Opportunities and Challenges for Solar Energy

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Opportunities and Challengesfor Solar
Energy Tucker Ruberti May 8, 2009
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Agenda

• Introduction to solar PV technology
• Market Overview
• Policy Issues
• Smart Grid
• Challenges going forward

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The Photovoltaic Effect

• The transformation of sunlight into electricity
  is explained by the photovoltaic effect
• Sunlight in the form of light particles called
  photons enters a solar cell
• Photons knock electrons loose from silicon atoms
• The freed electrons flow out of the cell as
  electric current
• The electric current is proportional to the
  intensity of the sunlight

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Photovoltaic Value Chain

• Silicon Ingot Wafer
  Cell Module System

Silicon A semi-metallic chemical element - the
semiconductor material for PV cells. Ingot A
mass of silicon cast into a shape which is easy
to handle. Wafer A thin slice of silicon cut
from an ingot. Cell A wafer with conductors
applied that converts sunlight into electricity
through the photovoltaic effect.
Module A finished PV product consisting of a
group of cells electrically connected
and laminated. Array A group of PV modules
installed and wired together. System One or
more arrays connected together to generate
electricity.
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Different Commercial PV Materials
Amorphous Silicon 6-8 efficient
Cadmium Telluride 8-10 efficient
Crystalline Silicon 16-20 efficient
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Securing PV Modules for 20 Years

1. Roof Mount- saves space, but is difficult and
   time consuming
2. Ground Mount- used for large field of PV
3. Tracker/Pole Mount- increases energy production
   up to 30, but adds cost

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Inverter

• An inverter converts DC energy from PV modules to
  grid synchronous AC power
• Inverters are selected based primarily on their
  conversion efficiency- typically 90-97
• Inverters are made of copper, steel and
  electronics/circuit boards

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A Grid-Tied PV System
1. PV Modules Collect the suns energy and
converts it into DC electricity 2. Inverter
Converts DC electricity into AC electricity and
synchronizes to utility power 3. Utility
Service Enables the PV system to trade energy
with the grid
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Types of PV Systems

• Off-Grid
• Drove early market
• Cost fells, new markets opened
• Grid Connected
• Residential 1-10kW
• Commercial 30-2,000kW
• Utility 2MW-40MW

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Yes- Solar is Big Business
By todays standards this 40MW system is very
large. In the future this will be small.

• Basics
• 550,000 First Solar
• Thin Film Modules
• 40MW of solar modules
• 40 million kWh/Yr
• About 290 acres
• Started in 2007
• Finish in 2009
• The system will run about 4,000 houses

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Worldview of the PV Industry
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Why is the US so far behind?

• Germany and others DO NOT have more sun!
• The European markets are driven by stable feed-in
  tariffs (FIT) that offer an attractive return on
  investment
• The U.S. can be thought of as 50 countries, with
  each state having their own objectives,
  incentives and rules about solar electricity (or
  worse, 2,000 utilities)
• The U.S. has no consistent Federal policy, yet
  
• but momentum for action is building because of
  the need for job growth and clean energy.

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Patchwork of State Programs
CA, NJ, CO, OR, WA, MD, FL, CT, AZ and a few
others are usinga mix of tactics to start or
accelerate statewide programs
DSIRE www.dsireusa.org

September 2007
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PV is Nearing Grid Parity in Terms of Cost
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Cost Reductions As A Catalyst
Data source Solar America Initiative Posture
Planhttp//www1.eere.energy.gov/solar/solar_ameri
ca/publications.html
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The Cost of Electricity 2007
Data source Utility Solar Assessment (USA)
Study, Clean Edge and CoOp America, June 2008
http//www.cleanedge.com/reports/reports-solarUSA2
008.php
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The Cost of Electricity 2015
Data source Utility Solar Assessment (USA)
Study, Clean Edge and CoOp America, June 2008
http//www.cleanedge.com/reports/reports-solarUSA2
008.php
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The Cost of Electricity 2025
Data source Utility Solar Assessment (USA)
Study, Clean Edge and CoOp America, June 2008
http//www.cleanedge.com/reports/reports-solarUSA2
008.php
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Why do we need a Smart Grid?

• If Alexander Graham Bell were somehow transported
  to the 21st century, he would not begin to
  recognize the components of modern telephony
  cell phones, texting, cell towers, PDAs, etc.
• In contrast, Thomas Edison, one of the grids key
  early architects, would be totally familiar with
  our current grid.
• If the grid were just 5 more efficient, the
  energy savings would equate to permanently
  eliminating the fuel and greenhouse gas emissions
  from 53 million cars.

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Current State of the Grid

• Todays grid was built to be a ONE WAY system
• 9,200 electric generating units
• more than 1,000,000 MW of generating capacity
• 300,000 miles of transmission lines
• The average US generating station was built in
  the 60s using even older technology
• The average age of a substation transformer is
  42, two years more than their expected life span

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What is a Smart Grid?

• A distributed set of generation resources that
  are smaller, smarter, and more flexible
• Small gas plants, On Site CHP, solar, geothermal,
  wind, landfill gas, etc
• Consumer and commercial loads that are part of
  the electric internet
• Wired to respond to utility price signals
• Balancing supply with demand, and doing more with
  less
• Reduce or eliminate spinning reserves

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An Example of a Distributed Grid
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The Challenges for the Legal Profession

• Siting PV systems has not been a big issue
  historically, but as utility scale projects are
  being proposed there are issues around
• land use for the solar system (ESA, NEPA, etc)
• right of way for the utility transmission (BLM
  land, private land)
• Utility interconnection issues (PURPA, etc)
• Financing structure called PPA has evolved over
  the past several years, requires establishment of
  an LLC to consume state and federal tax credits
  and other benefits such as accelerated
  depreciation

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A Final Thought

• Id put my money on the sun and solar energy.
  What a source of power! I hope we dont have to
  wait until oil and coal run out before we tackle
  that.
• Thomas Edison