cut carbon dioxide emissions from all new

power plants. In conjunction, the EPA proposed new

source performance standards. These standards will hold

all new coal fired power plants to the same regulations as




natural gas powered plants. The ACCE President and CEO

released a statement in response stating that the EPA is

ignoring the effect such policies have on American

families and accuses them of attempting to stagnate the

coal industry, thus making it impossible to build new plants

due to the economic impact of such policies, and will

cause the closure of existing plants. Other news suggests

that a collaboration of US and Chinese technologies will

allow the US to utilize the billions of dollars it has spent in

research and development, as well as carbon capture

sequestration and storage in an area where one new coal

plant is built weekly on average. This collaboration will

allow the US advancements in clean coal technology to

be utilized on a large scale, in an area with fewer

regulations.

Coal Policies, Laws, & Regulation

In April 2012, the EPA proposed new source performance

standards for all new fossil-fired electricity generating units.

This standard required that the emissions from coal fired

plants be equal to plants generating electricity from

natural gas. The EPA has also proposed National Uniform

Emission Standards for storage vessels, transfer operations,

and control devices. The Clean Air Amendments promote

the use of clean, low-sulfur coal, as well as the

development of innovative technologies to clean high-

sulfur coal. In addition, the amendments encouraged

existing plants to repower with clean coal technologies.

Finally, laws govern the storage of the byproducts of coal

combustion, namely carbon dioxide, to prevent spills or

contamination of the soil and water supply.

Coal Leading Technologies

Post-Combustion Capture: Flue Gas Separation

treats the carbon dioxide as a pollutant and passes

the flue gas through an amine solution where it is

absorbed. 20-25% of the total plant output is

reduced due to reduced efficiency and the energy

requirements of the capture process.

Oxyfuel Combustion: the coal is burned in an

oxygen-rich environment. The flue gas is mostly

carbon dioxide and thus is more readily captured by

the amine scrubbing process. It is achieved for

about half the cost and the plant utilizes several

pieces of technology, including an air separation

unit, boiler island, compression and purification units.

Integrated Gasification Combined Cycle (IGCC):

using the coal and steam to produce hydrogen and

carbon dioxide from the coal, it is burned in a gas

turbine and secondary steam turbine. The gasifier is

fed oxygen instead of air and the result is highly

concentrated carbon dioxide which is more readily

captured post-combustion.

Pre-Combustion Capture: using a shift reactor to

oxidize the carbon dioxide with water, the resulting

gas steam is hydrogen and carbon dioxide. The

carbon dioxide and other impurities are able to be

separated before combustion with 85% of the

carbon dioxide removed. The remaining hydrogen

becomes the fuel for electricity generation.




Geothermal

Geothermal energy is able to take advantage of the

consistent temperature of the earth at depths of 150-200

meters or more. The heated water is then extracted from

the earth and used to both generate electricity and heat

facilities.

Installed U.S. Capacity (GW) for Geothermal, 2010 to 2035



(2010 to 2035)

Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%

The U.S. capacity for geothermal is projected to grow from



170 percent.

Geothermal Recent U.S. News

Ball State University in Muncie, Indiana has been

recognized for its geothermal energy system, which has

cut heating costs by 50%. The university has over 1800

bore holes on the property that are at a depth of 400 feet

below ground where it reaches an equilibrium

temperature. In addition, geothermal technology will be

used to treat contaminated soil and water from the

Lawrence Aviation Industries Superfund site in New York.

The treated water will be used to condition the air inside a

new water treatment plant, producing higher efficiency.

The US Department of Energy has announced plans to tap

into geothermal energy from the Rocky Mountain Oil Test

Center in Wyoming. This project uses hot water that is a

byproduct of oil and gas wells and converts it into

geothermal energy. The federal government has also

approved the use of geothermal technology to create

energy at the Newberry Volcano in Oregon. The goal is to

produce commercial levels of geothermal energy. Finally,

the National Renewable Energy Lab and the State of

North Dakota identified two locations to test advanced

geothermal systems in Rhame and Dickinson. These

developments in the field of geothermal energy identify

the potential usages of geothermal energy, as well as

advanced technologies that can make the energy type

more productive.

