opportunities in energy ray hammarlund director, energy programs division kansas corporation...

Opportunities in Energy

Ray Hammarlund

Director, Energy Programs Division

Kansas Corporation Commission

Top Ten Problems of Humanity for the Next 50 Years

• 1) Energy• 2) Water• 3) Food• 4) Environment• 5) Poverty• 6) Terrorism & War• 7) Disease• 8) Education• 9) Democracy• 10) Population

• Source: Professor R.E. Smalley – Rice University May 3, 2003

U.S. Energy System

Human Development Index vs. Energy Usage

World EnergyWorld EnergyGDP vs. Energy Consumption

OmanTurkmenistan

Estonia

Netherlands

Portugal

Czech

Saudi Arabia

Russia

Denmark

Japan

Trinidad & Tobago

Australia

Finland

Norway

Switzerland

SingaporeCanada

Iceland

Kuwait

United States

UAE

Sweden

BelgiumNew Zealand

Italy

China

Slovenia

S. KoreaUK

AustriaIsrael

Spain

Germany France

Chile

Greece

IrelandSlovakia

Uruguay

Argentina

Mozambique

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2,000

4,000

6,000

8,000

10,000

12,000

14,000

0 5,000 10,000 15,000 20,000 25,000 30,000

GDP per capita (million Int. $ at PPP)

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Energy Efficiency, Conservation

• “A clean world takes a lot of dirty work” Mike Rowe – Dirty Jobs – Discovery Channel

• There is plenty of work to be done in Kansas for 50 years on energy efficiency and conservation

ARRA funding from KCC

• Revolving loan fund for Residential and Light Commercial – Two options

• Payments on the utility bill• EE loan through participating banks

– Details• Average dollar amount of upgrade around $6000

with $1500 usually paid for upfront by homeowner• Requires an energy audit

Meridian Way Wind Farm201 MW - 2008

Spearville Wind Farm100 MW - 2006

Smoky Hills Wind Farm250 MW - 2008

Central Plains Wind Farm99 MW - 2009

Elk River Wind Farm150 MW - 2005Gray County Wind Farm

112 MW - 2001

Flat Ridge Wind Farm100 MW - 2009

Top Ten Wind Manufacturers (as of March 2008) Source: BTM Consulting

• 1) Vestas (Denmark) • 2) GE Energy (United States) • 3) Gamesa (Spain) • 4) Enercon (Germany) • 5) Suzlon (India) • 6) Siemens (Germany) • 7) Acciona (Spain) • 8) Goldwing (China - PRC) • 9) Nordex (Germany) • 10)Sinovel (China - PRC)

U.S. Nuclear Power Plants

Agriculture Offsets vs. Carbon Sequestration

Geologic Storage of CO^2

Long Range Goal: Develop a Continuous Process for the Production of Algal Biomass

Biomass Production

Areas meeting criteria for sun exposure & temperature

Fossil fuel-based electric power plants

Public sources of water/wastewater

Pate, R., “Biofuels and the Energy-Water Nexus”, Sandia National Laboratories, AAAS/SWARM, April 11, 2008, Albuquerque, NM

Fuel Extraction

Fuel Processing

Major Emitting Sources

All Direct Sources

All Indirect Emission Sources

Power plant

Factory

Residential/Commercial

Refinery

Mine/Drilling

Upstream (fuel producers) Downstream (consumers)

Energy Supply Chain (Stylized)

Source: Dallas Burtraw – Resources for the Future

Innovation is on the consumer side

• Dynamic Pricing-Pricing for incremental and time of use, not bulk sale of averaged price electricity.

• Smart Grid defined– Self healing/correcting– Motivate customers to be active grid

participants/controllers of grid– Resist attack-physical/cyber– Increased power quality for modern uses– Accommodate all generation/storage options– Facilitate markets– Optimize all assets/operations

So, you want to make money in energy solutions

• Ray’s advice for what it is worth– Get as close to the consumer as you can

• This is not production solutions, it is consumption solutions

– The answer is simple: Consumers want to “TiVo ®” energy

• Let them• Real time pricing• Instant consumption feedback• Information• Remember Dirty Jobs……

Questions?

Ray Hammarlund

(785) 271-3179

r.hammarlund@kcc.ks.gov