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At least 1,711 records · Page 95

High Pressure Biomass Gasification

According to the Billion Ton Report, the U.S. has a large supply of biomass available that can supplement fossil fuels for producing chemicals and transportation fuels. Agricultural waste, forest residue, and energy crops offer potential benefits: renewable feedstock, zero to low CO 2 emissions depending on the specific source, and domestic supply availability. Biomass can be converted into chemicals and fuels using one of several approaches: (i) biological platform converts corn into ethanol by using depolymerization of cellulose to form sugars followed by fermentation, (ii) low-temperature pyrolysis to obtain bio-oils which must be treated to reduce oxygen content via HDO hydrodeoxygenation), and (iii) high temperature pyrolysis to produce syngas (CO + H 2 ). This last approach consists of producing syngas using the thermal platform which can be used to produce a variety of chemicals and fuels. The goal of this project was to develop an improved understanding of the gasification of biomass at high pressure conditions and how various gasification parameters might affect the gasification behavior. Since most downstream applications of synags conversion (e.g., alcohol synthesis, Fischer-Tropsch synthesis etc) involve utilizing high pressure catalytic processes, there is an interest in carrying out the biomass gasification at high pressure which can potentially reduce the gasifier size and subsequent downstream cleaning processes. It is traditionally accepted that high pressure should increase the gasification rates (kinetic effect). There is also precedence from coal gasification literature from the 1970s that high pressure gasification would be a beneficial route to consider. Traditional approach of using thermogravimetric analyzer (TGA) or high-pressure themogravimetric analyzer (PTGA) worked well in understanding the gasification kinetics of coal gasification which was useful in designing high pressure coal gasification processes. However, similar approach for biomass gasification was not very useful and was the impetus for this study. Specifically, we aimed this study at three broad objectives: (i) defining operating conditions at which C 2 -C 4 hydrocarbons are formed since these represent loss of carbon efficiency, (ii) understanding the formation of tar species which create downstream processing difficulties in addition of carbon efficiency loss, and (iii) kinetics of biomass gasification where it would be possible to understand the effect of operating conditions and gas phase composition.

09 BIOMASS FUELS↗

Diagnostic Tool for Measuring Early Chemical Signatures of Pond Crash

The DOE is devoted to improving national energy security and reducing carbon emissions through the development of renewable alternatives to fossil fuel usage. This work demonstrates a pathway to improve the feasibility of large-scale biofuel production by reducing the occurrences of pond failures and their associated economic burdens. We have done this by identifying unique volatile chemical signals that indicate predator attack on an algal biofuel pond. These volatiles are easy to collect in the field and could be rapidly analyzed for state-of- health monitoring. This will allow producers to intervene early during predator attack on a pond and minimize crop loss.

