AEE ANNUAL EXPO 2005 Buena Park, February 16, 2005

1
AEE ANNUAL EXPO 2005Buena Park, February 16,
2005
Renewable Technologies Update A Progress Report

• Debenham Energy LLC
• Scott_at_Debenhamenergy.com
• 619-334-9541

2
AGENDA

• Wind Energy
• Wind Technology, Market and Regulatory Trends
• California Opportunities for Distributed
  Generation (DG)
• Local Success Story Victorville Federal Prison
• Innovative New Products

3
GE WIND 1.5 MW
4
Wind Turbines Continue to GrowLargerTallerMore
Productive
5
Plan Now for Coming yet Larger WTGs
6
A Typical Large Turbine has Multiple Subsystems
and Controls
7
World Wide Market Share
8
Cost of Energy Trend
1979 40 cents/kWh
2000 4 - 6 cents/kWh

• Increased Turbine Size
• RD Advances
• Manufacturing Improvements

NSP 107 MW Lake Benton wind farm 4 cents/kWh
(unsubsidized)
2004 3 - 5 cents/kWh
9
Motivation for Low Wind Speed Technology RD

• Current Situation
• Wind viable at higherwind speed sites(Class 6
  avg. 15 mph _at_ 10m)
• Limited high wind sites
• Subsidies important
• New Focus Needed
• Shift to future industry needs
• Broaden range of competitive opportunities
• Eliminate the need for subsidies

10
Acquiring Wind Least-Cost Size Matters
Assuming the same wind speed of 8.08 M/S, a large
wind farm is more economical
Source AWEA
11
Fossil Energy Resources Projected to Peak Soon
12
World Wide Growth
13
Tehachapi Area Wind ResourceCalifornias Largest
Plausible Wind Energy Resource345 MW Connected
to 66 KV SCE Grid380 MW Connected to 230 KV
Private Transmission4,000 MW Plausible New
Resource Stranded by Lack of TransmissionExpectat
ion is SCE will now Build Major New Transmission
14
California Opportunities for Distributed
Generation (DG) Wind
15
California DG Wind

• Pros
• Self Generation Incentive Program (SGIP)
• 1,000 or 1,500 per kW?
• Size increased to 5 MW? (1 MW eligible)
• Moved from Level 1 to Level 3-R?
• Funded 125m in 2005. Program through 2014
• Net Metering Law (1 MW)
• High Electric Rates
• Progressive State
• Cons
• Limited Number of Large Loads in Windy Locations
• Regulatory Environment (No Green Tag Sales!)
• SGIP Funding for Wind affected by PV Funding

16
Why does Wind Power make sense for Distributed
Generation applications?

• Technology improvements have dramatically lowered
  costs and increased reliability
• US State and Federal incentive programs are
  making wind projects economically attractive
• Much more economical than other renewable
  technologies in most places
• Increasingly positive public perception is making
  siting and permitting easier

17
Implementing Wind Power for Distributed Generation

• Suitable Sites
• Good Wind Resource
• High Utility Power Cost
• State Incentive Program
• Permitable (allowed with zoning variance)
• Connectable (Utility Interconnection Agreement)
• Mid-Size Wind Turbine Availability
• Mid-Sized wind turbine production in decline
• Manufacturers are too busy with large projects

18
Mid-Sized Wind Turbines for Distributed
Generation Applications

• Located at facility after the meter where
  retail power can be displaced
• Reduces facility monthly utility energy bill
• Sells excess power back to utility during
  off-shift and/or during windy periods.
• May provide additional benefits Visual evidence
  that the facility generates and uses green power

19
Simplifying Wind Resource Assessments
20
Wind Resource Assessments Tools Becoming More
Sophisticated( Watts/M2 TOU )
21
City Zoning / Permitting
22
States with Favorable Incentives for DG Wind
Turbines in the United States
23
In Summary

• Mid-Sized wind turbines can be economical in
  distributed generation applications given the
  right combination of factors
• Windy Location
• State and / or Federal Economic Incentives
• High Power Cost
• Good Load Match with the Host Site (Net Meter)
• Other benefits may be available as well
• Green Image
• Green Tags (RECs/TRCs)

24
Federal Correctional InstituteVictorville,
California

• A Hybrid Renewable Energy Efficiency Success Story

25
Victorville Federal Prison
26
Overview of Project Economics
27
(No Transcript)
28
Challenges and Solutions

• Challenge
• Accurately Assessing the Wind Resource.
• Solution
• Assessment Confirmed Independently by a Private
  Meteorologist and NREL. Installed 2 METs to
  Determine Optimal Location.
• Challenge
• Risk Responsibility Wind Resource, Turbine
  Performance/Availability
• Solution
• Agreed on TMY for Wind Energy.
• Used Independently Verified Performance Data Less
  Expected Degradation.
• Availability Independently Estimated. Response
  Times Written Into Maintenance Subcontract.

29
Challenges and Solutions

• Challenge
• Operational Costs for a Single Turbine
• Solution
• Scope of Operations Responsibilities Shared
  Between Developer and Owner
• Challenge
• Funding Long Term OM
• Solution
• Sinking Fund in Place for Expected Maintenance
  and Repair Costs in Order to Assure that
  Availability is as Predicted.
• Challenge
• Tax and Environmental Benefits are Substantial
  but Hard to Incorporate
• Solution
• Production Tax Credits, Accelerated Depreciation
  and RECs (Green Tags) were not Included.

30
Wind Turbine OM
Vachon, W.A., Long-Term Costs of Wind Turbines
Based on Failure Rates and Repair Costs
Page 5 of 6
31
Annual OM Cost
Vachon, W.A., Long-Term Costs of Wind Turbines
Based on Failure Rates and Repair Costs
32
Probable Repair Fund Components

• Tip Hydraulics Pump
• Brake Hydraulics Pump
• Generator Bearings
• Blade Repair
• Oil Pump Cooling System
• Yaw System
• Control Panel Components

• Capacitors
• Power Poles Cross Arm Repairs
• Computer/Communications
• BOP Electrical Maintenance
• Miscellaneous Repair Parts
• Nuisance Failures

33
Victorville Accomplishments

• First Utility Scale Wind Turbine under Net
  Metering
• First Wind-Solar Hybrid Project under California
  Incentive Program.
• First Utility-Scale Wind Turbine in High Desert
  Region.
• First ESPC Wind Turbine Project
• Proved that Marginal Wind Regimes can be Financed
  with Alternative Financing.

34
Maintaining Turbine Performance Artificial Rain
35
Interesting Wind Products
36
Gossamer Albatross Designed by Paul MacCready
37
2.4 kW System
38
Architectural Wind a Wind Energy Solution for
Urban Environments
39

• Wind Harvest
• Vertical Axis Wind Turbines
• George Wagner [phone]

40
(No Transcript)
41
(No Transcript)
42
Sky WindPower Dave Shepard - 619 265-3434
43
(No Transcript)
44
SELSAM InnovationsMulti Rotor Wind
TurbineDoug_at_Selsam.com 714-992-5594
45
(No Transcript)
46
(No Transcript)
47
(No Transcript)
48
(No Transcript)
49
QUESTIONS?

• Special Thanks to
• Henry du Pont / Lorax Energy Systems
• Hal Romanowitz / Oak Creek Energy Systems
• NREL
• Debenham Energy LLC
• Scott_at_Debenhamenergy.com
• 619-334-9541