About to be Published: A Comprehensive Handbook on Solar Energy

‘Sun Towards High Noon: Solar Power Transforming Our Energy Future’ will be published in paperback by Pan Stanford Publishing on March 22nd. It will be listed at $34.95 but a 30% discount is available along with free shipping when ordered online at www.crcpress.com (Promo Code STA01). The latest volume in the Pan Stanford Series on Renewable Energy, it was edited by Dr. Peter F. Varadi, a solar energy pioneer and author of an earlier volume in the series ‘Sun Above the Horizon: Meteoric Rise of the Solar Industry’ (see below). Peter is also a contributing author in this new volume, along with Wolfgang Palz, Michael Eckhart, Paula Mints, Bill Rever, John Wolgromuth, Frank Wouters, and Allan Hoffman.

The broad scope and comprehensiveness of the book can be seen in its detailed Table of Contents reproduced below:

1. Meteoric Rise of PV Continues 1
1.1 Sun above the Horizon 2
1.2 Sun towards High Noon 6
2. New PV Markets Sustaining Mass Production 9
2.1 Utilization of the Terrestrial Solar Electricity 10
2.2 Solar Roofs for Residential Homes 13
2.3 Grids, Mini-Grids, and Community Solar 24
2.4 Commercial PV Systems 32
2.5 Utility-Scale Solar 43
2.5.1 Current Status 47
2.5.1.1 Concentrating solar power systems 47
2.5.1.2 Concentrating photovoltaic systems 50
2.5.1.3 Flat-plate photovoltaic systems:
fixed and tracking 51
2.5.2 Future Prospects 54
2.6 Important Large Market: Solar Energy and
Clean Water 56
2.6.1 Desalination and Disinfection: Introduction 56
2.6.2 Desalination 56
2.6.3 Disinfection 62
2.6.4 Conclusion 63
2.7 Quality and Reliability of PV Systems 64
2.7.1 Module Qualification Testing 65
2.7.2 Module Safety Certification 67
2.7.3 Module Warranties 68
2.7.4 Failure Rates in PV Systems 70
2.7.5 Module Durability Data 71
2.7.6 ISO 9000 72
2.7.7 IECQ and IECEE 72
2.7.8 To Further Improve Long-Term Performance 73
2.7.9 International PV Quality Assurance Task Force 75
2.8 Storage of Electrical Energy 83
2.8.1 Introduction 83
2.8.2 Why Is Electrical Energy Storage Important? 83
2.8.3 What Are the Various Forms of Electric Storage? 85
2.8.4 Applications of Energy Storage and Their Value 92
2.8.5 Capital Costs of Energy Storage 93
2.8.6 Concluding Remarks 94
2.9 Solar Energy and Jobs 95
2.9.1 Introduction 95
2.9.2 What Are the Facts? 95
2.9.3 Concluding Remarks 100
3. Financing 101
3.1 Financing of PV 102
3.2 Subsidies and Solar Energy 104
3.2.1 Introduction 104
3.2.2 What Forms Do Energy Subsidies Take? 104
3.2.3 What Is the History of US Energy Subsidies? 105
3.2.4 What Has All This Meant for Solar PV? 108
3.2.5 Concluding Remarks 110
3.3 Wall Street and Financing 111
3.3.1 Policy Drivers for Solar Energy Financing 111
3.3.1.1 The importance of policy to financing 113
3.3.2 Federal Policies 114
3.3.2.1 Federal RD&D 114
3.3.2.2 Public Utility Regulatory Policies Act 117
3.3.2.3 Investment tax credits 118
3.3.2.4 Commercialization and deployment 120
3.3.2.5 Government purchasing 122
3.3.3 State and Local Policies 123
3.3.3.1 Renewable Portfolio Standards and RECs 123
3.3.3.2 Solar Set-Asides and SRECS 123
3.3.3.3 Net energy metering 124
3.3.3.4 Leading state examples 124
3.3.4 International Policy for Solar Energy Financing125
3.3.4.1 Policies of individual governments 126
3.3.4.2 International agencies 129
3.3.4.3 Multi-lateral development banks 131
3.3.4.4 Impact of NGOs on government policy 132
3.4 Solar Market Segmentation and Financing Methods 136
3.4.1 Utility-Scale Solar Project Financing 136
3.4.2 Commercial & Institutional Rooftop Financing 136
3.4.3 Community Solar 137
3.4.4 Residential Rooftop Financing 137
3.4.4.1 PPA model 138
3.4.4.2 Inverted lease 138
3.4.4.3 Loan-to-ownership 139
3.5 Solar Project Financing 140
3.5.1 Traditional Power Generation Financing 140
3.5.2 PURPA and the Development of Non-Recourse
Financing 140
3.5.3 Conditions Required for Project Financing 142
3.5.4 Overall Capital Structure: Equity, Tax
Equity, and Debt 143
3.5.5 Tax Equity Using the Investment Tax Credit 144
3.5.6 Bank Loans 145
3.5.7 Institutional Capital 146
3.5.8 Project Bonds 147
3.6 Capital Market Investment in Solar Securities 148
3.6.1 Equity Market Investment in Solar Companies 148
3.6.2 Yieldcos and Other Portfolio Companies and
Funds 150
3.6.3 Green Bonds 153
3.6.4 Securitization 155
3.7 Summary 157
3.8 Glossary 158
4. Present and Future PV Markets 161
4.1 The Global View of PV 162
4.2 The Present and Future of Neglected PV Markets:
Africa and the Middle East 164
4.2.1 Introduction 164
4.2.2 Africa 166
4.2.3 Middle East and North Africa 183
4.3 The Present and Future Market in the Americas 192
4.3.1 The United States of America 194
4.3.2 Canada 204
4.3.3 Countries in Latin America 205
4.4 The Present and Future Market in Europe 208
4.5 The Present and Future Markets in Asia 220
4.6 The Present and Future Markets in Australia
and in Oceania 231
4.7 Global Community Unites to Advance Renewable
Energy: IRENA 236
4.7.1 Start of IRENA 238
4.7.2 Hermann Scheer
4.7.3 IRENA’s Roots and Early Days 241
4.7.4 Institutional Setup 246
4.7.5 Hub, Voice, Resource 247
4.7.6 IRENA’s work 248
4.7.7 The Way Forward 252
4.7.8 Glossary 254
5. The Impact of Solar Electricity 255
5.1 The Impact of Solar Electricity 256
5.2 In the Twilight of Big Oil, in Retrospect, PV Was
a Missed Boat 259
5.3 PV and the Brave New World of the Electric Utilities 267
6. Outlook to the Future 281
About the Contributors 291
Index 295

