WG May June 2011 - World-Genworld-gen.com/magazine/2011/WORLD-GEN-2011-Jun-Jul.pdfgas turbine, a...

WORLD GENERATIONWWW.WORLD-GEN.COM JUNE/JULY 2011

VOLUME 23 - NUMBER 3Our 23rd Year

GRID CHALLENGE METby Dick Flanagan pg. 1

BLUEPRINT FOR ENERGYby Phil Davis pg. 1

RELIABILITY, TRANSMISSION VEX INDUSTRYby Lyn Corum, Class of 2003 pg. 13

CO-FIRING WOOD PELLETS WITH COALby Alison Ernst pg. 14

AMEREN, EPRI DEVELOPby Omar Siddiqui pg. 15

BIOMASS POLICY by Roger D. Stark pg. 15

EXTENDING NETWORK CAPACITIESby Marc Bartlett pg. 16

INDIAN POINT’S LICENSE RENEWAL by Jerry Kremer pg. 17

DRIVING INNOVATION TO MARKETby Dr. Nick Rigas pg. 17

FOSSIL FUELS VS. BIOFUELS by Jennifer Chu pg. 18

EEI REPORTS TRANSMISSION INVESTMENTSby James P. Fama pg. 18

THE PEABODY PLANby Gregory H. Boyce pg. 19

DEPARTMENTSPUBLISHER’S LETTER pg. 3

INDUSTRY NEWS pg. 4-9

INTERNATIONAL NEWS pg. 10-11

NEWSMAKERS pg. 12

CALIFORNIA NEWS pg. 13

GRID CHALLENGE METBY DICK FLANAGAN

NORCROSS, GA - The Obama Administration’sreport, “A Policy Framework for the 21st CenturyGrid,” is part of the President’s Blueprint for a SecureEnergy Future. The report highlights the opportuni-ties of a modernized electrical system, which can berealized if we continue to invest in the technology,education and research necessary to make smart grida reality.

The report highlights the upgrades necessaryfor a sustainable and secure energy future, and itrenews our nation’s commitment to that investment.Perhaps most significant, the report targets the edu-cation and innovation required to better inform ener-gy users and to enable greater customer participationin meeting the challenges of our energy future. Suchconsumer engagement in more intelligent energymanagement is key to our energy future. It willenable wise and long lasting investments in the smartgrid so that customers can take advantage of theactive energy management opportunities it enables.Experience shows that energy consumers who

(continued on page 22)

MILAN, IT - On a count of 3-2-1, Paul Browning,CEO of GE Thermal Products and Dr. Celel Metin,CEO of MetCap Energy Investments unveiled theFLEXEfficiency 50 combined cycle plant model.

The model was presented to the media at apress conference held during Power-Gen Europe 2011in Milan, attended by World-Gen.

The MetCap plant is designed to produce theworld’s first integrated renewable combined cyclepower plant to seamlessly integrate natural gas, windand solar thermal power. The IRCC plant is engi-neered by integrating a next-generation 50HZ 9FBgas turbine, a 109D-14 steam turbine, GE's W28 gen-erator, 22 megawatts from GE wind turbines, 50megawatts from eSolar and a Mark Vie control sys-tem linking all the technology.

“As our customers seek to increase theiruse of renewable energy, the challenge of gridstability sharpens. They are under added pres-sure to achieve higher levels of efficiency andlower emissions for natural gas power plants.Paul Browning (r)with Dr. Celel Metin in front

of the IRCC model.

Phil Davis, Schneider Electric

BLUEPRINT FOR ENERGYBY PHIL DAVIS


WG_June-July2011_WG_May_June 2011 7/20/11 9:10 AM

WORLD-GENERATION JUNE/JULY 2011 V.23 #32

AFTER MARKET BOILERS NUCLEAR SCR TURBINES

AQCS

Tel: 908-605-2800 www.hitachipowersystems.us [email protected] Power Systems America, Ltd. 645 Martinsville Road Basking Ridge, NJ 07920

... vertically integrated to meet yourtotal power generation and environmental needs.

HITACHI POWER SYSTEMS AMERICA

CATIH

EWOPI HC

METSYSR E

CIREMAS M

AC



PUBLISHER’S LETTER

Dick Flanagan

WORLD-GENERATION2 PENN PLAZASUITE 1500NEW YORK, NY 10121212.292.5009 [email protected]

Today’s power generation technology is serving yesterday’s power grid and GE has takenthe challenge of grid stability head-on with its newly launched, $500 million FlexEfficiency50 plant technology. Drawing on its jet engine expertise, GE engineered a plant to doubleramp up rates to balance the grid in response to the fluctuations of wind and solar. World-Gen’s reporting from the press conference held during Power-Gen Europe starts on page 1.

“A Policy Framework for the 21st Century Grid” starts to address challenges. It’s time tointegrate technology, energy and policy, Phil Davis of Schneider Electric says on page 1.Rather than large scale, he sees a smaller scale pilot similar to “Envision Charlotte” whichcan bring together like-minded customers and supply a policy microgrid that will help usunderstand what works, not only technically, but politically. Smart policy could spur signifi-cant improvements across the commercial building sector. Commercial buildings consume25 to 30 percent of our energy.

Federal and state agencies are focusing attention on assuring the general public alloperating nuclear plants in the US are safe. In California, public attention is being focusedon speeding up seismic examinations of the impacts newly discovered faults that lie about amile from the San Onofre and Diablo Canyon Nuclear Generating Stations will or will nothave, Lyn Corum writes on page 13. A new 300 mw gas-fired project has been proposed forthe San Diego area by Apex Power Group. Apex and its partner, Energy Investors Funds,have already signed a 20-year power purchase rolling agreement with San Diego Gas &Electric and must have the plant operating by the end of May 2014.

Utilities are laboring to add renewables says Alison Ernst on page 14. Biomass is a dis-patchable renewable resource, readily available in many areas that lack other renewableresources. Co-firing biomass in existing coal plants is a straightforward and quickly imple-mented solution. Indeck’s co-firing in Wisconsin is highlighted.

Ameren and the Electric Power Research Institute have developed an analytical frame-work to compare and prioritize projects on the basis of energy ef ficiency and carbon emissionsreduction benefits and costs across the spectrum of electric utility operations. Utilities gener-ally do not have a framework in place to compare such projects both within and especiallyacross operational areas on the basis of EE/emissions. Without a framework and set ofestablished evaluation metrics, decisions to prioritize capital and operational projects are typ-ically based on consideration other than ee/emissions, Omar Siddiqui tells us on page 15.

Roger Stark writes on page 15 that a variety of policies are vectoring US bioenergy mar-kets, creating a mix of uncertainties and opportunities that vary depending on federal policydeterminations and the financial markets. From a tax policy standpoint. Biomass continuesto benefit from incentives under applicable investment tax and production tax credits. Itremains to be seen how two key factors ef fect biomass. First, if the recent oil price spikeextends, consideration regarding energy security and project economics will likely favor bio-mass development. Second, the Obama Administration’s Clean Energy Initiative of fersopportunities for biomass proponents to af fect the policy agenda and could enhance the policyenvironment for biomass projects.

The UK government has mandated a 34 percent reduction in GHG emissions by 2020and a Parsons Brinckerhof f consortium focused its research on a test network connecting toan of fshore wind farm. Marc Bartlett highlights the results on page 16 leading to a wider-scale deployment under funding from OFGEM.

Since the devastating natural disasters that ravaged Japan and led to the issues thatarose at Fukushima Daiichi Nuclear Power Plant, there have been questions about the safetyof nuclear plants in the United States. In New York, those questions have led to intenseinterest in the safety and security of the Indian Point Energy Center, Jerry Kremer tells us onpage 17. Indian Point supplies up to 12 percent of the power for the entire State of New York,up to a quarter of the power consumed by downstate, and up to a third of the power con-sumed by New York City. The NRC has awarded Indian Point the highest possible safetyranking for nuclear power plants - a “green rating” - during each of the last six years.

