unlv_8-7-06_csp_v8-06

Assessment of Concentrating Solar Power Generation : 

Assessment of Concentrating Solar Power Generation R. Boehm (Engineering) and K. Schwer (Business) with input from many others

Description/Background : 

2 Description/Background Assess factors that may impact the possible development of concentrating solar power generation technologies in Nevada and the Southwest (utility scale) Consider both negative and positive aspects Include technical, economic, and political issues

Best Resource in World–A Major Motivation : 

3 Best Resource in World–A Major Motivation The Mojave Desert is recognized as one of the best solar resources in world for CSP. This is key. Solar resources – 7,000 to 7,500 W-hr/sq-m A football field would generate 1,217 MWhr/yr

State Policy for Renewable Energy : 

4 State Policy for Renewable Energy Governor Guinn put forth a Nevada Energy Protection Plan. The State Office of Energy issued a Comprehensive Energy Plan. With the threat of rising energy costs, increases in population, and numerous environmental concerns, the state is developing and encouraging the use of alternative energy and is also encouraging “green” buildings in both the public & private sectors. Over 95% of the energy used in the state is imported. In 2003 over $2.5 billion spent on energy. The estimate today is $4 billion. The majority of energy costs leave the state. All energy produced within the state helps our economy by keeping the funds here. We are rich in renewable resources.

Projects Underway : 

5 Projects Underway Current CSP projects in Nevada Solargenix Energy Inc. (Nevada Solar One 64 MW, slated for March 2007) UNLV High Concentration Photovoltaic (HCPV) 25 kW Amonix system Nevada Power 75 kW HCPV Amonix systems UNLV dish concentrating PV system (demonstration) More total MW currently in each Arizona and California

Policy Framework & Partnerships : 

6 Policy Framework & Partnerships RPS (Nevada's Portfolio Standard (PS) increased to 20% and added energy efficiency measures Net Metering Solar Generations (Created by the Renewable Energy Task Force and implemented by Sierra Pacific Resources) Green Power Program (DRI and SPR) IBEW training (AFL-CIO)

Nevada Task Force : 

7 Nevada Task Force Established by the Legislature in 2001 Annual reports: Provided to the Legislature outlining updates, trends and recommendations Composition: Appointed by Governor and Legislative Leadership. Representatives of industry, private sector, experts in the renewable field Web site: (www.Nevadarenewables.org)

Utility Perspectives : 

8 Utility Perspectives Current peak capacity: NPC 5400 MW, SPPC 1750 MW, estimated to grow at 5% per year One of best direct beam solar fluxes in the world Renewables viewed as having good externalities, including environmental, jobs, and less conventional fuel dependence Renewables are priced higher than conventional Allows for large additions to RPS requirements Capital investment (usually large) is a potential impediment

Utility Perspectives : 

9 Utility Perspectives Have had trouble with developers following through on contracts RPS for Nevada is viewed as quite similar to California, but other states do have some other approaches Could use a PPA or own facilities, but that depends upon the goal of the project and the costs All rules ultimately initiate from the legislature to be fleshed out by the PUC SPR does assist in bringing of solar businesses to the state through the Nevada Development Authority

Solar Future--Economic Aspects : 

10 Solar Future--Economic Aspects Nevada is not currently a big player in the industry, but … Industry is in its infancy Industry is not geographically anchored Nevada is a strategic location for solar resources and offers an attractive business environment

Target Solar Development : 

11 Target Solar Development Instigate dialogues between manufacturing and producers Foster a culture of innovation Encourage local procurement through use of the renewable-energy portfolio standard Anticipate future needs to keep the region at the cutting edge.

The Impacts of Water Availability : 

12 The Impacts of Water Availability One issue that has potentially large impacts on CSP development is the availability of water. Unlike conventional plants (say gas turbine plants), CSP always needs some water for cleaning. Wet cooling can improve plant performance but uses considerable water. Since the desert Southwest is short on water, the water use becomes a bit deal.

Quantifying Effects of Wet vs. Dry Cooling : 

13 Quantifying Effects of Wet vs. Dry Cooling As noted, water can have a big effect on plant performance. Applies to Rankine-based cycles. Part of study is looking at potential improvements in dry cooling systems.

Wet vs. Dry Cooling : 

14 Wet vs. Dry Cooling 700 MWe Power Plant

Power Grid Issues : 

15 Power Grid Issues Southern Nevada Power Generation, Transmission (69 kV, 138 kV, 230 kV, 345 kV, 500 kV) and Interconnection System Electric transmission extensions proposed along the Eastern & Western borders In the last 7 years 490 miles of new transmission have been constructed. 60 miles of 500kV added by 2007 30 miles of 345 kV added by 2008

Suitable Locations for CSP(Terrain & transmission Constraints) : 

16 Suitable Locations for CSP(Terrain & transmission Constraints) Blue Area (Jackass Flats): Limit: 70 MW + Local Load White Area (Pahrump Valley, Indian Springs): Limit: 300 MW + Local Load Green Area (Apex, Overton, Mesquite): Limit: 300 MW + Local Load Red Area (Searchlight): Limit: 225 MW + Local Load. Yellow Areas (wilderness): No transmission access Generally, BLM owns most of the land in the state.

Status/Description of Phases : 

17 Status/Description of Phases Economic development studies are completed Grid issues and layout considerations are finished Political aspects still being summarized Continuing work related to trying to decrease costs with new approaches

Possible Futures:Financing Renewable Energy in Nevada : 

18 Possible Futures:Financing Renewable Energy in Nevada Nevada needs a conduit issuer to pursue CREBs and renewable energy bond issuances in general Many important decisions require legislative action and the legislature only meets every other year Renewable energy needs to be the main priority for some part of the State Government Without a body or agency to guide and push renewable energy, Nevada will not maximize its potential

Possible Futures: Goals for the Renewable Energy Authority of Nevada (REAN) : 

19 Possible Futures: Goals for the Renewable Energy Authority of Nevada (REAN) To help Nevada fulfill its potential in renewable energy production by creating a conduit issuer To develop a renewable industry in Nevada that will lead the nation (world?) Whether it be a commission, power authority, development agency, or another entity, the goals and agenda are what matter

Possible Futures: Specific Goals of REAN : 

20 Possible Futures: Specific Goals of REAN Promote development through tax incentives and/or eminent domain, creating development zones Promote transmission of renewable energy in efficient and cost effective ways Promote the market for renewables Become a resource for developers with reference materials on feasibility, transmission, environmental remediation, and to act as intermediary with the BLM Promote education and research in schools and universities Assist development by providing access to capital markets through bond issuance

Possible Futures: Ways to Fund REAN : 

21 Possible Futures: Ways to Fund REAN Fees could be charged at the discretion of the agency Fees would be collected from debt issuance as a conduit issuer Taxation could be imposed on renewable energy Carbon offset program

Possible Futures: Carbon Offsets : 

22 Possible Futures: Carbon Offsets A program that calculates your carbon usage or “footprint” A dollar value is calculated to offset one ton of annual carbon emissions Your footprint is offset by paying into a fund that promotes renewable energy or plants trees, etc. by reducing carbon emissions by an amount equal to your footprint Payments are tax deductible

Nevada’s Challenge : 

23 Nevada’s Challenge Locate solar projects near loads Mitigate barriers Legislate renewable friendly laws Use solar resources for public good