The value of this new book is captured in the two back cover comments:

“This comprehensive and timely book provides the reader with a very thorough technical, regulatory, and financial overview of the global solar (PV) industry. Featuring internationally eminent contributors from the who’s who of solar industry experts, this book offers insights, analysis, and background on all the key issues facing this rapidly growing industry. It will be an invaluable reference and resource for scholars, investors, and policymakers dealing with the emerging solar power phenomenon.” (Branko Terzic, Atlantic Council, Former Commissioner/U.S. Federal Energy Regulatory Commission)

“The long-term welfare of people on our planet depends on an energy system heavily dependent on solar energy. This solar energy handbook presents a well-documented, comprehensive, and insightful view of solar energy’s past, present, and future. Its preeminent contributing authors include solar energy pioneers, visionaries, and practitioners who bring a wealth of experience and insights into solar energy markets, financing, policy, and technology.” (Karl R. Rabago, Executive Director/Pace Energy and Climate Center, Elisabeth Haub School of Law, Pace University)

Returning to an Important Subject: the Vulnerability of the U.S. Electrical Grid

I’ve just had an amazing experience – I listened for about an hour to an online advertisement for an investment newsletter. You may reasonably ask why would any compos mentis individual devote an hour of their life to an advertisement for a service that he was unlikely to sign up for? My answer is simple – the ad addresses an important issue that I have touched upon in earlier blog posts, and in accurate terms once you sift the wheat from the chaff of a much too long presentation. It also presents a worst case scenario to get your attention, a common advertising technique, but it also presents information on what I consider a significant national security risk – the vulnerability of our national electrical grid system to natural or malevolent events. The ad, in its infuriating stretched-out discussion, addresses this vulnerability from four sources – sabotage, solar flares, cyber attacks, and military attacks. The ad’s discussion includes references to federal government and NARUC (National Aassociation of Regulatory Utility Commissioners) reports that address Black Sky Day possibilities and which are easily accessed. Black Sky Days are defined as “extraordinary and hazardous catastrophes utterly unlike the blue sky days during which utilities usually operate.”