3

WORLD-GENERATION2 PENN PLAZA � SUITE 1500NEW YORK, NY 10121 � (212) 292-5009, http://www.world-gen.com

Richard T. Flanagan Editor/PublisherTracy Whitman Art Director/DesignMary F. Kelly Production DirectorGail E. Parentaeu Circulation DirectorNancy Rothman ReprintsCarol Griffiths EuropeAlice C. Hunsberger Ph.D. Middle-EastBrooke C. Stoddard WashingtonMartin C. Pilsch Ports, USA

CONTRIBUTING EDITORSSpencer Abraham Class of 2002Jim Bueche Class of 2004Lyn Corum Class of 2003Ann T. Donnelly Ph.D. Class of 2000Tom Kuhn Class of 2005Jeremiah D. Lambert Class of 2000Colette Lewiner Class of 2006Fred Lyon Class of 2003Gene Martin Class of 2002Dennis M. McLaughlin Class of 2002Richard McMahon Class of 2001Ed Muller Class of 2000Jean Louis Poirier Class of 2000Daniel A. Potash Class of 2001Elliot Roseman Class of 2001Jim Reinsch Class of 2002Jim Schretter Class of 2002Richard Weissbrod Ph.D. Class of 2000

World-Generation ISSN# 1539-0039 is published bi-monthly (except Mayand August) by The Flanagan Group, Inc. Corporate offices: Two PennPlaza, Suite 1500, New York, NY 10121. Circulation office: PO Box 9157,Lowell MA 01853. Subscription rates: $75 per year in the United States;$100 in Canada, all other countries $120 per year. Single copies (pre-paid)$15.00 in the US; $20.00 in Canada, $24.00 all other countries. Back issues,if available, $50.00 (US and Canada only). Add $3.85 for shipping and han-dling. Mailed periodicals postage class paid in New York, NY, 10121 andadditional mailing offices. Volume 23, number 3, copyright 2011 by theFlanagan Group, Inc. All rights reserved. No part of this publication maybe reproduced or transmitted in any form or by any means without writtenpermission of the publisher.

Postmaster: Send all address changes to: World-GenerationPO Box 9157Lowell, MA 01853

Membership held in: BPA Worldwide

American Society of Business Publication Editors

National Press Club, Washington, DC

(continued page 12)



INDUSTRY NEWSGOOGLE FINANCES

MOJAVE, CA - Google and Citi willfinance part of the Alta Wind EnergyCenter (AWEC) being developed by Terra-Gen Power. Citi has underwritten the equi-ty financing for Alta Projects II-V, totaling570 MW. Citi and Google will each haveinvested $55 million in the 102 MW Alta IVproject.

SIEMENS SELECTEDORLANDO, FL - Siemens Energy has

received an order to supply power islandequipment for the Lake Side 2 combinedcycle power plant in Utah. PacifiCorp oper-ates as Rocky Mountain Power in Utah.Commercial operation of the plant isexpected in the spring of 2014. CH2M HILLwill install the equipment.

EEI AWARDSCOLORADO SPRINGS, CO - Cleco

Corp. received the 84th Annual EdisonAward for the company’s innovativeapproach to diversifying its generation fuelmix with the deployment of its newMadison 3 plant. EEI President Thomas R.Kuhn announced the award.

DELOITTE PREDICTSWASHINGTON, DC - A new study

from Deloitte shows the emergence of adiligent new attitude toward energy con-sumption in the United States. According tothe study, 52 percent of companies areworking to reduce their energy costs by 25percent on average over the next two tothree years. 68 percent of consumers aretaking extra steps to cut their electric billsbecause of the recession.

The study, “reSources 2011,” conduct-ed by Deloitte with strategy and marketresearch firm, The Harrison Group, polled3,200 household decision-makers and morethan 400 business decision-makers respon-sible for their company’s energy decisionsor energy policy.

The Deloitte study shows that about45 percent of Americans have directly feltthe pain of the recession, due to factorssuch as a job loss or income reduction. Italso shows that in addition to the almost 70percent of consumers who said theyreduced their electricity bills during therecession, 95 percent said they do notintend to increase their electricity use evenas the economy improves.

The Deloitte survey also shows thatcost consciousness and social awarenessare the twin drivers behind corporate ener-gy management, with 70 percent of compa-nies reporting the desire to cut costs as adriver behind their energy managementgoals, and more than half (53 percent) say-ing that their companies have set energy-related goals at least in part because it is“the right thing to do.”

RILEY TO SUPPLY WORCESTER, MA - Riley Power

received a contract to design and supply aSelective Catalytic Reduction system forSalt River Project's Coronado GeneratingStation near St. Johns, Arizona.

SRP is the largest provider of electrici-ty to greater Phoenix and is the metropoli-tan area's largest supplier of water.

GE ACQUIRESATLANTA, GA - GE intends to

acquire Ireland-based FMC-Tech, aprovider of real-time power line monitoringto accelerate the commercialization ofpower grid technology.

“With the acquisition of FMC Tech’sportfolio, GE will be able to provide a newlevel of grid intelligence to utilities,” saidBob Gilligan, CEO of Digital Energy for GEEnergy Services. “FMC-Tech’s expertise inonline power management and fault detec-tion combined with GE’s distribution man-agement expertise will drive faster technol-ogy development, implementation andbroader-based solutions.”

SERVICES:Detailed Design • EPC � CM � Studies Owner & Bank Engineering

CLIENTELE:Utilities � IPPs � Industry � Universities OEMs � Banks/Investors

PROJECTS (New, Retrofit & Modifications):Biomass � Solar (Thermal & PV) � Wind Simple & Combined Cycle � Fluidized Bed/PC/Stoker Boilers Biofuels � Landfill Gas � MSW � Gasification � Pyrolysis Plant Improvements � Air Pollution Control � Engine-Generators CHP/Cogeneration � Energy Savings � Facilities/Buildings & Systems

Please, contact us for full qualifications.

3131 Broadway Kansas City, Missouri 64111 816.285.5500 www.bibb-eac.comPresident: Lou Gonzales Manager Business Development: Kevin Bibb

4


WORLD-GENERATION JUNE/JULY 2011 V.23 #3 5

INDUSTRY NEWSNEW BATTERY DESIGN

CAMBRIDGE, MA - A radically newapproach to the design of batteries, devel-oped by researchers at MIT, could providea lightweight and inexpensive alternative toexisting batteries for electric vehicles andthe power grid. The technology could evenmake “refueling” such batteries as quickand easy as pumping gas into a convention-al car.

The new battery relies on an innova-tive architecture called a semi-solid flowcell, in which solid particles are suspendedin a carrier liquid and pumped through thesystem. In this design, the battery’s activecomponents — the positive and negativeelectrodes, or cathodes and anodes — arecomposed of particles suspended in a liquidelectrolyte. These two different suspen-sions are pumped through systems separat-ed by a filter, such as a thin porous mem-brane.

One important characteristic of thenew design is that it separates the two func-tions of the battery — storing energy untilit is needed, and discharging that energywhen it needs to be used — into separatephysical structures. (In conventional batter-ies, the storage and discharge both takeplace in the same structure.) Separatingthese functions means that batteries can bedesigned more efficiently. The new designshould make it possible to reduce the sizeand the cost of a complete battery system.

Flow batteries have existed for sometime, but have used liquids with very lowenergy density (the amount of energy thatcan be stored in a given volume). Becauseof this, existing flow batteries take up muchmore space than fuel cells and require rapidpumping of their fluid, further reducingtheir efficiency.

In addition to potential applications invehicles, the new battery system could bescaled up to very large sizes at low cost.This would make it particularly well-suitedfor large-scale electricity storage for utili-ties, potentially making intermittent, unpre-dictable sources such as wind and solarenergy practical for powering the electricgrid.

RMI, SUNTECH INKEDMADISON, WI - Hartz Solar

Hamilton selected RMT to design and con-struct its Hamilton Solar 7.5 mw Project.The facility, nominally rated at 7.5 MWac, islocated in Hamilton Township, MercerCounty, New Jersey.

RMT is responsible for EPC of thefoundations and racking systems, the pho-tovoltaic modules, the DC and AC collectorsystems, the SCADA system, and testingand commissioning.

The project will involve installation ofover 30,000 Suntech 280-Watt crystalline PVmodules.

DUKE CHOOSESANAHEIM, CA - Duke Energy will

use 73 Siemens wind turbines to build itsfirst wind farm in Kansas. Duke EnergyRenewables will own and operate the 168-megawatt Ironwood Windpower Project.Westar Energy will purchase all of the elec-tricity under the terms of a 20-year agree-ment.

NAVFAC PICKS ELSTERRALEIGH, NC - Elster announced

that the Naval Facilities EngineeringCommand is deploying Elster AmericanMeter gas meters and Elster AMCO Watermeters across 14 U.S. military bases. Elsterwill assist in support of the Energy PolicyAct of 2005, and the Energy Independenceand Security Act of 2007.

VESTAS UPGRADESPORTLAND, OR – Vestas announced

an upgraded range of 2 MW ridStreamer™turbines that provide significantly higherenergy production.

“The 2 MW GridStreamer™ turbineswill allow for optimal performance acrossall wind classes and site conditions,” saidMartha Wyrsch, President of Vestas.

W I T H M I L L I O N S O F D O L L A R S O N T H E L I N E , W H Y T R U S T Y O U R P R O J E C T T O A N Y O N E B U T R & S ?

222 South Riverside PlazaChicago, IL 60606312.236.7292 www.r-s.com

Offices also in Salt Lake City, Pittsburgh, Australia, Indonesia, India and Poland

If a job’s worth doing, it’s worth doing with Roberts & Schaefer.