09 BIOMASS FUELS↗

Production of Biocrude in an Advanced Photobioreactor-Based Biorefinery

Algenol Biotech, the National Renewable Energy Laboratory (NREL), Georgia Institute of Technology, Arizona State University, and Reliance Industries formed a team to advance the state of the art in algal biomass production and downstream processing technologies, with the end goal of a sustainable, economically viable biofuel intermediate (BFI, biocrude) product. The project included examination of high value co-product production as a market entry strategy and for enhancing the economics of a biorefinery for BFI production. The project targeted innovations in biology, operations, and engineering. The goals of the project were: BFI productivity greater than 4,000 gal-BFI/acre-yr on an annualized basis; energy efficient innovations in downstream operations resulting in an energy expenditure less than 10% of the BFI energy content and a carbon footprint reduction of more than 60% compared to fossil alternatives; and a comprehensive Techno-Economic Analysis (TEA) that identifies limiting factors for commercial viability of a photobioreactor (PBR)-based biofuel product. The project achieved the overall objectives. Strain development efforts led to the identification of a strain (Cyanobacterium sp. AB1166) that, relative to the previous best strain (Cyanobacterium sp. AB1), exhibited a ~10% increase in productivity under commercially-relevant cultivation conditions and also resulted in cultures with a >50% reduction in viscosity such that harvesting efficiency was improved; these results represent achievement of key project milestones. Progress was also made at NREL in altering the biochemical composition of algal biomass to improve the yield of BFI produced via HTL. These strain enhancements coupled with improved outdoor cultivation practices, including semi-continuous operation, increased areal biomass productivity by nearly 80% over the established baseline productivity. The annualized productivity achieved (26.8 g/m2-d), paired with HTL conversion yields realized at NREL and RIL (38% ± 2% BFI), translates to 4,100 gal-BFI/acre-yr, exceeding the FY20 BETO goal of 3,700 gal-BFI/acre-yr. Significant progress was also demonstrated in large scale PBR-based production system design, operability, and cost reduction. A 24,000-L production module comprised of 240 interlinked PBRs was constructed and successfully operated outdoors for over one year in Fort Myers, Florida. Aided by a state-of-the-art productivity model, the productivities achieved convincingly demonstrated scalability of laboratory results determined at the mL to L scale to large-scale outdoor operations exceeding 20,000 L. The system was used to cultivate Arthrospira platensis (Spirulina), an industrially-relevant cyanobacterium and source for phycocyanin, an approved blue food colorant that Algenol is developing as a risk reduction strategy for future biofuel projects and as a potential business opportunity. A key project milestone to develop phycocyanin extraction and purification technologies was achieved ahead of schedule, and product samples received positive feedback from potential customers. The production and downstream operations data generated in this project were used to conduct and refine Techno-Economic and Life Cycle Assessments to provide research guidance for reducing the costs and environmental footprint of algal biofuel and co-product manufacturing plants. Several CO 2 supply scenarios for an algal biorefinery were identified as being capable of providing a large (>60%) reduction in carbon footprint in comparison to gasoline. The TEA assessments incorporated detailed comparisons of PBR versus open pond production systems, yielding a 3-fold higher areal productivity for PBRs and suggesting overall production cost parity for the two systems. The progress in this ABY2 project addressed many of the the barriers identified for the Advanced Algal Systems R&D Program and are directly relevant to achieving the established BETO goals associated with large scale biofuel production and cost reduction.

09 BIOMASS FUELS↗

Characterizing the Defense Hierarchy of Populus trichocarpa

The U.S. Departments of Energy and Agriculture are developing bioenergy crops as a sustainable alternative to traditional fossil fuels. Plant disease threatens this effort by inhibiting the efficient production of plant feedstocks for bioenergy. In particular, biotrophic Melampsora leaf rust pathogens can increase morbidity in Populus trichocarpa and its hybrids (aka poplars), the primary woody feedstocks for bioenergy. Controlling rust disease in plantations is thus critical to the success of the poplar bioenergy program. Current efforts to control rust disease focus on plant genetic resistance. However, with novel pathogenic variation generated by the global movement of pathogens and their hybridization, it is increasingly clear that controlling rust disease in a long-lived plant like Populus depends on our ability to understand and manage not only genes for rust resistance, but also short-lived plant microorganisms that contribute to defense against rust (aka “defense mutualists”). Our proposed research thus seeks to develop an integrative, hierarchical model of P. trichocarpa defense that integrates genetic resistance and defense mutualists. Our overarching hypothesis is that defense against Melampsora rust is biologically degenerate, with major and minor plant resistance genes, plant defense compounds, and defense mutualists within the microbiome each contributing to rust resistance under different circumstances. The specific aims of our study will test the placement of each of these factors in the defense hierarchy. Ultimately, it is our hope that disease management strategies harnessing both resistance genes and naturally occurring defense mutualists of P. trichocarpa, and an appreciation of the ecological circumstances in which each is effective, will maximize plant resistance and productivity while minimizing impacts on the surrounding ecological landscape.

59 BASIC BIOLOGICAL SCIENCES↗

Four-Stage Multi-Physics Simulations to Assist Temperature Sensor Design for Industrial-Scale Coal-Fired Boiler

The growth of renewable energy sources presents a pressing challenge to the operation and maintenance of existing fossil fuel power plants, given that fossil fuel remains the predominant fuel source, responsible for over 60% of electricity generation in the United States. One of the main concerns within these fossil fuel power plants is the unpredictable failure of boiler tubes, resulting in emergency maintenance with significant economic and societal consequences. A reliable high-temperature sensor is necessary for in situ monitoring of boiler tubes and the safety of fossil fuel power plants. In this study, a comprehensive four-stage multi-physics computational framework is developed to assist the design, optimization installation, and operation of the high-temperature stainless-steel and quartz coaxial cable sensor (SSQ-CCS) for coal-fired boiler applications. With the consideration of various operation conditions, we predict the distributions of flue gas temperatures within coal-fired boilers, the temperature correlation between the boiler tube and SSQ-CCS, and the safety of SSQ-CCS. With the simulation-guided sensor installation plan, the newly designed SSQ-CCSs have been employed for field testing for more than 430 days. The computational framework developed in this work can guide the future operation of coal-fired plants and other power plants for the safety prediction of boiler operations.