Geothermal Policies, Laws, & Regulation

First, the 1974 Geothermal Research Development and

Demonstration Act established the first set of policies in

geothermal energy and serves as a foundation for all

geothermal energy research and production. In 2007,

Congress passed the Advanced Geothermal Energy

Research and Development Act, which supports and

expands geothermal energy production, and awards

grants to establish Geothermal Technology at centers of

higher education. It also established geothermal energy

as a priority and an area to be further explored. More

recently geothermal energy is further supported by

programs where residential and commercial facilities

qualify for either a federal investment tax credit or

production tax credit by employing geothermal energy

technology.




Geothermal Leading Technologies

Closed Loop Systems: circulate water or a mixture of

antifreeze and water through a series of closed,

buried pipes.

Open Loop Systems: also utilize a series of closed,

buried pipes, but utilize a lake, well, or pond to draw

water into the system. The energy is extracted from

the water, and then returned to its source.

Enhanced Geothermal Systems: reservoirs are

engineered to produce energy from existing

geothermal sources. This involves improving the

permeability of rock and allows access to the Earth’s

heat at a depth. Production wells remove the water

from the rock and extract the energy from it.

Geothermal Heat Pumps: moves the energy from

the geothermally heated water to the home or

business. During the winter it uses the heat from

water heated by the earth into the home or business

and in the summer it pulls the heat from the facilities

and discharges it into the ground.

Dual Source Heat Pump: combines a traditional air

source heat pump with a geothermal heat pump.

Overall, the heat pump is less expensive in most

cases than complete geothermal heat pumps and

offers improved efficiency from traditional systems.

Nuclear

According to the World Nuclear Association there are

plans for a number of new reactors in the U.S., the

prospect of low natural gas prices continuing for several

years has dampened these plans and probably no more

than four new units will come on line by 2020.

Nuclear Power in the United States:2

The U.S. is the world's largest producer of nuclear

power, accounting for more than 30% of worldwide

nuclear generation of electricity.

The country's 104 nuclear reactors produced 807

billion kWh in 2010, over 20% of total electrical

output.

Following a 30-year period in which few new

reactors were built, it is expected that 4-6 new units

may come on line by 2020, the first of those resulting

from 16 license applications made since mid-2007 to

build 24 new nuclear reactors.

However, lower gas prices since 2009 have put the

economic viability of some of these projects in

doubt.

Government policy changes since the late 1990s

have helped pave the way for significant growth in

nuclear capacity. Government and industry are

working closely on expedited approval for

construction and new plant designs.

2 World Nuclear Association, April 22, 2012




Installed U.S. Capacity (GW) for Nuclear, 2010 to 2035



(2010 to 2035)

Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11%

The U.S. capacity for nuclear is projected to grow from

308GW in 2010 to 285.8GW by 2035. The compound


to be 11 percent.

Nuclear Recent U.S. News

In February 2012, the Nuclear Regulatory Commission

(NRC) approved license to build new nuclear reactors. The

commission approved a combined construction and

operating license for an AP1000 reactor design from

Westinghouse Electric3. The approval for new commercial

reactor was the first since Three Mile Island accident in

1979.

Nuclear Policies, Laws, & Regulation

The Obama Administration remains committed to nuclear

power as part of its overall energy policy. It has provided

an $8 billion in loan guarantee for construction of new

reactors at the Vogtle and another $200 million support for

NRC licensing. In March 2012, it announced a $450 million

to support the design, development, and licensing of two

American-made small modular reactors (SMRs) five years4.

In an aftermath of the Fukushima accident, the NRC has

3 www.nei.org/newsandevents/newsreleases/nrc-approval-of-plant-vogtles-

construction-operating-license-opens-new-nuclear-energy-era 4 www.ne.doe.gov/newsroom/2012PRs/nePR032212.html

adopted new safety rules that would require power plants

to have plans in place to prevent and deal with potential

natural disasters. Although the commission has approved

the new regulations, it disagrees on the implementations.

The new rules will likely require plants to undertake costly

upgrades. Nuclear power companies are given a year to

propose their plans to be fully compliance by 20165.