Since 1903, Roberts & Schaefer has been a world leader in

the design, engineering, procurement and construction of

bulk material handling, coal preparation, and fuel blending

systems. We provide total solutions for fuel handling, as

well as limestone handling and grinding for CFB boilers,

limestone and gypsum handling for FGD scrubbers, and

ash handling systems. We’ve successfully completed projects

in 40 countries, on six continents, and we’re just getting

warmed up.

Whether it’s complete system development, upgrades, or modifications, it’s worth making a call to R&S.



UC, THAI INKRIVERSIDE, CA - The University of

California, Riverside and the ThailandInstitute of Scientific and TechnologicalResearch signed an agreement that willlead to researchers in Thailand installing aUC Riverside developed process that con-verts biomass and agricultural wastes intofuel. The steam hydrogasification processwas recently evaluated by the U.S. DOE.

GE TEAMSDESERT HOT SPRINGS, CA -

Competitive Power Ventures, GE EnergyFinancial Services and DiamondGenerating Corporation , co-owners of theplanned $900 million CPV Sentinel powerplant have closed the project financing. TheCPV Sentinel project is expected to create300 construction jobs and nearly 400 indi-rect jobs.

B&W EXPANDSEUCLID, OH - Babcock & Wilcox

Nuclear Operations Group has received N-Stamp accreditation from the AmericanSociety of Mechanical Engineers.

The certification is considered theindustry standard for quality assurance ofmaterials, design, construction, operation,inspection and continuing maintenance ofnuclear facilities.

NEW STUDY ON CCR’SWASHINGTON, DC - The proposed

federal regulation of coal combustion residu-als (CCRs), or “coal ash,” from electric utilitygenerating units would result in as many as316,000 lost jobs in the United States.

The job losses are net estimates thatinclude both job losses and gains from theregulation. The range in these job impactestimates depends on which of the proposedregulatory options the U.S. EnvironmentalProtection Agency (EPA) ultimately adopts.

The cost of the proposed optionsranges from roughly $23 billion to as muchas $110 billion over a 20-year period.

The analysis, “An EconomicAssessment of Net Employment Impactsfrom Regulating Coal CombustionResiduals,” was undertaken by VeritasEconomic Consulting on behalf of the UtilitySolid Waste Activities Group (USWAG).

USWAG is a consortium of approxi-mately 80 utility operating companies, theEdison Electric Institute (EEI), the NationalRural Electric Cooperative Association(NRECA), and the American Public PowerAssociation (APPA).

With coal-based generation providing47 percent of the nation’s electricity, federalregulation of coal ash could increase electric-ity rates in some regions, restrict the recy-cling and reuse of coal ash, and eliminatemany of the jobs on which ash reuse andrecycling depend.

Coal ash refers broadly to the residualsolid material from the combustion of coal toproduce electricity.

Coal ash has been used for more than80 years in many applications, including con-crete production, building products and roadconstruction.

In 2009 alone, more than 55 milliontons of ash, over 41 percent of all CCRs,were used in such applications. Should EPAchoose to regulate ash, many beneficial usesand associated jobs would be eliminated, andutilities would incur significant additionalmanagement requirements and costs, forc-ing some power plants to retire prematurely.

SIEMENS, TENDRIL TEAMORLANDO, FL - Siemens Energy,

Inc. and Tendril entered into a strategicalliance to market the Tendril Connect™platform to utilities.

Siemens will deliver the Tendril solu-tions to energy marketers and distributionnetwork operators targeting U.S. andCanadian markets.

Siemens Venture Capital has investedin Tendril, making this its eighth invest-ment in the Smart Grid area.

INDUSTRY NEWS



CFO’S SURVEYEDDURHAM, N.C. -- Eighty percent of

chief financial officers in the U.S. say thehigh price of oil is negatively affecting theirfirms, with 61 percent describing theeffects as “significant.” Companies inEurope, Asia and China report similar con-cerns, spurring a range of initiatives aimedat cutting fuel consumption.

“We may be reaching a tipping pointon the cost of traditional fuels,” said JohnGraham, professor of finance at Duke’sFuqua School of Business and director ofthe survey. “We’re seeing more companiesembrace ‘green’ initiatives and positionthemselves to become less reliant on oil inthe future.”

CFOs in the U.S. have already institut-ed or plan to institute a number of policiesto manage higher oil prices: 53 percent saythey are increasing telecommuting/telecon-ferencing; 51 percent are improving facili-ties management, including reduced light-ing and improvements to HVAC systems;48 percent are reducing business travel;and 39 percent are turning to more efficientshipping methods such as consolidatingshipments.

Forty-four percent of U.S. CFOs saytheir companies have already passed onfuel price increases to consumers by raisingprices, or have made plans to do so.

Among European companies, 71 per-cent of CFOs say they have been negativelyaffected by high oil prices, with even higherresponses in Asia (78 percent) and China(88 percent). As a result, European CFOsare increasing telecommuting/teleconfer-encing (60 percent of companies), reducingbusiness travel (49 percent) and raisingprices on products and services (44 per-cent).

In Asia, 72 percent of firms havereduced or plan to reduce business travel,76 percent are increasing the use of tele-conferencing/telecommuting and 73 per-cent are improving facilities management.Consumers in Asia will likely feel the pinchfrom higher fuel prices; 58 percent of CFOssay their firms will pass on the increasedcosts.

Chinese finance executives say theircompanies are using more efficient produc-tion processes (61 percent) and improvingfacility management (60 percent) to man-age high oil prices. Fifty-three percent areusing more efficient shipping methods, and55 percent are covering higher fuel pricesby raising prices.

SIEMENS TRANSPORTSORLANDO, FL - Siemens transported

22 wind turbine nacelles and hubs by railfrom its new wind turbine nacelle assemblyfacility in Hutchinson, Kansas. Shipping the87-metric-ton nacelles by train has signifi-cant efficiency and environmental benefits,including an up to 80 percent carbon foot-print reduction.

ACLARA ADDEDTALLAHASSEE, FL – The City of

Tallahassee is the first utility to add ananalysis of water data to its AclaraENERGYprism® online customer-care solu-tion.

The ENERGYprism application pro-vides easy explanations that show cus-tomers how they are using electricity, gas,and now, water. The application also pro-vides comparable water consumption data.

GE LAUNCHESCAMBRIDGE, UK - GE launched the

new Grid IQ™ Transformer AnalyticsService to uncover potential problems andhelp proactively reduce unplanned outagesby identifying transformer failure condi-tions before conventional alarms are raised.

“We can reduce the risk of unexpect-ed failure and unplanned outages by up to80 percent”, said Luke Clemente, GM, GEEnergy Services.

PATTERN CONSTRUCTSSAN FRANCISCO, CA - Pattern

Energy Group has begun construction onthe 150 mw Spring Valley Wind projectlocated on public lands.

Pattern has entered into a 20-yearPPA with NV Energy and selectedMortenson Construction to manage con-struction of the project. which will use 66Siemens 2.3 MW wind turbines.

INDUSTRY NEWS

7



MIT IMPROVES SOLARCAMBRIDGE, MA - Researchers at

MIT have found a way to make significantimprovements to the power conversion effi-ciency of solar cells by enlisting the ser-vices of tiny viruses to perform detailedassembly work at the microscopic level.Carbon nanotubes can enhance the efficien-cy of electron collection from a solar cell'ssurface.

SOLAR TO CO-OPROCKVILLE, MD - Standard Solar is

developing a 1.5 MW solar electric systemin northern Taos County, New Mexico incooperation with Taos-based Kit CarsonRural Electric Cooperative. Standard Solarand KCEC have entered into a PowerPurchase Agreement over the next 25years.

URS SELECTED SAN FRANCISCO, CA - URS

Corporation has been awarded a contractby Hoosier Energy Rural ElectricCooperative to provide engineering, pro-curement, and construction services toupgrade existing flue gas desulfurizationsystems at Hoosier Energy’s MeromGenerating Station in Indiana.

EX-IM BANK FINANCESWASHINGTON, DC - The Board of

Directors of the Export-Import Bank of theUnited States voted to approve an $805.6million direct loan to South Africa’s state-owned electric power utility, Eskom,Limited.

Ex-Im Bank’s current fiscal yearfinancing in sub-Saharan Africa is nearly$1.5 billion, nearly double the previous oneyear record of $812 million set during thefiscal year ending September 30th.

The Eskom power plant financing willsupport Eskom’s purchase of engineeringand construction management servicesfrom Black & Veatch International ofOverland Park, Kansas, and will be used toconstruct the Kusile facility.

The Kusile plant is designed withadvanced technology and equipment.Kusile will be the first coal-fired power plantin South Africa to include sulfur dioxidescrubbers. To help conserve water, theplant will use an air cooling system.

The plant also is designed to be car-bon capture and sequestration ready.

ROCKETDYNE TESTSCANOGA PARK, CA - Pratt &

Whitney Rocketdyne successfully complet-ed the last in a series of performance testson its compact gasifier, making the technol-ogy ready for implementation in a demon-stration plant.