My concern about the grid vulnerability issue goes back about thirty years and has only grown with time. I truly believe we are a highly vulnerable society and are not yet paying enough attention to our vulnerabilities. I hope I am wrong.

In any event, I present the link to the ad below (I wish it had an Executive Summary) and to my two previous blog posts that discuss the vulnerability issue. We need more attention to these perhaps unlikely events but ones with potentially massive consequences.

1. The Black Sky Days Event Is “Imminent” – The Oxford Club
http://pro.oxfordclub.com/DDSKY3959PESDBNETTTSOXFJVIUPS4/PORER800/?h=true

2. The Vulnerability of Our Electric Utility System to Cyber Attacks

The Vulnerability of Our Electric Utility System to Cyber Attacks

3. Vulnerabilities of U.S. Infrastructure: We Need To Pay More Attention

Vulnerabilities of U.S. Infrastructure: We Need To Pay More Attention

Energy Storage: A Critical Link In the Renewable Energy Chain

An issue that has always grabbed my attention is the critical role I and others foresee for energy storage in the eventual widespread use of variable (intermittent) renewable energy sources such as wind and solar. In fact it was the focus of my first decision when I assumed responsibility for DOE’s renewable electricity programs in 1994. That decision was to establish a comprehensive storage program to complement the established generation programs – up until that point the only storage program was a small effort on underground hot water storage at a university in South Carolina (no doubt related to the fact that the Chairman of the relevant budget authorization subcommittee was from South Carolina). The new program, in addition to thermal storage, added battery storage and superconducting magnetic energy storage (SMES) – superconductivity was another of the programs I managed.

Energy storage is one of two critical renewable energy issues that I have always said I would ‘fall on my sword for’. The second is the need for a national smart grid that will allow renewable electricity generated in one part of the country to be shared with other parts. I have touched briefly on the energy storage topic in earlier blog posts; this post takes a much more detailed look at various storage options.

The need for storage to steady the output from a variable energy source is not new. In fact, in December 1861 the following words and illustration appeared in an agrarian newsletter:
A Mighty Wind One of the great forces nature furnished to man without any expense, and in limitless abundance, is the power of the wind. Many efforts have been made to obtain a steady power from the wind by storing the surplus from when the wind is strong. One of the latest and simplest of these is illustrated in the accompanying engraving. A windwheel is employed to raise a quantity of iron balls, and then these balls are allowed to fall one by one into buckets upon one side of a wheel, causing the wheel to rotate, and thus to drive the machine.”

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If one substitutes water for the iron balls and attaches a generator to the rotating machine you have today’s system of pumped water storage and generation. A modern version of the 1861 system, using gravel instead of iron balls, is shown in the following sketch:

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Since the discovery of electricity generation using rotating coils of wire in magnetic fields by the British scientist Michael Faraday in 1820, people have sought ways to store that energy for use on demand. Without such storage, or use in some other way (e.g., to electrolyze water to create and store hydrogen, heat water, bricks or phase change materials that store heat , or refrigerate water to create ice) surplus electricity generation is lost. With modern societies increasingly dependent on energy services provided via use of electricity, the need for electricity storage technologies has become critical. This is especially true as more and more variable renewable energy enters the grid, to avoid grid destabilization. This can occur because electric power supply systems must balance supply and demand, and because demand is highly variable and hard to control the balancing is routinely achieved by controlling the output of power plant generators. If these generators are variable solar and wind, and their grid contribution becomes significant, achieving the balance is that much more difficult, and a means of stabilizing these variable outputs is needed.

There is also strong economic and social incentive for storing electricity in a localized, distributed manner. Today’s 100-year-old centralized utility business model, in which large central power plants deliver electricity to customers via transmission and distribution lines, includes the imposition of peak demand charges that can account for a significant fraction of a business’ or an individuals’ electricity bill. With the use of localized generation (e.g., PV panels on your roof), combined with storage at your site, these demand and peak charges can be reduced if not eliminated, and independence from the utility, to some degree, can be achieved. This reality is taking place in Germany (and coming to the U.S.) and threatening the utility business model in Germany to the extent that German utilities have gone into the solar-energy storage business. They now sell or lease or maintain roof-mounted PV and battery storage systems.

Today’s menu of devices that allow storage of surplus electricity for use at other times includes: solid state batteries and supercapacitors, flow batteries, flywheels, compressed air energy storage (CAES), and pumped hydropower. Hydrogen generated from any electricity source via electrolysis of water, and combusted or used in fuel cells, is, in many ways, the ultimate storage technology for surplus electricity. Flywheels, pumped storage, and fuel cells are discussed in earlier blog posts ; other storage technologies are discussed below.