Nuclear Leading Technologies

Currently, five nuclear reactors designs are under the NRC

design certification process. These include6:

GE – Advanced Boiling: Water Reactor (ABWR)

Westinghouse: Advanced Passive 1000 (AP1000)

GE-Hitachi Nuclear Energy: Economic Simplified

Boiling-Water Reactor (ESBWR)

Mitsubishi Heavy Industries: U.S. Advanced

Pressurized-Water Reactor (US-APWR)

AREVA: U.S. Evolutionary Power Reactor (U.S. EPR)

Solar & Wind

Solar and Wind technology are two of the most well-

known clean energy types. Solar energy is utilized in all

states, both at commercial facilities and in residential

environments. Wind technology is also common place

and can be utilized through both wind farms and at

5 www.pbs.org/wgbh/pages/frontline/health-science-technology/nuclear-

aftershocks/first-post-fukushima-safety-rules-approved-by-nrc/ 6 www.nrc.gov/reactors/new-reactors/design-cert.html




individual facilities.

Installed U.S. Capacity (GW) for Solar, 2010 to 2035



(2010 to 2035)

Solar 0.9 3.5 3.5 3.8 5.2 9.6 933%

The U.S. capacity for solar is projected to grow from .9GW

in 2010 to 9.6GW by 2035. The compound annual growth

rate (CAGR) from 2010 to 2015 is projected to be 933

percent.

Installed U.S. Capacity (GW) for Wind, 2010 to 2035



(2010 to 2035)

Wind 39.1 51.6 51.6 54.6 57.5 65.4 68%

While the U.S. capacity for wind is projected to grow from



68 percent.

Solar & Wind Recent U.S. News

NASA’s new Moffet Field facility has been rated the

greenest federal building in the nation, because of its

usage of green technology, including solar and wind

systems. The 80,000 sq. ft. building has earned a LEED

certification for its use of green technologies. Solar power

has also reached international attention as a law suit has

been filed against Chinese firms for engaging in unfair

trade practices and offering low cost imports that have

been flooding the US market and “undermining the US

solar industry” according to Solar Wind Industries America

and others involved in the suit. Wind technology has also

entered the spotlight as a lawsuit filed by environmentalists

has been settled, thus allowing turbines to be installed in

Nevada’s 1st wind farm. The settlement also provides

additional research on how construction of the facility will

affect the sage grouse and bats indigenous in the area.

Maine’s largest wind energy developer lost approval of a

project, as nature guides and those engaged in the

tourism industry opposed development. The company

plans to offer a scaled down version of the project to

reach a compromise in the future. First Wind secured the

financing ($76 million) to construct the Bull Hill Wind

Project, the 5th in Maine, where it will create construction

jobs, increase local tax revenue, and provide clean

energy for 18,000 homes in the area. Finally, American

Wind Energy Association released an annual report,

claiming that more than $20 billion in private investments

was generated through wind power, with the majority

dedicated to building new facilities and producing more

efficient turbines.

Solar & Wind Policies, Laws, & Regulation

Much of the regulations on the solar energy are created

through the Solar Energy Industries Association’s

collaboration with the US Congress to draft regulations

that affect the industry in areas including finance,

manufacturing, and tax programs. In addition, the

American Wind Energy Association has also worked with

Congress to create reforms in both wind energy and in the

renewable energy field as a whole.

Most recently, the Clean Energy Standard Act of 2012 has

been proposed to create a national standard for clean

and renewable energy generation, with a goal of 80%




clean energy generation by 2035. Programs include the

Department of Energy Loan Guarantee program, which

was created in the Energy Policy Act of 2005 which aims to

support new and innovative technologies, as well as

reduce the risk associated with introducing these new

products into the market.

Renewable energy standards and clean energy standards

require a certain percentage of electricity to be

generated by renewable sources. Both standards have

increased investments in both solar and wind power. The

Energy Policy of 1992 was the first driver of renewable

energy investment, establishing a production tax credit

which started massive investments in the renewable

energy field. Wind energy was a key recipient of said

investments. Wind energy’s main regulations are primarily

concerned with wildlife protection, as well as noise control.

Both issues have prevented some wind farms from being

erected or otherwise affected their size or location.

Solar & Wind Leading Technologies

Back Contact Silicon PV Panels: recently installed at

a DOE facility, these solar panels demonstrate an

efficiency of 23.4%, a record for mass produced,

large scale solar panels. All of the contacts are on

the back of the solar cell, leaving a larger space on

the top for energy production.