The compact gasifier is designed toreduce the cost of coal gasification, providea clean alternative fuel source and strength-en U.S. energy security. With some modifi-cations it could also gasify biomass.

“The results from our compact gasifi-er tests demonstrate our ability to achievethe higher performance levels we predictedand confirm the economic advantages weexpect for commercial use of our technolo-gy,” said Neeta Patel, director, FuturePrograms, Pratt & Whitney Rocketdyne.“We look forward to working with our teamto further prove the technology in a demon-stration plant.”

Compact gasification is a higher-effi-ciency and lower-cost alternative to currentgasification systems.

The capital cost to build a commer-cial-scale compact gasification plant usingPratt & Whitney Rocketdyne’s technologyis estimated to be 10 to 20 percent less thanconventional gasification plants.

Pratt & Whitney Rocketdyne’s com-pact gasifier is also expected to reduce car-bon dioxide emissions by up to 10 percentcompared to standard gasification technolo-gies.

INDUSTRY NEWS



INDUSTRY NEWSWIRES STUDY FINDS

WASHINGTON, DC - A new analysiscommissioned by WIRES shows that annu-al investment in new electric transmissionfacilities could soon reach $12-$16 billion inthe United States, resulting in $30 - $40 bil-lion in annual economic activity. This trans-lates into support for 150,000 - 200,000 newfull-time jobs in the U.S. in each of the next20 years and between 20,000 and 50,000new jobs each year in Canada. The studywas conducted for WIRES by senior econo-mists at The Brattle Group.

WESTINGHOUSE WELCOMES

PITTSBURGH,PA - Westinghouse wel-comed the announcement from the UKnuclear safety regulator that the“Regulatory Issue” connected with thedesign of the company’s AP1000® nuclearplant had been lifted. This move clears a sig-nificant obstacle on the pathway towardsDesign Acceptance Confirmation by theOffice for Nuclear Regulation that is cur-rently assessing the AP1000 reactor as partof the UK Generic Design Assessmentprocess. In addition, this announcementfrom the ONR is consistent with theprogress made in the United States, whereWestinghouse recently submitted Revision19 of the AP1000 design documentation tothe Nuclear Regulatory Commission. Thecompany believes that this revision address-es all open NRC items, and thus shouldallow the NRC to confirm final approval forthe AP1000 design later this year.

SIEMENS EXPANDSANAHEIM, CA - Siemens Energy

announced plans for a new wind servicewarehousing operations in Woodward,Oklahoma. Construction is expected to becompleted by the end of 2011. With a totalof 64,000 square feet, the combined maincomponent, tooling and spare parts facilitieswill be Siemens’ largest wind power servicedistribution center in the U.S. Over the nextfive years, the company expects to create upto 40 “green-collar” jobs at the facility.

“Oklahoma has demonstrated a grow-ing commitment to renewable energy devel-opment and we are delighted to become res-ident members of the Woodward businesscommunity,” said Tim Holt, Siemens' CEOfor Renewables Service.

Siemens is actively involved in windprojects across Oklahoma. The companyprovided 44 SWT-2.3-93 wind turbines toOklahoma Gas & Electric (OG&E) and theUniversity of Oklahoma (OU) for the OUSpirit wind farm.

GE, CISCO TEAMANAHEIM, CA - GE and Cisco have

teamed up to provide park-wide connectivi-ty to the first phase of First Wind’s Milford,Utah, wind farm. The GE-pioneered solu-tion uses Cisco’s networking infrastructureto provide up-tower and down-tower wire-less connectivity across all 39 GE turbines.

MAG ACQUIRES ERLANGER, KY - MAG acquired the

Forest Liné Industries Group. The companyoperates sites in France, Germany, Chinaand Canada, employing about 300.

FLI is a supplier to the aerospaceindustry and in renewable energy systems,such as wind turbines.

S&L INKEDCHICAGO, IL - Goldwind USA has

selected Sargent & Lundy to provide electri-cal engineering, design, and procurement ser-vices for the 109.5-MW Shady Oaks WindFarm Project, located in Lee County. It willconsist of 71 Goldwind permanent magnetdirect drive (PMDD) turbines. The project isscheduled to be in service by the end of 2011.


INTERNATIONAL NEWS


AUSTRALIAThe Australian Government has

selected the AREVA Solar, CS Energy andWind Prospect CWP consortium’s “SolarDawn” as the preferred solar thermalpower project in Round 1 of the AustralianGovernment’s Solar Flagships Program.‘Solar Dawn’ is a proposed 230 mw solarthermal gas hybrid plant.

AUSTRALIAA consortium of GE and Australian

company Leighton Contractors hasreceived a $130 million contract to supplyand install 22 GE 2.5-100 wind turbines forthe Mumbida Wind Farm. The MumbidaWind Farm is a 50/50 partnership betweenVerve Energy, a Western Australia govern-ment-owned utility, and Macquarie Capital.

DENMARKSiemens Energy has installed the first

prototype of its next generation offshorewind turbine in Høvsøre, Denmark. Thenew SWT-6.0-120 wind turbine with a powerrating of 6 megawatts and a rotor diameterof 120 meters uses the innovative Siemensdirect drive technology. The new SWT-6.0-120 is the third direct drive wind turbinetype developed by Siemens.

FINLANDWärtsilä announced a co-operative

agreement to develop and integrate VersaPower's SOFC technology into Wärtsiläproducts. Wärtsilä has already launchedsuccessful pilot projects using fuel cell tech-nology supplied by Topsoe Fuel Cell A/Sheadquartered in Denmark, and this co-operation will continue.

FRANCEAlstom will provide eleven ECO 110

wind turbines to Landes de Couesmé windfarm in France. The wind farm will have atotal installed capacity of 33 MW.

FRANCEGDF SUEZ, VINCI and AREVA have

signed a partnership agreement to build upa competitive, sustainable offshore windindustry. The government is targeting 6000MW of offshore wind capacity by 2020 andintends to build five offshore wind farmsalong the French coast.

GERMANYGE and Gehrlicher Solar have begun

construction on a solar power plant inAschheim, Germany. The 1 megawatt solarpark will cover two hectares.

KUWAITDresser-Rand Group announced an

agreement with the Kuwait NationalPetroleum Company to produce 45 controlpanels for installation at the Mina AhmadiRefinery.

LITHUANIAWestinghouse Electric Company pre-

sented its proposal for a new nuclear powerplant at Visaginas to Lithuanian PrimeMinister Andrius Kubilius and other seniorofficials. The proposal is based around thecompany’s state-of-the-art AP1000 nuclearpower plant.

MALAYSIAThe Bosch Group is expanding its

photovoltaics business and planning a newmanufacturing site in Penang, Malaysia,with an investment of 520 million Euros.

MEXICOAlstom Power won a contract worth

approximately €40 million with Spain’s ACSGroup to provide power equipment and ser-vices for the El Sauz combined cycle powerplant in Queretaro, one of Mexico's mostindustrialized states. Under a separate 7-year long-term service agreement, Alstomwill also provide services for the gas tur-bine and generator.

PANAMAThe public bid for the expansion of

the Miraflores Power Plant has been con-cluded by awarding the contract to HyundaiHeavy Industries Co. Ltd. for two enginesof the MAN B&W 12K80MC-S design.

Everything Solar Under the Sun

For solar solutions spanning the industry spectrum, one show outshines the rest. Only SPI connects you with every important vendor and service provider to advance your project from planning through operations. Just walk the show to see, touch, compare, discuss and learn about all aspects of the solar energy industry. Get up to speed on the latest technologies shaping the future of solar—and the success of your business.

Registration Opens Early June.Mark your calendar now for North America’s largest B2B solar event.

October 17-20, 2011 Dallas Convention CenterDallas, Texas

For more informationwww.solarpowerinternational.com

Presented by:

WHERE NEW SOLUTIONS TAKE SHAPE


RUSSIACisco and the Federal Grid Company

of Russia signed a memorandum of under-standing that establishes a long-term collabo-ration to improve the reliability and efficiencyof the country’s power grid.

Prior to this memorandum of under-standing, Cisco had already announced a $1billion investment in Russia over the nextdecade to drive entrepreneurship and energyefficiency. The investment also includes $100million in venture capital support, construc-tion of a dedicated R&D facility in “Russia’sSilicon Valley” Skolkovo, and the develop-ment of a collaboration model with Russianbusiness in verticals including smart grid.

SAUDI ARABIAGE has been selected to provide gas

turbine technology and services for fourSaudi Electricity Company power plantexpansions. The total value of the agree-ments with GE is expected to be more than$500 million and the power plant expansionsare expected to add more than 100 new localjobs.

SAUDI ARABIAWärtsilä has been awarded the con-

tract to supply the engineering, equipmentand construction for a power plant to bedelivered for Hail Cement, a Saudi Arabiancement manufacturer, to provide electricityfor their own industrial use.

