Category: Skinny grids

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)

Grids, Smart Grids and More Grids: What’s Coming

In an earlier blog post on energy storage I stated that there are two developments related to the widespread use of renewable energy that ‘I would fall on my sword for’, energy storage and smart grids. This post discusses the second of these in the context of large-scale smart grids and smaller minigrids. Both are critical to the future of renewable energy in both developed and developing countries.

Grids are collections of wires,switches,transformers,substations, and related equipment that enables the delivery of electrical energy from a generator to a consumer of that energy. A traditional grid structure today is shown below:

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The first grid, for delivery of alternating current (AC) electricity, was put into operation in 1886. Electrical energy can be delivered as either AC or DC (direct current) electricity, but for over a century AC has been the preferred delivery mechanism. A more complete discussion of AC vs. DC is a good topic for a future blog post.

The traditional grid is a one-way distribution network that delivers power from large centralized generating stations to customers via a radial network of wires. Regional grids, when integrated, constitute a national grid, something the historically balkanized U.S. electric utility system is still trying to achieve. Transmission lines are long distance carriers of electrical energy transmitted at high voltages and low currents to minimize electrical losses due to heating in wires. This high voltage energy is then reduced via transformers to lower voltage, usually 120 or 240 volts, to supply local distribution networks that bring the energy to our homes and businesses. The U.S. Energy Information Administration estimates that national electricity transmission and distribution (T&D) losses average about 6% of the electricity that is transmitted and distributed in the United States each year.

While the traditional grid has brought the benefits of electricity to billions of people for many decades, its shortcomings have become more visible in recent years. The problem is its vulnerability to disruption by extreme weather events (only a small fraction of T&D wires are underground), physical attack and accidents leading to widespread power outages, cyber attack in today’s world of increasing dependence on information technologies, and even large solar storms that strike the earth occasionally and interact with the T&D system acting as giant antennas.

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The utility industry has usually (but not always) resisted putting wires underground because of high costs, and increased effort is going into trimming trees that can fall on or otherwise disrupt power lines. Control of the grid has also been improved to minimize the possibility of disruption in one grid sector spreading to others, but this is a costly work in progress. What is looming as a major threat to the traditional grid is its increasing dependence on automated remote control via advanced computer/information technologies built into the grid system that are vulnerable to hacking and other malevolent interventions.

Grid systems with computer controls are referred to as smart grids. Through the gathering, communication, analysis, and application of analog or digital information on the behavior of suppliers and consumers, a smart grid can use automation “..to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity.” The issue of cyber vulnerability has only begun to receive careful attention in recent years as the hacking phenomenon has surged and the ability to interrupt remote industrial activities via computer viruses such as Stuxnet have been demonstrated.

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What can be done to protect against this vulnerability? Considerable effort is going into developing software that is resistant to hacking, but this is proving extremely difficult to achieve. As has become all too obvious, there are lots of talented hackers out there and some of them are supported by national governments. Nevertheless, this is a path that has to be pursued, and is becoming a priority in the training of new IT programmers and specialists.

Another approach is to move away from the historic centralized grid and move to a grid system where disturbances can be isolated (islanded) once detected and thus unable to affect other parts of the grid. This will require distributed generation sources that supply unaffected parts of the grid, and could be other centralized generators that can be tapped or local renewable energy sources (wind, solar) that are not in the disturbed grid sector.

Traditional grids are expensive, and extending these grids from urban to remote areas often can not be justified economically. This is particularly true in developing countries where most of the world’s 1.5 billion people without access to electricity reside. Improving access to modern energy services in rural areas is a major development priority, and there is increasing attention to decentralized generation and distribution through mini-grids. “A ‘mini-grid’ is an isolated, low-voltage distribution grid, providing electricity to a community – typically a village or very small town. It is normally supplied by one source of electricity, e.g. diesel generators, a solar PV installation, a micro-hydro station, etc., or a combination of the above.” It includes control capability, which means it can disconnect from a traditional grid and operate autonomously.

A recent workshop organized by the Africa-EU Renewable Energy Cooperation Programme (RECP), held in Tanzania in September 2013, focused on this rapidly emerging option – ‘Mini-Grids: Opportunities for Rural development in Africa’. The workshop background was described as follows: “Given Africa’s abundance of renewable energy resources, the widespread existence of isolated, expensive, highly-subsidized fossil-fuel based mini-grids on the continent, very low grid connection rates, the often low levels of electricity demand from households, the high costs associated with grid extension, the lack of reliable, centralized generation capacity and increasing levels of densification as a result of ongoing urbanization, renewable energy and hybrid-based mini-grids provide a practical, efficient energy access solution.” It should also be noted that the use of renewables can reduce fossil-fuel use, reduce carbon emissions, and create local jobs and economic development.

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Another type of mini-grid is the micro-grid, a term used to describe mini-grids that deliver DC electricity to its consumers. Still another variation is the skinny-grid, which emphasizes the use of energy efficiency technologies to reduce consumer demand and thus allow the use of thinner and less expensive connecting wires between generators and end users.

I will conclude this blog post by discussing the role of smart grids in facilitating the integration of renewable energy into the grid. Renewable energy is now growing rapidly as a share of the global energy mix and this trend will continue as we move further into the 21st century. We are also learning that, despite the variable nature of solar and wind energy, by using the control features of increasingly sophisticated smart grids and the use of energy storage, this integration can be done safely and cost effectively with high levels of renewables penetration.

IRENA, the International Renewable Energy Agency headquartered in Abu Dhabi, has addressed this issue in a comprehensive November 2013 report entitled ‘Smart Grids and Renewables’. As stated in the Executive Summary: “This report is intended as a pragmatic user’s guide on how to make optimal use of smart grid technologies for the integration of renewables into the grid. …The report also provides a detailed review of smart grid technologies for renewables, including their costs, technical status, applicability and market maturity for various uses.” It acknowledges that “Much of what is known or discussed about smart grids and renewables in the literature is still at the conceptual/visionary stage..” but includes “..several case studies that involve actual, real-world installation and use of smart-grid technologies that enable renewables.” The report also points to needed policy and regulatory changes for successful renewables integration. It is a valuable and forward-looking document.