Utility of the Future: New Technologies in Integrated Energy Systems San Francisco, California June

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Utility of the FutureNew Technologies in
Integrated Energy SystemsSan Francisco,
CaliforniaJune 17, 2002

• Terry Surles, Ph.D
• Public Interest Energy Research (PIER)
• California Energy Commission

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Driving to a Sustainable FutureThe Es are
Linked

• Environment
• Energy
• Economics
• Equity
• Education

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Issues

• Complex system with lack of systems perspective
• Energy is only, intermittently, a big deal
• Rube Goldberg approach to energy policy
• Market is unable to address all societally or
  politically acceptable externalities
• New technologies to do not address Joe Bagadonitz
  needs

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Distributed Energy ResourcesExternalities
(Attributes)

• Environmental benefits Resource development,
  emissions, GHG
• System benefits Transmission congestion,
  infrastructure interdependencies
• Reduction of defense and security costs
• Cost savings Life cycle perspective, resource
  availability
• Potential collateral benefits Thermally-activated
  technologies, waste reduction alternative

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Barriers to DG Implementation

• Potential for negative grid impacts
• Utility resistance
• backup rates
• deferral rates
• overly strict interconnection requirements
• high grid-access charges (stranded cost recovery)
• Permitting headaches
• High standby/backup power costs
• Capital constraints
• Electric rate changes, fuel price volatility
• Performance risk and guarantees

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Our RD Program Must Address Future Market
Scenarios
Regulated
Status Quo

• New energy systems
• Same players

De-centralized
Centralized

• Same energy systems
• New players

Supermarket of Choices
De-regulated
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California has Established a 62M/yr.Public
Interest Energy Research Program (PIER)
Quality Reliable and Available
Economy Affordable Solutions
Environment Protect and Enhance
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Carbon Management An Approach for Integrated
Energy Systems RD
Carbon Management
Sequestration
Btu GSP
Efficiency
lt
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California and United States Electricity per
Capita Trends Since 1976
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Reducing Electricity Use by 8
Leads to Additional Environmental
Benefits(Emissions Reduction)

• 2,044 tons CO
• 2,307 tons NOx
• 175 tons SOx
• 263 tons PM10
• 600,000 MT CO2

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Electricity Generating Capacity for 150 Million
Refrigerators and Freezers in the US
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PIER Buildings Program HighlightsBerkeley Lamp

• Model partnership between CEC/DOE/California
  utilities
• PIER funded Phase 1 to develop task/ambient lamp
  concept
• DOE funded Phase 2 to develop specific lamp
  configuration
• PIER was instrumental in moving the technology
  into the marketplace via coordination with
  utility Emerging Technology Coordinating Council

Project is both a technical success and a
customer success
http//www.energy.ca.gov/pier/pr.html
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Potential California Home with Efficiency and
Integrated Solar
1. Translucent Super- Insulating Power
Generating Roof 2. Inverter, Storage for TOU 3.
DC Dedicated Use 4. Net Metering 5. Night Breeze
Cooling 6. Grid-friendly Appliances 7. Lighting
for California Kitchens 8. Community based
energy solutions
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PowerLights PowerGuard
PowerLights insulated 30 year roof system
reduces building air conditioning loads while
its PV surface generates electricity during hot
and expensive peak summer hours
While California is known for its hot dry
summers, that same solar resource provides a
clean, safe and reliable way to generate
electricity
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The Wind Turbine Company

• Design, develop and demonstrate a utility-scale
  wind turbine
• Horizontal axis, two-blade, downwind design
• Prototype developed for PIER and tested at NREL
  rated at 250 kW
• Commercial prototype demonstration sited at the
  Fairmont Reservoir in LADWP territory for a 500
  kW - scaled up to 750 kW - wind turbine
  demonstration to begin in October 2001
• Goal is to produce electricity ? 0.035 cents per
  kWh per 100 unit wind farms with wind resources ?
  15 mph

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CA Real Time Electricity Price Daily Variations
For March 11, 2002 (California ISO)
50/MWh
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Xonon Cool Combustion System - Catalytica
Energy Systems, Inc.

• Description
• Gas turbine combustion system that controls
  combustion temperature to prevent the formation
  of NOX
• Benefits
• Lower NOX emissions without SCR
• Can retrofit existing turbines
• Allows deployment of smaller turbines for DG
  and
• Expandable to large, central station turbines.