Historically, electricity has been stored in lead-acid batteries, and this is still the dominant battery storage technology today in cars and elsewhere because of low cost, high power density, and high reliability. Disadvantages are low specific energy storage capacity, large size, high weight, and the need for an acid electrolyte. Lead is also a toxic material. Research to improve batteries has been underway for more than a century, and considerable progress has been made (e.g., improved lead-acid batteries that require no maintenance and recycling of used batteries to recover the lead), with considerable promise for further developments in the future.

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Most battery attention today is focused on lithium-ion batteries where cost and safety are prime concerns. Research into post lithium-ion batteries is also being actively pursued.
Lithium-ion batteries are widely used today because! “pound for pound they’re some of the most energetic rechargeable batteries available.” For example, it takes six kilograms of a lead-acid battery to store the same energy as one kilogram of a lithium-ion battery. Lithium-ion batteries (there is a variety of battery chemistries) also hold their charge well (losing about 5% per month), have no memory effect (therefore no need to fully discharge before recharging), can handle many hundreds of charge/discharge cycles, and have good ’round trip efficiency’. The story does have a negative side – lithium-ion batteries are sensitive to heat, can’t be fully discharged (thus requiring a computerized battery management system), are still costly (although costs are coming down), and certain chemical formulations can occasionally burst into flame if damaged or otherwise overstressed. One person making a big bet on lithium-ion batteries is Elon Musk, who has announced plans for a $5 billion battery factory, to provide lithium-ion batteries for his Tesla electric vehicles and other applications. Through such large scale production Musk hopes to reduce the cost of the batteries by 30 percent (to about $10,000 for a 60 kWh battery pack).

Supercapacitors store energy in electric fields and fill a gap between ordinary capacitors and rechargeable batteries. Their claim to fame is that they can be charged/discharged much more rapidly than batteries and can tolerate many more charge/discharge cycles. They are widely used as low current power sources for computer memories and in cars, buses, trains, cranes and elevators, including energy recovery from braking.

Redox (reduction/oxidation) flow batteries are large scale rechargeable energy storage systems that are on the verge of wide application in the electric utility sector. They are particularly well suited to storing large amounts of energy, e.g., the surplus energy created by hours of solar or wind power generation. The energy storage materials are liquids that are stored in separate tanks, and when energy is needed the liquids are pumped through a ‘stack’ where they interact to generate electricity. Many different chemical liquids have been tested for flow battery operation, with most current attention being focused on vanadium compounds which are expensive. Flow batteries also have relatively low round-trip efficiencies and response times. Because of the vanadium cost concern many other chemical possibilities are being evaluated.

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CAES (compressed air energy storage) utilizes surplus electricity to compress air to high pressures in large caverns, which can then be heated and released as needed to power expansion turbines that generate electricity. Such a CAES system has been operating successfully in Alabama since 1991, and gases other than air (e.g., carbon dioxide) can be used as well.

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SMES stores energy in the magnetic field of a circulating dc electrical current in a superconducting coil. The superconductor has no electrical resistance and the current continues indefinitely unless its energy is tapped by discharging the coil. A typical SMES device has two parts, a cryogenic cooler that cools the superconducting wire below its transition temperature at which it loses its electrical resistance, and power conditioning circuitry that allows for charging and discharging of the coil. Its advantages are ultra fast charge and discharge times, no moving parts, nearly unlimited cycling capability, and an energy recovery rate close to 100 percent. Disadvantages are cost of the wire, the need for continuous cooling, large area coils needed for appreciable energy storage, and the possibility of a sudden, large energy release if the wire’s superconducting state is lost. SMES devices are often used to provide grid stability in distribution systems and for power quality at manufacturing plants requiring ultra-clean power (e.g., microchip production lines). One MWh SMES units are now common and a twenty MWh engineering test model is being evaluated.

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To summarize, there are many energy storage options that work and tradeoffs are often required – e.g., among storage capacity, power capacity, round-trip efficiency, and most importantly cost. Lots of research is underway to reduce costs, given the large potential markets and the need to safely integrate variable renewable energy generation from solar and wind into the utility grid system. I have no doubt that cost-effective storage systems will soon be available, facilitating the needed rapid transition to a renewable electricity future.