42 ENGINEERING↗

Solar heating and cooling

To emphasize energy conservation and low cost energy, the systems of solar heating and cooling are analyzed and compared with fossil fuel systems. The application of solar heating and cooling systems for industrial and domestic use are discussed. Topics of discussion include: solar collectors; space heating; pools and spas; domestic hot water; industrial heat less than 200 F; space cooling; industrial steam; and initial systems cost. A question and answer period is generated which closes out the discussion.

Bartera, R. E.↗

Selective Emitters

This invention relates to a small particle selective emitter for converting thermal energy into narrow band radiation with high efficiency. The small particle selective emitter is used in combination with a photovoltaic array to provide a thermal to electrical energy conversion device. An energy conversion apparatus of this type is called a thermo-photovoltaic device. In the first embodiment, small diameter particles of a rare earth oxide are suspended in an inert gas enclosed between concentric cylinders. The rare earth oxides are used because they have the desired property of large emittance in a narrow wavelength band and small emittance outside the band. However, it should be emphasized that it is the smallness of the particles that enhances the radiation property. The small particle selective emitter is surrounded by a photovoltaic array. In an alternate embodiment, the small particle gas mixture is circulated through a thermal energy source. This thermal energy source can be a nuclear reactor, solar receiver, or combustor of a fossil fuel.

Chubb, Donald L.↗

High-Temperature, Wirebondless, Ultracompact Wide Bandgap Power Semiconductor Modules

Silicon carbide (SiC) and other wide bandgap semiconductors offer great promise of high power rating, high operating temperature, simple thermal management, and ultrahigh power density for both space and commercial power electronic systems. However, this great potential is seriously limited by the lack of reliable high-temperature device packaging technology. This Phase II project developed an ultracompact hybrid power module packaging technology based on the use of double lead frames and direct lead frame-to-chip transient liquid phase (TLP) bonding that allows device operation up to 450 degC. The new power module will have a very small form factor with 3-5X reduction in size and weight from the prior art, and it will be capable of operating from 450 degC to -125 degC. This technology will have a profound impact on power electronics and energy conversion technologies and help to conserve energy and the environment as well as reduce the nation's dependence on fossil fuels.

Elmes, John↗

Leveraging State Clean Water Revolving Funds to Expand Clean Energy Financing

To meet clean energy goals, states will need significant capital. Federal funding from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act will help, including by capitalizing clean energy state revolving loan funds (RLFs). States can leverage state clean water revolving funds to finance even more clean energy improvements. New York and Pennsylvania have used this innovative mechanism to extend the impact of their clean energy loan programs. For states looking to extend the reach of their clean energy financing programs, the brief: -Explains how each state leveraged their state revolving funds, -Identifies critical success factors for doing so, and -Offers key elements for replicating this model In New York, New York State Energy Research and Development Authority structured a sale of bonds secured by the repayments from a portfolio of residential energy efficiency loans from its Green Jobs – Green New York Program, with the additional support of a guarantee from the state’s clean water revolving fund. The Pennsylvania Treasury Department received a direct investment of funds from Pennsylvania’s clean water revolving fund to support the relaunch of the Keystone Home Energy Loan Program (HELP), which had previously been shuttered due to lack of support funding. From our review of these two case studies, when facilitating state clean water revolving fund transactions to support clean energy lending, the following critical success factors emerged: -Reference to preventing atmospheric deposition resulting from the combustion of fossil fuels in the state’s Clean Water Act Section 319 Nonpoint Source Pollution Management Plan, which sets out that state’s strategy for reducing pollution into state waterways. -Strong relationships and trust between the clean water revolving fund administrator and the state agency administering the clean energy loan program. -Limited funding exposure for the clean water revolving funds—which are generally large and well capitalized—to ensure that any losses experienced by clean water revolving funds would have a negligible impact on the fund’s ability to support core water and wastewater projects. -Willingness, on the part of the clean water revolving fund administrator, to innovate and engage in careful analysis to support transaction structuring, and support from state energy partner organizations. The brief provides case studies of these states’ experiences, critical success factors, and key elements for replicating the model.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