Microconverters: solar panels produce DC power,

while our homes utilize AC power. These systems

convert the electricity produced and allow the solar

panels to produce AC energy that is ready to use.

Thin Film: the use of thin film has been expanded to

allow spray on options and include window liners.

The improved technology allows the ability to utilize

solar power on untraditional sources, including

windows. In addition, the spray-on options allow

solar panels to be installed in nontraditional

locations where solar energy was unable to be

cultivated in the past.

Scaled Wind Farm Technology (SWIFT): SWIFT

technology enables efficient and near silent wind

turbine operation, is grid connected and can be

mounted to a structure or a pole. The SWIFT

technology is ideal to urban and suburban areas.

Floating Wind Turbines: these large scale wind

turbines are anchored to the sea floor by cables

and float over waters over 100m deep. In deeper

waters, the wind is consistently higher and the

turbines are able to move with changing waters,

thus being able to survive storms. If a problem does

occur, they can be towed to port for repairs,

minimizing down time.

Micro Wind Turbines: these small turbines are

designed for use on smaller scale projects and are

being seen at homes in residential areas. Several

different types and models are available depending

on need. Some are designed for powering a small

appliance, and modular units are available for

larger scale use on the roofs of urban and suburban

areas. Some are pole mounted and several types

have also eliminated the need for a pole. These

small scale models offer options to users and with so




many options available, a user is able to find one to

meet their specific needs.

Energy Storage

One challenge that has faced clean energy in the past is

energy storage. Because of the intermittent nature of

renewable energy, electricity can be stored during off-

peak hours and channeled into the grid during high

demand times.

Installed U.S. Capacity (GW) for Wind, 2010 to 2035

Figure 9, Source: Zpryme


(2010 to 2035)

Energy Storage 1.7 2.4 5.2 7.3 9.2 12.5 635%

The U.S. capacity for energy storage is projected to grow

from 1.7GW in 2010 to 12.5GW by 2035. The compound


to be 635 percent.

Energy Storage Recent U.S. News

Bill Gates made recent news as he spoke about the need

to increase energy storage. He said that all of the

batteries in the world could contain 10 minutes of the

world’s electrical needs. Because of the inadequate

storage capacity, this makes the energy produced from

biomass, clean coal, geothermal, solar and wind energy

secondary problems. Energy is lost consistently from these

sources because it is incapable of being stored efficiently.

Natural Gas also brought attention to the inadequacy of

energy storage as it was released that at its current rate of

production, a record high level, that all of the US storage

facilities could be filled by the fall and this would cause

prices to fall by 50%. Hydrogenics Corporation entered

into a contract with Elbridge, Inc to develop large, utility

scale energy storage. AES Energy Storage will also work

with Portland General Electric to create storage facilities

to bridge gaps and further incorporate renewable energy

into their electricity mix. This will be the first commercial-

scale energy storage project in both Oregon and the

United States.

Clearly, focus on energy storage and its ramifications have

come to the forefront of the United States news.

Energy Storage Policies, Laws, & Regulation

The EPA has enacted several policies to govern storage

devices. The Safe Drinking Water Act of 2010 governs the

practice of injecting the earth with carbon dioxide for

underground storage. It established a new classification

of well and set up the minimum technical requirements to

protect underground drinking water. Underground

storage tanks are also governed by a series of EPA

regulations. These policies are designed to prevent loss or

compromise due to structural failure, corrosion, overfills or

spills for as long as the tank is used. Industry codes and

standards also govern the construction of the

underground storage tanks to insure proper function.

RCRA and CWA requirements have also created stringent

standards that have significantly reduced the use of

underground storage tanks. This has also increased the

use of above ground tanks, which have less federal

regulations. These requirements require leak detection,

corrosion, protection and control for spills and overfills.

Finally, the Federal Regulatory Commission has issued a




mandate to support the development of energy storage

technology to provide intermittent support to the electric

grid and maintain the 60 hertz frequency on which the

grid functions. The mandate increases the payment to

companies that provide the fastest and most accurate

frequencies for energy storage.

