1
Cooling SignificanceCalifornia 2003 Summer Peak-Day Load
0
5
10
15
20
25
30
35
40
45
50
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Residual (Other Area)
Res. - Air Conditioning
Com. - Air Conditioning
Com. - Interior Lighting
Res. - Miscellaneous
Com. - Other
Res. - Refrigerator
Com. - Ventilation
Res. - Cooking
Res. - Clothes Dryer
Com. - Refrigeration
Remainder of Com & Res
Industrial Sector
TCU, Agr & Other Sectors
Time of Day (hour starting)
System Peak
Demand (GW)
Source: CEC Hourly Electric Load ModelSOLID Energy, Inc.
2
Advantages of Solar Cooling
Large potential for savings – electric production & peak
Conventional, electrically powered cooling technology is replaced by a thermal method
Savings in running costs for heating and cooling (substitution of electric and fossil energy - 20 to 70% of energy used by electric compressors)
Reduces peaks load Located on-site (T&B Benefits) Reduction of the local emissions (CO2 etc.) Easier operation and maintenance Less vibration and noise
SOLID Energy, Inc.
3
EU Solar Cooling
To date, about 100 solar cooling and air-conditioning (A/C) systems have been installed in Europe. (5-10 in the U.S.)
Their specific collector area is ~3 m2/kW for water chillers, or 10m2 per 1000 m3/h of air volume flow in desiccant systems.
Their primary energy savings potential is between 20-70% of on-site electric compressor consumption.
Pay-back period of 6 years to over 20 years at today’s energy prices.
Most of the systems so far have been installed in Germany, Spain and Greece.
Source: European Renewable Energy Council (EREC), 2005SOLID Energy, Inc.
4
AST ECONOMICSLarge Solar Domestic Hot Water (DHW)
Federal Energy Management Program (FEMP) Economic Analysis of Solar Thermal Domestic Hot Water Systems Installed at the Federal Correction Institution, Phoenix, AZ replacing electric domestic hot water (DHW) production:• Life Cycle Energy Production: 28,640,000 kWh
• Cost of Production: 4 Cents per kWh• Equivalent Cost of Production Assuming Natural Gas
Displacement: $9.55 per MMBTU if system were displacing natural gas which is less than recent average price of natural gas.
Solar Space and Process Heating has Similar Economics to DHW with Paybacks Ranging from Seven to Twenty Years Depending on Fuel Displaced
Recent Study by Salt River Project in Arizona Showed Paybacks from 17 to 23 Years for Solar Space Cooling/Heating Systems
SOLID Energy, Inc.
5
Pools and Municipal Projects
Melegnano Italy 202 m² 145 kW
Replacement of OilPayback of 5 Years
SOLID Energy, Inc.
6
Apartments
Hans Riehl Gasse, Austria, 321 m², 225 kW, GRS/ESCo
Replacement of OilPayback of 5 Years
SOLID Energy, Inc.
7
Hotels, Dormitories
Hotel, Burgas, Bulgaria 101 m², 71 kW Replacement of Propane GasPayback of 4 Years
SOLID Energy, Inc.
8
Hospitals
Dusseldorf, Germany 190 m²/133 kW, GRS Replacement Natural GasPayback of 9 Years
SOLID Energy, Inc.
9
U.S. Cost Savings Example
Graph does not reflect the additional O&M savings that would be provided, a somewhat minor savings.
Graph is based on study for City of Scottsdale, Arizona.
SOLID Energy, Inc.
10
EU CO2 Reductions from RenewablesProjected CO2 emissions reductions (Million tonnes)
(20% Renewables by 2020) Wind 236 Photovoltaic 24 Solar Thermal 92 Biomass 326 Hydro 35 Geothermal 15TOTAL 728
[17.3% of total EU 15 GHG (Greenhouse Gases) emissions in 1990]
Cumulative investment 443 (in Billion Euros)
Cumulative avoided costs (External+fuels) 242.5 - 439.7
Source: EREC, 2006SOLID Energy, Inc.
11
NREL Study*
California – Solar Hot Water in Residential and Commercial Buildings (Trillion BTU/Billion kWh)
Fuel Used for Heating Water Natural Gas Oil + LPG Electricity
Res. Comm. Res. Comm. Res. Comm. 180 78 6 2 14 / 4 6 / 2
Estimated Savings from SHW Natural Gas Oil + LPG Electricity
105 3 8 / 2.3 Technical CO2 Emissions Reduction (MMTCO2e) Natural Gas Oil + LPG Electricity
5.9 0.2 1.1 / 2.5 7.3 / 8.6 *Technical Report NREL/TP-640-41157
March 2007 SOLID Energy, Inc.
12
Additional CO2 Reductions
Estimates Range from 10-30 additional MMTCO2e
(Industry is in the process of better quantifying this number.)
SOLID Energy, Inc.
13
AST Barriers AST Technology = “On the shelf technology”
- EU & Asia no barriers as AST is not “rocket science”- US limited chiller models due to miniscule market- In the past technology was not attractive- BTU meters (95 to 98% accurate)
Financial - Standard renewable fuel- Purchase fuel up-front - Interest in financial community - Focus is on new state of art technology not
commercially available technology Thermal brand issues due to program design - Unattractive and bad actors in early 80’s
SOLID Energy, Inc.
14
CA Regulatory Barriers for AST
Program Design - Faulty Program Design in early 1980’s resulted in significant thermal brand issues
CA’s policy focus has been on electricity not natural gas
Legislative: - Emphasis on electricity (SB 1)
- Ratepayer class (should residential pay?) Regulatory:
- “2 For Issue” saves both electricity and natural gas- AST not on radar screen- CA RPS renewable eligibility / electricity focus
SOLID Energy, Inc.
15
Solutions for CA - AST CSI Non-PV Draft Handbook
- Includes Solar Thermal AC, limited to electric displacement (heating applications not allowed)
Self-Generation Incentive Program (SGIP) - PUC CSI Decision directed gas saving DG to apply to SGIP program- Advantage of combining ratepayer incentives with private customer investment- PUC has authority to include DG technologies that displace both natural gas and electricity
Tax treatment- State property tax exemption- Federal tax incentives
SOLID Energy, Inc.
16
Proper Program Design Essential
Proposed SGIP Program Design- Ten-year declining incentive program for gas & electric displacement- Performance Based Incentives (PBI) based
on metered output(x cents per kWh for cooling and x cents
per kWh equivalent for heating)- Transparent program & utility system data for
reasoned analysis and program adjustment- Do not support building mandates for AST
SOLID Energy, Inc.
17
Questions?
Lori A. Glover, co-CEOSOLID Energy, Inc.10645 N. Tatum Blvd.Phoenix, Arizona 85028(602) [email protected]
Jan McFarland, ConsultantSOLID Energy, [email protected](916) 346-7578
SOLID Energy, Inc.