2013 Wind Technologies Market Report

This report describes the status of the U.S. wind energy industry market in 2013, its trends, performance, market drivers and future outlook. Annual wind power capacity additions in the United States were modest in 2013, but all signals point to more-robust growth in 2014 and 2015. With the industry’s primary federal support—the production tax credit (PTC)—only available for projects that had begun construction by the end of 2013, the next couple years will see those projects commissioned. Near-term wind additions will also be driven by recent improvements in the cost and performance of wind power technologies. At the same time, the prospects for growth beyond 2015 are uncertain. The PTC has expired, and its renewal remains in question. Continued low natural gas prices, modest electricity demand growth, and limited near-term demand from state renewables portfolio standards (RPS) have also put a damper on industry growth expectations. These trends, in combination with increasingly global supply chains, continue to impact domestic manufacturing of wind equipment. What they mean for wind power additions through the end of the decade and beyond will be dictated in part by future natural gas prices, fossil plant retirements, and policy decisions. At the same time, recent declines in wind energy costs and prices and the potential for continued technological advancements have boosted future growth prospects.

17 WIND ENERGY↗

Processing and properties of a solid energy fuel from municipal solid waste (MSW) and recycled plastics

Highlights: • Briquetting was used to produce solid fuels from municipal solid waste and recycled plastics. • Optimal drying, processing temperature and pressure were found to produce stable briquettes. • Addition of waste plastics yielded heating values comparable with typical coal feedstocks. • This processing method improves utilization of paper and plastic diverted from landfills. - Abstract: Diversion of waste streams such as plastics, woods, papers and other solid trash from municipal landfills and extraction of useful materials from landfills is an area of increasing interest especially in densely populated areas. One promising technology for recycling municipal solid waste (MSW) is to burn the high-energy-content components in standard coal power plant. This research aims to reform wastes into briquettes that are compatible with typical coal combustion processes. In order to comply with the standards of coal-fired power plants, the feedstock must be mechanically robust, free of hazardous contaminants, and moisture resistant, while retaining high fuel value. This study aims to investigate the effects of processing conditions and added recyclable plastics on the properties of MSW solid fuels. A well-sorted waste stream high in paper and fiber content was combined with controlled levels of recyclable plastics PE, PP, PET and PS and formed into briquettes using a compression molding technique. The effect of added plastics and moisture content on binding attraction and energy efficiency were investigated. The stability of the briquettes to moisture exposure, the fuel composition by proximate analysis, briquette mechanical strength, and burning efficiency were evaluated. It was found that high processing temperature ensures better properties of the product addition of milled mixed plastic waste leads to better encapsulation as well as to greater calorific value. Also some moisture removal (but not complete) improves the compacting process and results in higher heating value. Analysis of the post-processing water uptake and compressive strength showed a correlation between density and stability to both mechanical stress and humid environment. Proximate analysis indicated heating values comparable to coal. The results showed that mechanical and moisture uptake stability were improved when the moisture and air contents were optimized. Moreover, the briquette sample composition was similar to biomass fuels but had significant advantages due to addition of waste plastics that have high energy content compared to other waste types. Addition of PP and HDPE presented better benefits than addition of PET due to lower softening temperature and lower oxygen content. It should be noted that while harmful emissions such as dioxins, furans and mercury can result from burning plastics, WTE facilities have been able to control these emissions to meet US EPA standards. This research provides a drop-in coal replacement that reduces demand on landfill space and replaces a significant fraction of fossil-derived fuel with a renewable alternative.

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

Implementation of optimum solar electricity generating system

Under the 10{sup th} Malaysian Plan, the government is expecting the renewable energy to contribute approximately 5.5% to the total electricity generation by the year 2015, which amounts to 98MW. One of the initiatives to ensure that the target is achievable was to establish the Sustainable Energy Development Authority of Malaysia. SEDA is given the authority to administer and manage the implementation of the feed-in tariff (FiT) mechanism which is mandated under the Renewable Energy Act 2011. The move to establish SEDA is commendable and the FiT seems to be attractive but there is a need to create awareness on the implementation of the solar electricity generating system (SEGS). In Malaysia, harnessing technologies related to solar energy resources have great potential for implementation. However, the main issue that plagues the implementation of SEGS is the intermittent nature of this source of energy. The availability of sunlight is during the day time, and there is a need for electrical energy storage system, so that there is electricity available during the night time as well. The meteorological condition such as clouds, haze and pollution affects the SEGS as well. The PV based SEGS is seems to be promising electricity generating system that can contribute towards achieving the 5.5% target and will be able to minimize the negative effects of utilizing fossil fuels for electricity generation on the environment. Malaysia is committed to Kyoto Protocol, which emphasizes on fighting global warming by achieving stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. In this paper, the technical aspects of the implementation of optimum SEGS is discussed, especially pertaining to the positioning of the PV panels.