SCOTLANDSeaRoc, part of the Natural Power

group, has recently been appointed asConstruction Design and Management(CDM) coordinator for wind farm developerMainstream Renewable Power on the Neartna Gaoithe offshore site.

SCOTLANDAlstom has taken a 40% equity share in

Scottish renewable energy company AWSOcean Energy, representing Alstom’s entryto the wave energy market. Alstom will be ashareholder with Shell Technology VenturesFund 1 and Scottish Investment Bank.

The move complements the existingactivities of Alstom’s Ocean Energy businessin developing its 1 MW commercial-scaletidal turbine prototype, the BELUGA 9.

SPAINAlstom has signed a contract with GAS

NATURAL FENOSA for the maintenanceand operational support of the Cartagenagas-fired combined cycle power plant inSpain. This 20-year contract is worth morethan 270 million Euros.

SWEDENSiemens is now offering an industrial

gas turbine in the 35-40 MW range. The shaftpower output of the new gas turbine is37MW and it has an efficiency of 40%. It onlytakes 10 minutes from start to full load. TheSGT-750 was designed at the SiemensEnergy site in Finspong, Sweden, where it isalso being built and tested. The delivery ofthe first unit is expected in 2012.

SWITZERLANDABB will partner with EKZ, a leading

Swiss distribution utility, on a pioneeringenergy storage pilot project. The pilot stor-age facility will be integrated into the utility’spower distribution network and evaluated inkey areas such as balancing peak loads,intermittent power supply, and the viabilityof such a solution for grid optimization.

UKBabcock Power UK Ltd. launched a

new office site located in Esher, Surrey.Babcock Power UK's primary goal is to pro-vide solutions for power producers thataddress the recent EU Regulations concern-ing Coal Fired Power Plants and theirSelective Catalyst Reduction systems.

UKDoosan Power Systems has chosen

Emerson Process Management’sPlantWeb™ digital plant architecture withthe Ovation™ expert control system to con-trol a new carbon capture demonstrationproject at the Scottish and Southern EnergyFerrybridge coal-fired power station in thenorth of England. The demonstration projectwill be the largest in Europe and is capturing100 metric tons of carbon dioxide per day.

UKABB has commissioned its first

DynaPeaQ® energy storage installation forUK Power Networks “DynaPeaQ® is an inno-vative technology that advances the integra-tion of renewable power generation.

UKCentrax Gas Turbines has expanded

its range of power generation products in anagreement with Siemens to package two ofSiemens gas turbines product ranges.Under the agreement both the SiemensSGT-300 and SGT-400 gas turbines will bepackaged at the Centrax UK plant in NewtonAbbot.

Centrax will initially market the pack-ages for the industrial power generation andcogeneration markets in the UK, France,Italy, The Netherlands and Belgium. Thetwo Siemens turbines are sized between 8and 15 MWe and will add to the Centrax gasturbine powered generator sets which rangefrom 2.5 MW to 64MW.

UKElster announced that Scottish and

Southern Energy Supply Limited (SSE) hasselected Elster as their Smart Metering part-ner for the first phase of their smart meter-ing deployment, to be completed by mid-2012.

VENEZUELAVogt Power will design, fabricate and

deliver four unfired, three-pressure levelwith reheat, natural circulation HRSGs, oper-ating behind Siemens SGT6-5000F gas tur-bines. The HRSGs will be installed at theCTCC Termocentro Power Plant, locatednear Caracas.



NEWSMAKERS


DELOITTE APPOINTS

Deloitte has appointed John McCueas the leader of its energy & resourcesindustry group in the United States.Deloitte also named Mariene Motyka as itsalternative energy leader.

AREVA NAMES TWO

AREVA Solar announced Dr. PhillipGleckman has joined the company as itsnew Chief Technology Officer.

Promoted Milton Venetos to be thecompany’s new Senior Vice President,Product Management, for the company’sglobal concentrated solar power productlines.

PACE ANNOUNCESPace Global

Energy Serviceshas named TimHeinle as vice presi-dent in the renew-able energy devel-opment group inthe Fairfax, VAoffice.

ALSTOM APPOINTSAlstom Grid

appointed KeithStentiford to thenewly-created position of Regional VicePresident for North America,based in Washington, D.C.

DYNEGY APPOINTS Dynegy announced that Kevin T.

Howell has been named Executive VicePresident and Chief Operating Officer,effective July 5, 2011.

EIPC APPOINTSThe Executive Committee of the

Eastern Interconnection PlanningCollaborative (EIPC) announced theappointment of David Whiteley as itsExecutive Director.

DELL APPOINTEDJan Dell,

CH2M HILL VicePresident, Energy& Water Division,has been appointedby the UnitedStates Secretary ofCommerce GaryLocke to serve as a member of the NationalClimate Assessment Development andAdvisory Committee.

ANGA APPOINTSAmerica's

Natural Gas Alliance(ANGA) has namedAmy Farrell as VicePresident ofRegulatory Affairs.Farrell joins ANGAfrom Exxon MobilCorp.

SUZLON ADDSCHICAGO, IL - Suzlon Wind Energy

Corp. has added Derek Lim Soo as VicePresident of Sales and Marketing, with afocus on Canada in addition to supportingNorth America.

NATIONAL GRID NAMESLee Eckert has been appointed

National Grid's U.S. Chief Financial Officer.He joins National Grid from MeadWestvaco.

RAYBURN NAMEDAT LBG

Steve Rayburnhas been named anassociate in theHouston office ofLeggette, Brashears& Graham, a profes-sional groundwaterand environmentalengineering services firm.

HYDER JOINSSkipping

Stone announcedthat Chuck Hyderhas joined the firm as Director of ResourceManagement, based in the Atlanta office.

SAIC EXPANDSAlan Bedell and Jack Whiteside, vice

presidents of SAIC Energy, will relocate tothe Middle East to better serve customersin the Gulf Cooperation Council Nationsand the MENA region.

AWEA INSTALLSThe American Wind Energy

Association installed its Board of Directorsfor 2011-2012. Ned Hall of AES is the newBoard Chair.

John McCue

Amy Farrell

Tim Heinle

Mariene Motyka

Dr. Phillip Gleckman Milton Venetos

Steve Rayburn

Chuck Hyder

Keith Stentiford

Jan Dell

The US Department of Energy selected the ClemsonUniversity Restoration Institute (CURI) to design, build andoperate the world’s largest wind turbine drivetrain testing facil-ity on Charleston, SC’s former Navy Base. The $98 million dri-vetrain testing facility will be one of only three such facilitiesworldwide and is capable of simultaneously testing power traincomponents up to 15 megawatts and 7.5 megawatts. The othertwo facilities are located in Golden, Colorado and Pamplona,Spain, testing only up to 5 megawatt units each, Dr Nick Rigastells us on page 17. The testing facility is an 82,000 sq. ft. for-mer Navy warehouse with adjacent commercial port and railoperations and onsite fabrication and heavy-lift equipment.

In an ef fort to combat soaring fuel prices and cut green-house gas emissions, the aviation industry is racing toward theuse of biofuels. Researchers at MIT say the industry may wantto make sure it has examined biofuels’ complete carbon foot-print before making an all-out push. When a biofuel’s originsare factored in, conventional fossil fuels may sometimes be the“greener” choice. The study is the culmination of four years ofresearch funded by the Federal Aviation Administration andAir Force Research Labs, Jennifer Chu shares on page 18.

A new Edison Electric Institute report projects thatAmerica’s electric companies will invest approximately $61 billion (nominal dollars) in transmission infrastructureimprovements by 2021. This spending estimate, derived from asampling of transmission projects now underway or planned,will be on top of the nearly $55 billion (2009 dollars) that EEImembers invested to improve the nation’s grid between 2001 to 2009, Jim Fama projects on page 18. The EEI report of fers a detailed look at a wide variety of transmission projectsunderway.

Gregory Boyce articulates five parts to the Peabody Planon page 19. Calling for CCS and coal-to-liquids projects globally, he points out that other fuels are welcome to meet theworld’s rising demand for energy.

World-Gen’s website has started hosting “Business Wire”,joining “PR Newswire” in publishing energy news on a dailybasis. World-Gen’s website traf fic is up over 50,000 hits YTD,on our way to a half a million annual visitors.

World-Gen is a media sponsor of Grid Week and SPI againthis year and will be exhibiting at PGI. Please visit the MediaKit at www.world-gen.com for advertising details.

PUBLISHER'S LETTERCONTINUED FROM PAGE 3


BY LYN CORUM, CLASS OF 2003

As this column is being written, feder-al and state agencies are focusing attentionon assuring the general public all operatingnuclear plants in the US are safe and willnot suffer the fate of the Fukushima Daiichinuclear power plant in Japan. In California,public attention is being focused on speed-ing up seismic examinations of the impactsnewly discovered faults that lie about a milefrom the San Onofre and Diablo CanyonNuclear Generating Stations will or will nothave.