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Fuel Cell / Turbine Hybrids

• Integration of a fuel cell and a gas turbine into
  a single unit
• Efficiency 70
• Cost 20-25 lower than non-hybrid fuel cell

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Combined Heat and Power (CHP)CO2 emissions with
and without CHP
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CEC is Developing a Biogas Solicitation that can
Include MSW to Energy
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Distributed Energy ResourcesCertification

• Certification and labeling criteria
• Test protocols and test results
• Handbook on interconnection agreements
• Web-based information hotline and technical
  training material
• Interoperability requirements

National approach will create consistency and
common terminology
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Operational Tools for Restructured Electricity
Markets Must

• Recognize that the objectives have moved from
  modeling machines and engineering analysis to
  understanding and coping with market behavior
• Present real-time information to operators in
  readily understood forms that facilitates action
• Measure, monitor, assess, and predict both
  system performance and the performance of market
  participants
• Incorporate the latest advances in sensing,
  communication, computing, visualization, and
  algorithmic techniques and technologies

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Enabling Technology Communications, Control, and
Information Systems

• Takes advantage of technologies developed in
  exogenous areas
• Allows for partnerships with private sector
  developers and academic centers
• Provides additional value for distributed energy
  resources and end-use technologies
• Critical component of load management, demand
  response, demand-side management

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Volts Amps Reactive Management Tools

• Could have prevented 1996 blackout of West Coast
  which cost California 100s of millions
• Presents real-time info on system conditions in
  readily understood forms
• Accelerates initiation of corrective actions by
  30 minutes or more
• Active demonstration at the CAISO

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Dynamic Transmission Line Rating

• Congestion cost 169M on Path 15 in 4th Qtr 2000
• System monitors lines tension in real-time
• Path 15 demonstration indicating greater than 39
  MWs increased capacity
• Environmental benefit through delay/avoidance of
  new transmission corridors

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Proposed System for Demand Response in New Homes
Small Commercial Buildings
Cost of Avoided Load 100-200 per kW
Price/Proxy/Curtailment Signal1
Communicating Thermostat ?502
Load Data1
Interval Meter ?1001
1. Utility responsible for signal,
communications, meter, and load data. 2. Builder
responsible for communicating thermostat.
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Technical Support for DG Interconnection
Standards

• Reduces average cost of interconnection fees to
  consumers by 37
• Supports Rule 21 by resolving technical safety
  issues
• Establishes technology size neutral review
  process
• Identified testing and certification requirements
• Enables insertion of new generation (e.g.
  renewables) into the grid

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Role of Government

• Purchasing public/private partnerships in
  addressing public good
• RD through the valley of death
• Make use of bully pulpit and policy tools
• Take advantage of beneficial externalities
• Sensibly address competing interests
• Aggressive standard setting
• Uniform approach for interoperability
• Expand on Energy Star and NEMA Labels
• Lead for public education information
  dissemination

Sustained Leadership is a Must
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KIT CARSON MIDDLE SCHOOL SACRAMENTO, CA
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Plan for Working with UC Centers

• Initial Focus on Smart Buildings
• High-density sensor networks will allow existing
  environmental control technologies to operate in
  more sophisticated and energy-efficient ways, and
  the redundancy of sensors will improve the
  reliability of control by detecting faulty
  signals.
• High-density sensor networks will also allow new
  energy-efficient environmental control
  technologies to become feasible for the first
  time.
• Future work with remote monitoring/control via
  internet
• Inherent linkages between generation, TD, end-use

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Breakout of Hetch Hetchy Projects
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State Funded RD Programs Result in
Collaboratively-Funded Programs with U.S.
Department of Energy
Current Collaborative Programs
Renewables
Systems Environment
Small-scale Fossil
Efficiency
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Specific Related Program Areas with
Collaborative Activities

• Distributed utilities integrated testing
• DOE Program planning and facility evaluation
• CEC Phase 1 of test program
• Hetch Hetchy Also a co-funder
• Consortium for reliability and Transmission
  System (CERTS)
• DOE 9.3M, CEC 7.2M

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A Portfolio to Manage an Integrated System in
Transition

• DG vision can be one of a Hydrogen Future
• Integration of transportation and generation
  systems with continuous incremental improvements
• Insertion of renewables into grid requires
  changes from central station strategies
• Continuous improvement critical for end-use
  technologies
• Enabling technologies critical for efficient use
  of DG and in addressing demand response and DSM