14 SOLAR ENERGY↗

Operation of the NETL Chemical Looping Reactor with Natural Gas and a Novel Copper-Iron Material

The proposed Clean Power Plan requires CO 2 emission reductions of 30% by 2030 and further reductions are targeted by 2050. The current strategies to achieve the 30% reduction targets do not include options for coal. However, the 2016 Annual Energy Outlook suggests that coal will continue to provide more electricity than renewable sources for many regions of the country in 2035. Therefore, cost effective options to reduce greenhouse gas emissions from fossil fuel power plants are vital in order to achieve greenhouse gas reduction targets beyond 2030. As part of the U.S. Department of Energy’s Advanced Combustion Program, the National Energy Technology Laboratory’s Research and Innovation Center (NETL R&IC) is investigating the feasibility of a novel combustion concept in which the GHG emissions can be significantly reduced. This concept involves burning fuel and air without mixing these two reactants. If this concept is technically feasible, then CO 2 emissions can be significantly reduced at a much lower cost than more conventional approaches. This indirect combustion concept has been called Chemical Looping Combustion (CLC) because an intermediate material (i.e., a metal-oxide) is continuously cycled to oxidize the fuel. This CLC concept is the focus of this research and will be described in more detail in the following sections. The solid material that is used to transport oxygen is called an oxygen carrier material. The cost, durability, and performance of this material is a key issue for the CLC technology. Researchers at the NETL R&IC have developed an oxygen carrier material that consists of copper, iron, and alumina. This material has been tested extensively using lab scale instruments such as thermogravimetric analysis (TGA), scanning electron microscopy (SEM), mechanical attrition (ASTM D5757), and small fluidized bed reactor tests. This report will describe the results from a realistic, circulating, proof-of-concept test that was completed using NETL’s 50kW th circulating Chemical Looping Reactor (CLR) test facility.

01 COAL, LIGNITE, AND PEAT↗

An Environmental and Societal Analysis of the US Electrical Energy Industry Based on the Water–Energy Nexus

To meet rising energy demands, power plant operations will expand, influencing the interactions between the water–energy nexus and society. However, a major challenge is integration of social dimensions within electricity generation. To address this, we generate a baseline dataset using US public data (2014–2019) from the Energy Information Administration and US Bureau of Labor Statistics. We identify the rate of energy consumed, CO 2 , SO 2 and NO x emissions generated, and water used per MWh net electricity as well as employee wellbeing per unit MW capacity during electricity generation. Rates of energy consumption (MMBtu/MWh) decreased 4.9%, but water consumption and withdrawal (m 3 /MWh) both increased 0.93% and 0.31%, respectively. Emissions of CO 2 , SO 2 and NO x decreased 22.64%, 75% and 25% MT/MWh, respectively. Thermoelectric cooling withdrawal and consumption is led by natural gas (50.07%, 38.31%), coal (29.61%, 25.07%), and nuclear energies (13.55%, 18.99%). Electric power generation contributes 0.06 injuries–illnesses/TWh and 0.001 fatalities/TWh, of which fossil fuels contributed 70% and 15%, respectively. Fossil fuels led in average annual employment (0.02 employees/MW) with low cost salaries (USD 0.09/MW) likely due to high collective capacity, which is declining. Estimated rates in this study and framework will aid power industry transition and operational decision makers.