However, less colorful issues are roil-ing the horizon that perhaps will have largerimpact on California’s power industry longterm: reduced reliability in SouthernCalifornia because new generation cannotget built, and disagreements over the needfor new transmission in the southeasterncorner of the state that could bring renew-able resources to load centers. Also, contro-versial rules to enforce AB 32, California’sGlobal Warming Solutions Act, will start toimpact the industry in the next two years.

Cap-and-trade of greenhouse gas emis-sions is not in trouble yet in spite of a recentruling by a California Superior Court judgein San Francisco and it is not raising muchof a fuss. Developed by the California AirResources Board as part of AB 32, the cap-and-trade rule is designed to reduce GHGemissions from power plants. It is sched-uled to go into effect next January. Thejudge said that CARB should have analyzedthe potential impacts of various alternativesto the cap-and-trade regulation.

The lawsuit was brought by severalenvironmental groups, includingCommunities for a Better Environment,which favor a carbon tax. However, betterknown environmental groups such as theNatural Resources Defense Council backthe cap-and-trade rule.

A CARB spokesman stated publiclythat the agency completed a comprehensiveanalysis of the alternatives in a 500-pageenvironmental analysis that fully addressesthe concerns the court raises.

CARB Chairwoman, Mary Nichols said theruling will have little impact because theplan is “not of any legal force.” She noted,“The cap-and-trade rule has already beenadopted and in fact is already in effect.”

SOUTHERN CALIFORNIA RELIABILITYRepresentatives from the California

Energy Commission, CARB, CaliforniaIndependent System Operator, theCalifornia Public Utilities Commission andthe State Water Resources Control Board,working as a task force, released a draftwork plan in early February. It stressed theneed for an assessment of the electrical reli-ability needs in the Los Angeles area overthe next 10 years.

A 2009 state law had mandated thereport, and the task force is to “recommendthe most effective and efficient means ofmeeting those reliability needs while at thesame time complying with state and federallaw.”

The state law was written in responseto a Los Angeles Superior Court decision in2008 that invalidated rules that the SouthCoast Air Quality Management District usedto award emissions reduction credits topower plant projects seeking constructionlicenses. The decision had the effect ofstopping virtually all new generation con-struction in the SCAQMD service area.The lawsuit had been filed by several envi-ronmental groups claiming, in part, the newpower projects requesting ERCs were notneeded and would not improve air quality.

At a public workshop in mid-February,the task force sought comments from stake-holders on the work plan which broughtinto stark reality the conflict betweencoastal power plant retirements in the LosAngeles area and the inability of replace-ment power projects to acquire ERCs so theprojects could be constructed.

Coastal power plants totaling morethan 7,600 MW will have to be retired orrepowered in the next five years to complywith a state mandate by the State WaterResources Control Board to replace theplants’ once-through cooling systems. TheCEC staff believes most of these plants willretire or repower rather than refit coolingtechnologies. But just 1,900 MW are in thedevelopment pipeline which could replacelost capacity. Replacement solutions are tobegin at the Los Angeles plants in 2012 andall are to be in compliance by October 1,2015.

CEC Commissioner Karen Douglassaid at the workshop, “The judge’s ques-tions are the same we all are asking – whyare the plants here in the South Coast?Once the need is identified, what do weneed to do about it?” Later she said, “Myhope is we will develop a system needsanalysis informed by a variety of technolo-gies.”

Three power plant projects with anameplate capacity of 1,910 MW have beenlicensed by the CEC and could be built in ornear the Los Angeles basin thereby allowingsome of the existing coastal plants that arerequired to eliminate once-through coolingto retire. Two have found ERCs and are orwill be under construction, but one has not.

At the time of the court ruling in 2008,there were nine power plant projects indevelopment in the region totaling 5,800MW. Six have been canceled or are dor-mant.

John White, executive director of theCenter for Energy Efficiency andRenewable Technologies, told the workshoppanel, “We will have to head toward phasingout combustion eventually. One of the chal-lenges we face is we need capacity to keepthe lights on and feed the economy. Wewant all the capacity, but not run it all thetime – only when we need it.” Incentives areneeded to minimize the number of hoursfossil-fueled plants are operated,” he said.

NEW TRANSMISSION NEEDED?A county further south in Southern

California – Imperial County where develop-ment of renewable resources, in particularsolar, is taking off – has a different problembut one just as serious. It could be the ener-gy breadbasket for California, if additionaltransmission were built. But that statementis questioned by some.

Cal-ISO says the area doesn’t needmore transmission beyond that which isplanned. But utility and industry stakehold-ers speaking at the Renewable EnergySummit held in mid-March in Winterhaven,California disagreed. The issue becomesimportant because utilities, both investor-owned and publicly-owned, must source 33%of their generation from renewableresources by 2020. This rule is no longer agovernor’s executive order. The legislaturepassed it at the end of March and GovernorJerry Brown is expected to sign it into law.

David Nahai, former general managerof the Los Angeles Department of Waterand Power and now a consultant and part-ner with Lewis, Brisbois, Bisgaard & Smithin Los Angeles, told attendees at the summitonce the utilities are legally required toreach their 33% goal by 2020, ImperialValley’s lack of transmission outside thecounty becomes a state-wide problem.

Nahai said if this legislation as writtenis signed into law by the Governor, it wouldrequire that 75% of the renewable powermust be generated in-state. “Unless weexplore the resources in Imperial Valley, wecannot get to the 75% of the 33% require-ment,” he said.

In an interview later, Nahai saidGovernor Brown needs to take leadershipover the transmission issue. There needs tobe a discussion about state investment, in

the form of bonds, or state help furnishingthe financing to build transmission lines.

Kevin Kelly, interim general managerof the Imperial Irrigation District, said “Wewill need a concerted effort to move powerout of the valley to the load centers on thecoast. The larger concern is that we cometogether as a region to [guarantee] thatImperial Valley has enough resources topower the entire state.” Kelly said the coun-ty is largely Hispanic with a 25% unemploy-ment rate and cannot make its ratepayerspay for the transmission improvementsneeded. Public-private partnerships are agood alternative, he said.

IID is already developing partner-ships. It recently completed an open seasonfor long-term wheeling contracts on itsnorthern line known as Path 42 which itplans to start upgrading this year. Winninggenerators will pay for all transmission stud-ies and system upgrades, and will be reim-bursed through transmission credits.

NEW DEVELOPMENTSOne of the projects in Southern

California that was stalled because it lackedemission reduction credits found a solution.Edison Mission Energy sold a 51% share inits 500-MW gas-fired peaking project to AESin December. The Walnut Creek project isto be located in the City of Industry about10 miles south of downtown Los Angeles

AES said it intends to retire two offour steam boiler units at its HuntingtonBeach power plant by 2013 and install twogas-fired turbines. This replacement wouldprovide the Walnut Creek project an offsetexemption from SCAQMD for 450 MW.

Edison Mission Energy already hassome banked credits and will have to makesome additional and expensive purchaseson the open market to make up the 50-MWdifference. Furthermore, Walnut Creekcapacity will make up for the forced retire-ment of AES’s units that currently useocean water for cooling.

The Walnut Creek project has a powerpurchase contract with Southern CaliforniaEdison to start delivering power in 2013.Construction needs to start this year. TheWalnut Creek project was certified by theCEC in 2008.

A new gas-fired project has been pro-posed for the San Diego area. Apex PowerGroup submitted an application at the CECin early February requesting a license forthe 300-MW simple-cycle Pio Pico EnergyCenter to be located in Otay Mesa near theborder. Apex and its partner, EnergyInvestors Funds, have already signed a 20-year power purchase tolling agreement withSan Diego Gas & Electric and must havethe plant operating by the end of May, 2014.SDG&E will have dispatch capability, thebetter to marry with renewable resourcesonce they are built.


CALIFORNIA NEWS

RELIABILITY, TRANSMISSION VEX INDUSTRY


BY ALISON ERNST

As Renewable Portfolio Standards(RPS) deadlines approach, utilities are labor-ing to add renewable generation. One draw-back of most renewable energy sources isthat they cannot replace baseload generationdue to their intermittency. Additionally, manyregions do not have the wind or solarresource to make those technologies reason-able solutions. Biomass, however, is a dis-patchable renewable resource, readily avail-able in many areas that lack other renewableresources.

Co-firing biomass in existing coalplants is a straightforward and quickly imple-mented solution. Specifically, wood pelletsare an ideal fuel for this purpose. As a densi-fied, low-moisture, uniform biomass fuel, pel-lets avoid many challenges associated withraw biomass. Wood pellets have many para-

meters comparable to coal making them acompatible co-firing fuel.

WOOD PELLET BACKGROUNDWood pellets are a refined and densi-

fied biomass fuel typically manufacturedfrom biomass residues created by woodproduct manufacturers and environmentallysustainable in-forest harvesting practices.Because of their uniform and compactnature, wood pellets lessen many of the chal-lenges associated with raw biomass, such asthe high cost of transportation due to lowerbulk densities and handling difficulties basedupon non-uniform characteristics.

