ACC EPS Workshop April 5, 2004

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ACC EPS WorkshopApril 5, 2004

• Solar Dish Engine Systems
• Presented By Robert B. Liden
• Chief Financial and Administrative Officer
• Stirling Energy Systems, Inc.

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Southwest Solar Resource
Solar energy resources in the Southwest U.S. are
among the finest in the world
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And Arizonas Solar Resource Is Tremendous
Available land area is the area in the selected
solar resource region reduced by land that is
unsuitable for any reason and 3, 2, and 1 of
the three resource levels.
Source RDI Consulting, Fuel from the Sky, Solar
Powers Potential for Western Energy Supply,
July 2002
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Solar Is Arizonas Primary Renewable Resource
Solar 1,525 Million MWh/yr
Potential Wind 5 Million MWh/yr
Potential Biomass 1 Million MWh/yr
Potential Geothermal 5 Million MWh/yr
Potential
Sources Energy Atlas . org
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Solar Dish Stirling Systems
10 kW
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Solar Dish Stirling Operation

• Dish Concentrator Focuses Suns Energy On
  Receiver
• Stirling Engine Converts Thermal Energy To
  Electrical Energy

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SES Solar Stirling System

• Worlds Most Efficient Solar Electric
  Technology
• Recently Completed Highly Successful
  Concentrating Solar Program With US DOE
• Similar To An Automobile From A Manufacturing
  Perspective

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Proven Technology

• Over 25,000 Hours Of On-Sun Operating Time
• Over 125,000 Hours Of Chemical Fuel Operation
• 24.9 kW Peak Power
• 29.4 Peak Efficiency
• 95 Availability

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Current Planned Installations

• Demonstration dishes in Las Vegas, NV (UNLV)
  and Johannesburg, South Africa
• Four dishes at Sandia National Labs in
  Albuquerque, NM
• Six more dishes to be installed at Sandia by
  year-end
• Ten dishes to be installed at APS in 2005
• Fifty dishes scheduled for So. NV as DOE
  demonstration dish plant

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Dish MarketsBOTH Distributed Central Grid Tie
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Dish Field Facts

• Land Required 8 9 dishes per acre
• Operating Maintenance Costs
• Depends on size of installation
• Approx. 3-5 c/kWh for small installations (1-5
  MW)
• Approx. 1 c/kWh for large solar farms (100 MW)
• Water Usage Almost none (14 gal./dish to wash
  mirrors)
• Emissions None

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New Jobs Potential

• Estimated 7,000 construction/manufacturing
  jobs for 100 MW per year installation of
  CSP-type systems
• About 2,000 on-going operating support jobs

Source DOE-sponsored study performed by UNLV
for the CSP industry
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Dish ( Other CSP) Costs Will Decline
Cost reductions realized by wind power are good
examples for CSP

• Initial cost of wind power was high but
  decreased as installed capacity increased.
• The same trend will occur for CSP
  technologies.

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Projected Costs of CSP Generation
16 12 8 4 0

• Sargent Lundy and SunLab each evaluated
  the potential cost reductions of CSP
• Cost reductions for trough technology will
  result from deployment, scale and RD
• Cost reductions are accelerated with faster
  deployment schedule
• Dish cost curve is steeper than trough

/kWh
SL
SunLab

1000 2000 3000
4000 Megawatts
ASSESSMENT OF PARABOLIC TROUGH AND POWER TOWER
SOLAR TECHNOLOGY COST AND PERFORMANCE FORECASTS,
SL-5641 MAY 2003.
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Solar Dish Manufacturing/Producibility
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Solar Dish Future in AZ
Post-1000 MW Situation and Opportunities

• Solar electricity costs decline to low single
  digit c/kWh.
• AZ solar leadership is solidified and US
  companies are positioned to capture international
  projects.

AZ has access to a clean, in-state energy source
at competitive prices. AZ businesses gain major
market share.
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A Recommendation

• To make the great benefits listed on the last
  slide happen (and to make a real, very positive
  impact on Arizonas and the Southwest US
  environment -- which is the goal (or should be)
  of an Environmental Portfolio Standard) -- I
  recommend that the Commission
• Increase the EPS to 10 (and grow it to 15 or
  20 over the next 10 years)
• Increase the residential ratepayer environmental
  surcharge to 0.75 per month
• Keep the 60 solar mandate (it IS AZs most
  dominant resource, after all)!