24 POWER TRANSMISSION AND DISTRIBUTION↗

How Much Are We Saving after All? Characterizing the Effects of Commonly Varying Assumptions on Emissions and Damage Estimates in PJM

In recent years, several methods have emerged to estimate the emissions and health, environmental, and climate change damages avoided by interventions such as energy efficiency, demand response, and the integration of renewables. However, differing assumptions employed in these analyses could yield contradicting recommendations regarding intervention implementation. We test the magnitude of the effect of using different key assumptions—average vs marginal emissions, year of calculation, temporal and regional scope, and inclusion of nonemitting generation—to estimate Mid-Atlantic region power pool (PJM) emissions and damage factors. We further highlight the importance of factor selection by evaluating three illustrative 2017 power system examples in PJM. We find that for a simple building lighting intervention, using average emissions factors incorporating nonemitting generation underestimates avoided damages by 45% compared to marginal factors. For PJM demand response, outdated marginal emissions factors from 2016 overestimate avoided damages by 25% compared to 2017 factors. Our assessment of PJM summer load further suggests that fossil-only average emissions factors overestimate damages by 63% compared to average factors incorporating nonemitting generation. Here, we recommend that energy modelers carefully select appropriate emissions metrics when performing their analyses. Furthermore, since the U.S. electric grid is rapidly changing, we urge decision-makers to frequently update (and consider forecasting) grid emissions factors.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Hyperlight Energy 7342 10-26-19 (Final Report)

One of the principal issues preventing the widescale deployment of Concentrating Solar Power (CSP) technologies for power and process heat generation is the high cost per unit energy produced. While the operating expenses of a solar plant are often far less than those of a comparable natural gas plant due to zero fuel costs, the increased capital costs of the system, and the collector field in particular, are a significant barrier to project feasibility. Hyperlight Energy has been funded under the DOE COLLECTS program to further develop its novel Linear Fresnel Reflector (LFR) design to meet the DOE’s programmatic goal of creating a solar collector that has an installed cost of less than $\$$99/m2 with a pathway towards a future price of $\$$50/m2. Hyperlight Energy has a unique, inexpensive design featuring four-inch-wide mirror slats mounted on 48 ft long extruded plastic D-profile tubes. By removing the steel and concrete of a traditional collectors Hyperlight is able to drastically decrease the materials and fabrication costs of the primary reflectors. The goal of this project was to prove the manufacturability of these reflectors, install a half-acre system of the collector, and test the performance of the field to determine the actual cost of the energy produced by the solar field. During the course of the project the half-acre system was successfully manufactured and deployed at the company’s demonstration site in Brawley, CA. The total collector cost came in under the desired $\$$99/m2 goal and proved the feasibility of this new type of solar field. With further planned cost reductions the DOE’s ultimate goal of $\$$50/m2 appears to be achievable. The data generated from this project has already been sufficient to secure Hyperlight Energy’s first commercial project, and continued operations will help to validate the product’s lifespan and performance over time. This will provide invaluable support for future installations. Hyperlight Energy has won a contract for a three-acre commercial project, but the company plans to aggressively pursue multiple similar and larger-scale projects in the near future. At present, these projects will serve to replace natural gas fired boilers in industrial processes, reducing the emissions of the associated plants. In the future, potential project sites will expand to include enhanced oil recovery (EOR) and other uses in the transportation fuel pathway, leading to fuels with a lower carbon intensity (CI). This path will allow renewable energy to begin to make an impact on the industrial process heat sector, which is one the primary consumers of natural gas and other fossil fuels in the country, and which is beyond the scope of other existing renewable technologies that exclusively generate electricity. Only by replacing the fossil fuels burned in industrial processes will the DOE’s emissions goals be achieved.

14 SOLAR ENERGY↗

Role of Alternative Energy Sources: Wind Technology Assessment Brief [Slides]

This peer-reviewed analysis is one of a series of Technology Assessments of power production and evaluates the role of wind power in the future energy portfolio of the U.S. Wind power is evaluated with respect to resource base, growth potential, environmental profile, costs, barriers, risks, and expert opinions. Wind can be an important energy resource for the U.S., but as its contribution to total U.S. electricity generation increases, it will require a significant amount of fossil resources for backup power to maintain grid reliability. Wind power has exhibited significant growth over the last decade, but most of this growth was made possible through financial incentives such as temporary renewable energy tax credits. Technology advances that result in lower project costs and energy storage devices that enable better power reliability remain crucial research and development areas for the long-term integration of wind power.

17 WIND ENERGY↗

Carbon pricing, nuclear power and electricity markets

In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised electricity market, looking at the impact of the seven key variables and provide conclusions on the portfolio that a utility would be advised to maintain, given the need to limit risks but also to move to low carbon power generation. Such portfolio diversification would not only limit financial investor risk, but also a number of non-financial risks (climate change, security of supply, accidents). (authors)

29 ENERGY PLANNING, POLICY, AND ECONOMY↗