Energy Storage Leading Technologies

Pumped Hydro-Storage: oldest and largest type of

storage is comprised of two tanks, one lower tank

and one higher tech. During off-peak times, water is

pumped into the higher tank and stored. When

demand increases, the water is pumped to a lower

tank and passes through turbines, which generate

energy on its way.

Compressed Air Energy Storage (CAES): uses off-

peak power to pressurize air in an underground

cavern or reservoir which is then used during peak

times to power a generator or turbine. This process

removes the need for air compressors, and power

produced is increased 2 to 3 times.

Regenerative Fuel Cells: redox flow cell batteries- a

reversible electrochemical reaction between two

electrolytes stores and releases energy in a closed

loop cycle without discharge. Electrical energy

from the grid is converted to potential chemical

energy.

Superconducting Magnetic Energy Storage (SMES):

a cryogenically cooled core of a superconducting

material creates a direct current, which in turn

creates a magnetic field which stores energy.

Lithium-ion Batteries: is a family of rechargeable

battery types in which lithium ions move from the

negative electrode to the positive electrode during

discharge, and back when charging. Lithium-based

batteries are common in two applications: Power for

portable equipment and low-power, long-life

applications.

Hydrogen: hydrogen can be stored in multiple

forms- gas, liquid, metal hydride and carbon-based

forms. A chemical reaction can release this stored

energy, creating a closed loop, and converting the

stored energy into grid accessible energy.

BOTTOM LINE: CLEAN ENERGY & THE US

It is clear that the amount of coal and oil available are

declining and federal regulations simply highlight the

growing dedication to moving to more renewable and

clean energy sources. Recent improvements in the

technology available in all areas, biomass, coal,

geothermal, nuclear, solar, wind and storage will lead the

way as a move to decreased dependence on fossil fuels

and increased reliance on renewable, clean energy

sources is embraced on a larger scale. For this transition to

be the most successful, additional funding at the federal

level should encourage additional research and

development, as well as deployment on a small scale. In

addition, more collaboration by the federal agencies and

industry associations must be developed to establish the

proper regulatory framework to guarantee both

environmental safety and provide growth opportunities.




Also the U.S. continues to be at the top for clean energy

venture capital and private equity investments, one

market space in particular, the Smart Grid. Ken Geisler, VP

of Strategy for the Siemens Smart Grid Division, told Zpryme

recently, “the Smart Grid is focused on three main

elements. Improved grid reliability, informed consumption

and integration of variable and renewable resources.

Utilities are moving rapidly to determine the best way

forward in each of these areas, leading with grid

automation, enhanced control center capabilities, and

advanced metering infrastructures in preparation for

proliferating renewable resources at both the transmission

and distribution levels. The key to enabling the expansion

of these renewable resources will be in establishing the

integrated end to end solution managing renewable

variation, controllable demand capacity, grid automation,

situational awareness, and verification and education

through metering. Ultimately, providing for greater energy

usage while reducing emissions and reliance on fossil

fuels.”

On the flip side, two of the clean energy areas that offer

the largest growth potential currently are biomass and

storage. Technology is currently being utilized and

developed that will allow for significant growth rates in the

near future. Geothermal is also underutilized and offers

growth potential, however drilling the holes necessary to

utilize the technology more fully are prohibitive in the near

term.

Solar and wind technologies are much more fully

developed than their clean energy counterparts, and are

likely to experience reduced costs, making them more

likely to be adopted more fully in the future. Finally, coal

offers far less potential, especially considering the

worldwide trend of decreasing emissions, which are likely

to become more stringent in the future.

For the transfer to more clean energy sources to be truly

successful, a collaborative approach utilizing multiple

energy sources based on location and needs, as well as

employing storage technology to insure the highest level

of utilization of said resources is necessary.

Utilities should be encouraged to investigate ways that the

renewable energy mix they utilize can be enhanced

through employing renewable, clean energy sources that

meet their geographic demands, while implementing

storage technology to store the clean energy they create

during off-peak times for use during peak demand

periods, thus improving performance and increasing

efficiency.




Zpryme Credits Editor

Megan Dean

Managing Editor

Samarth Bahl

Research Lead

Stefan Trifonov

Special Thanks To Ken Geisler

VP of Strategy; Smart Grid Division Siemens

John McDonald

Director, Technical Strategy & Policy

Development; GE Digital Energy Business

GE

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