In addition to being a fuel with a speci-fication, pellets burn very similarly to coaldue to their low moisture and friable nature.The chart below details the main physicaland chemical properties of wood pellets com-pared with coal commonly used inWisconsin.

In general, the properties of coal varyover a much larger range than those of woodpellets. This further highlights the benefitthat pellet consistency provides to co-firing.When introducing a new fuel to a system, itis important that fuel operates predictably inorder to minimize unforeseen boiler compli-cations.

TECHNOLOGICAL SUMMARYCo-firing is defined as the combustion

of two independent fuels in order to produceenergy. There are two main methods to co-fire: direct co-firing, where two fuels are pre-sent in the boiler simultaneously, and indi-

rect co-firing, which requires that each fuelbe combusted separately and combining theresultant energy streams. Because wood pel-lets and coal have many technical similari-ties, pellets are ideal for the less costlymethod of direct co-firing.

There are several options for direct co-firing based on the type of boiler, eachrequiring a different means of introducingthe co-fired fuel. The first type of direct co-fir-ing involves separate injection, whichrequires an independent feed and handlingsystem for the secondary fuel. Separate injec-tion co-firing may facilitate high feed ratesbetween 10-15%. Though minimal biomasscomparison testing has been done in theU.S., it is anticipated that even higher co-fir-ing rates can be reached with pellets becauseof their favorable technical parameters. Forinstance, the 600 MW Amer-9 power plant inthe Netherlands is currently powered suc-cessfully with 33% wood pellets and 67% coal.

A second, less expensive type of directco-firing is co-milling, which involves treatingthe biomass as coal throughout the handling,feeding, and burner systems. Because thebiomass is not isolated, co-milling is limitedto biomass of a very fine particle size, suchas sawdust. Additionally, co-milling is limitedto relatively small co-firing rates of 3% of totalenergy input for pulverized coal boilers, themost common utility boilers. Larger percent-ages cause excessive boiler efficiencydecreases. Generally with increased percent-ages of biomass, the heat rate increases,resulting in a less efficient boiler. The maincause of this is latent heat loss from moisture

and hydrogen combustion due to the bio-mass. This can result in higher back endtemperatures, which causes increased heatloss. However, this problem occurs mainlywith particularly wet biomass and is largelyabated with low-moisture wood pellets.

MARKET FOR CO-FIRING IN WISCONSINWisconsin has no coal reserves and

must import approximately 26 million tons ofcoal annually. There are over 30 coal plantsin Wisconsin totaling nearly 7,800 MW,including utility and industrial-scale plants.Wisconsin derives 61% of its electric genera-tion from coal , but its major utilities current-ly generate about 3.09% (We Energies) and6.19% (WPS) renewably . However,Wisconsin is one of the richest woody bio-mass-producing states, growing approximate-ly 16 million bone-dry tons annually, 68%more than it harvests. Based on the preva-lence of both coal plants and woody biomass,Wisconsin and the Great Lake States have asubstantial potential for co-firing.

Each coal-fired boiler in the state is acandidate for co-firing with wood pellets; infact, the majority of coal plants in Wisconsinutilize pulverized coal boilers, which are themost amenable for co-firing with pellets. Assuch, there is a sufficient potential market forco-firing in Wisconsin, modeled in the tablebelow, which shows the potential demand forall coal-fired boilers in Wisconsin. The levelsof biomass required can be met utilizing sus-tainable forestry practices.

COSTS & BENEFITS OF CO-FIRINGModifications are required to coal boil-

er systems to allow co-firing with pellets;however, they tend not to be technically chal-lenging nor cost-prohibitive.

The first addition required is a separatestorage unit for the wood pellets, which issized depending on delivery frequency andspace availability; generally, utilities prefercontinuous delivery minimizing on-site stor-age. This is also because pellets, unlike otherforms of biomass, must be stored in anenclosed and dry space. Moisture additioncauses pellets to lose their compact,

PERSPECTIVE

14

CO-FIRING WOOD PELLETS WITH COAL

(continued page 22)




PERSPECTIVE

AMEREN, EPRI DEVELOP

15

BY OMAR SIDDIQUI

Ameren and the Electric PowerResearch Institute (EPRI) have developed ananalytical framework to compare and prioritizeprojects on the basis of energy efficiency (EE)and carbon emissions reduction benefits andcosts across the spectrum of electric utilityoperations: generation efficiency; transmissionefficiency; distribution efficiency; and end-useefficiency at Ameren buildings and facilities.

This framework provides a basis to com-pare disparate EE/carbon projects on either alevelized cost per kWh saved, or per unit ofCO2 emissions avoided. The framework alsoincludes a repository of typical projects forEE/carbon improvements by utility opera-tional area, with descriptions and typicalimpacts that individual utilities can customizeand adapt to their particular circumstance.

Ameren has successfully applied thisframework to identify, rationalize, and priori-tize energy efficiency project opportunities forconsideration in its 2011 Integrated ResourcePlan (IRP) filing for the state of Missouri, forwhich the Missouri Public ServiceCommission has instructed utilities to evaluateenergy efficiency opportunities in its ownoperations.

The analytical framework establishedthrough the study allowed Ameren to com-pare and prioritize prospective energy efficien-cy projects on an economic "apples to apples"basis - and Ameren has continued to apply themethodology as a "living framework" for newpotential projects. For example, even after thecompletion of the study, Ameren applied theanalytical technique developed through thestudy to quantify the cost of amorphous trans-formers for distribution system efficiency.

FRAMEWORK BRINGS BENEFITSUtilities generally do not have a frame-

work in place to compare such projects bothwithin and especially across operational areason the basis of EE/emissions, whether theprojects' EE/emissions benefits are primary

or ancillary in nature. Challenges include howbest to attribute costs to projects and how toestimate and validate actual energy savings oremissions reductions. Without a frameworkand set of established evaluation metrics, deci-sions to prioritize capital- and operational- pro-jects are typically based on considerationsother than EE/emissions, despite the strategicimportance that these considerations have forthe utility and key stakeholders, including reg-ulatory bodies.

MOVING AHEAD WITH THE PROJECT PLANThe project approach with Ameren

brought together leaders from multiple utilityfunctional areas -- including corporate strategy,plant operations, transmission operations, dis-tribution operations, facilities management,and customer energy efficiency -- to discussthe potential for energy efficiency and emis-sions reduction from projects in their respec-tive areas. The research process establishedan accounting framework for attributing andquantifying the benefits and costs associatedwith the projects. For example, the frame-work established actionable guidelines forhow to attribute incremental costs betweenprojects whose primary purpose was EE/car-bon benefits versus projects primarily intend-ed for other purposes. The process also estab-lished metrics to compare and evaluate pro-jects on the basis of levelized cost. Finally, theprocess introduced and developed a reposito-ry of projects with estimated EE/carbonimpacts, inclusive of existing utility projectsand generic projects based on EPRI experi-ence with other utilities. The net result wasAmeren applied this framework to prioritizehigh-impact, low-cost projects that it couldincorporate into its internal corporate planningand communicate in its external resourceplanning filings with its regulators.

The goal was to establish a "livingframework" to evaluate existing and potentialprojects on the basis of potential EE/carbonbenefits and costs.Ameren was able to takethe results of this work and apply them in anumber of plans and regulatory filings. Forinstance, Ameren shared the results withorganizations such as the Missouri PublicService Commission, Missouri Office ofPublic Counsel, Missouri Department ofNatural Resources, and several industry inter-vener groups. This project has also paved theway for continued dialogue and learning with-in our organization.

“Our project with EPRI gave us the ana-lytical framework to compare prospectiveenergy efficiency projects across generation,transmission, distribution, and end-use con-sumption at our facilities on a comparable eco-nomic basis,” stated Matt Michels, managingsupervisor, Resource Planning at Ameren.“We continue to apply this as a "living frame-work" to evaluate and catalog potential pro-jects and use the results to communicate withkey stakeholders.”

BIOMASS POLICYBY ROGER D. STARK

As oil prices hover above $100 per bar-rel, a variety of policies are vectoring U.S.bioenergy markets, creating a mix of uncer-tainties and opportunities that vary dependingon federal policy determinations and thefinancial markets. The U.S. EPA has createduncertainty regarding the treatment of bio-mass as a carbon-neutral fuel under thePrevention of Significant Deterioration CleanAir Act permitting program, and its earlierdeterminations cast a cloud over whether bio-mass would qualify for favorable treatmentunder clean energy standards being consid-ered in Congress. Separately, the approachingsunset of some federal tax incentive and loanguarantee programs requires action by bio-mass sponsors. Collectively, these trends areputting a premium on strategic project devel-opment decisions.

Under most greenhouse gas (GHG)accounting systems, emissions of carbon diox-ide from biomass are not counted becausethey are equal to the emissions that wouldoccur due to the natural oxidation of biomass.In issuing initial PSD regulations and guid-ance, EPA inconsistently counted emissionsfrom biomass in determining whether thePSD permitting trigger applied, while alsosuggesting that biomass fuels would reduceGHG emissions. EPA has deferred final reso-lution for three years, during which biomasscarbon dioxide emissions are ignored for pur-poses of calculating whether PSD review andpermitting requirements have been triggered.Other recent EPA rulemakings suggest it con-siders biomass to be a low-carbon fuel.Despite the temporary exemption, EPA’s finalposition on carbon neutrality is likely to followother programs and most international andvoluntary standards, which favor the use ofsustainably managed biomass.

Project sponsors can take comfort inthe fact that PSD construction permits issuedfor biomass facilities during EPA’s temporaryexemption period, and that are not challengedon other grounds, will become final and bind-

ing in the ordinary course. Likewise, existingRegional Greenhouse Gas Initiative and pro-posed California regulations will favor sustain-ably managed biomass by ignoring its emis-sions for purposes of determining whetherbiomass facilities must purchase allowancesunder applicable cap and trade programs.Although EPA is developing additional GHGstandards for electric generating units underCAA Section 111, these standards also willlikely favor biomass by allowing states to cre-ate the standards and encouraging states tojoin existing cap-and-trade programs that favorbiomass. Biomass investments will continueto enjoy the benefi ts of state renewable port-folio standards, which generally allocaterenewable energy credits to electricity gener-ated from sustainably produced biomass.

From a tax policy standpoint, biomasscontinues to benefit from incentives underapplicable investment tax and production taxcredits, and the U.S. Treasury grant in lieu oftax credit program. Under current law, open-and closed-loop biomass projects qualify forthe production tax credit under Section 45 ofthe Internal Revenue Code, or the 30 percentinvestment tax credit (in lieu of the Section 45credit), under IRC Section 48, until the end of2013. Biomass projects also continue to be eli-gible for treasury cash grants in lieu of theSection 48 credit; provided that they file time-ly applications with treasury and comply withthe applicable commencement of constructionand in service deadlines (the latter deadlinebeing Dec. 31, 2013).

On the financing front, tax advantagedinvestments are making a comeback. Duringthe financial crisis, the rate of return for so-called tax equity peaked at levels in excess of15 percent shortly before tax equity marketscollapsed. Tax equity returns have sincereturned to precrisis ranges and there is aresurgence of investors ready to enter into taxcredit transactions. On the debt side, however,tax-exempt debt transactions have notreturned to precrisis levels.

The USDA loan guarantee program isviewed as user-friendly by some and offersthe potential for cofinancing guaranteed pro-ject debt with tax exempt debt.

It remains to be seen how two key fac-tors effect biomass. First, if the recent oilprice spike extends, considerations regardingenergy security and project economics willlikely favor biomass development. Second, theObama Administration’s Clean EnergyInitiative offers opportunities for biomass pro-ponents to affect the policy agenda and couldenhance the policy environment for biomassprojects. These developments present a pic-ture of discrete risks and substantial opportu-nities, and put a premium on thoughtful near-term development and investment choices forindividual projects and the industry.

Author: Roger Stark Partner, BallardSpahr LLP


PERSPECTIVE


In the 2008 Climate Change Act, theUK government stipulated a legally bind-ing 34 percent reduction in green housegas emissions by 2020 and a reduction byat least 80 per cent by 2050. To reach thatgoal, utility companies on British Islesclearly have to step up the production anddistribution of energy from renewableresources. Wind farms are slated to bemajor players when it comes to makingthat happen.

Unfortunately, power generators uti-lizing renewable energy resources areoften located in remote rural parts of thecountry, where the electricity distributioninfrastructure is limited. As a result, net-work congestion frequently becomes anissue as distributed generation is connect-ed. Currently, distribution network opera-tors in the UK accommodate the prolifera-tion of embedded generators throughgenerator constraints or network rein-forcement; still, the lack of network capac-ity continues to present economic barri-ers, cause consent delays, and generatescapacity constraints for distributed gener-ation wishing to connect.

The good news is that based on con-ventional plant ratings, the current con-nection arrangements can be conserva-tive in their approach, and a moreinformed approach may be able to unlocksignificant extra operating headroomwithin the existing power system. Thiswas demonstrated by a groundbreakinggovernment-backed study led by ParsonsBrinckerhoff (PB) in consortium withprotection and control equipment manu-facturer AREVA T&D, DurhamUniversity, IT company Imass, andScottishPower EnergyNetworks. Thebasic premise of the research project wasthat the wind needed to generate powerfrom wind farms also has a cooling effecton power system components. As aresult, the possibility exists to accommo-date higher power flows in network areaswith high penetration of wind generationbefore the thermal limit of power systemcomponents is reached.

ROOM TO BLOWThe consortium focused its research

on a test network, utilizing a section ofScottishPower’s 132kV network, and alsoincluded a 33kV underground cable con-necting to an offshore wind farm.

The research determined the ther-mal state of key power system compo-nents by using physical measurements(wind speed, wind direction, ambient tem-perature, solar gain, as well as power sys-tem current and voltage measurements)and thermal state estimation tech-niques. This data formed the basis for thereal-time ratings calculation, which wouldthen be used to determine set-points forthe generators under the device’s sphereof control, while maintaining safe andsecure operation of the network throughconstraint of generator power outputs attimes of network power flow congestion.

The prototype real-time rating basedcontroller installed on part of theScottishPower 132 kV network in NorthWales came online in January 2010. Sincethen, electrical, thermal, and meteorologi-cal data from the trial has been collectedby Alstom Grid and processed using thethermal state estimation and generatorcontrol system software developed espe-cially for this project. The controller cal-culates real-time ratings of overhead lines,underground cables and power transform-ers to control an existing 60 MW offshorewind farm in open-loop simulation mode(i.e. the wind farm is not actually con-strained by the control system, but data iscollected and analyzed offline).

Initial results suggest that theenhanced knowledge of the network com-ponent’s thermal state — provided byreal-time ratings — has the potential tounlock latent power flow capacities. Keyfindings have shown that headroom of 70to 150 percent, 0 to 6 percent and 6 to 10percent beyond the static rating is avail-able for overhead lines, electric cables,and power transformers respectively.This means that when integrated with adistributed generation output control sys-tem, greater installed generation capaci-ties can be accommodated within the dis-tribution network — in the case of windfarms up to 150 percent — and significantnetwork reinforcement can be avoided!

REAL TIME THERMAL RATINGSOverhead real-time thermal ratings

can be determined through a variety oftechniques, including sag-based, tension-based techniques, current-rating based,conductor-temperature-based, and cur-rent-rating based approaches. The cur-rent-rating based technique used in thisstudy involves indirect monitoring of theoverhead lines through measurements orestimation of environmental conditions(such as weather) local to the overhead

line and thus does not require system out-ages for installation or maintenance.

To assess overhead line real-timethermal ratings for this project, the teamdeveloped component thermal modelsbased on the IEC Standard TR 1597Overhead line conductors – calculationmethods for stranded bare conductors(1995), using refinements to account forwind direction influences on the rating ofoverhead lines. Preference was given tosteady-state models over dynamic modelssince this would provide the maximumallowable rating for long term power sys-tem operation.

The thermal model for overheadlines is based on the thermal equilibriumbetween the heat generated in the con-ductor due to the Joule effect (I2R) andthe heat dissipated into the local environ-ment by the conductor through convec-tive and radiative heat transfer mecha-nisms. The heating of the conductorcaused by solar radiation is particularlyimportant in low wind speed conditions.The rating of overhead line conductors isdependent on static conductor properties(such as electrical resistance, conductordiameter and maximum operating temper-ature) and also variable environmentalconditions such as wind speed, winddirection, ambient temperature, and solarradiation.

The variable environmental condi-tions — local to overhead line conductors— are estimated in real-time from meteo-rological stations. To reduce the risk of alocalized hotspot when making an assess-ment of the real-time thermal rating foran overhead line, the conductor can bedivided into sections to represent the vari-ation of environmental parameters suchas line orientation and ground roughness(i.e., shielding from vegetation). The sec-tion of the overhead line with the lowestrating represents the weakest point of theoverhead line and can therefore be adopt-ed as the real-time thermal rating for theentire circuit.

WIDENING THE FIELDThe promising results of the pilot

program prompted ScottishPower toexplore the potential of this technology ina more ready-to-use approach and over awider area of its network. A new consor-tium of Parsons Brinckerhoff,ScottishPower, GE (the supplier ofScottishPower’s network managementsystem, which is used by the controlroom operators to manage the networkon a day-to-day basis) and Nortech (asmart telecommunications equipmentprovider) was formed in June 2010 topush the project from the pilot stage towide-scale deployment, enhance the uti-lization of the network, and facilitate fur-ther renewable generation

connections. Support for this next phase,which will run from 2010 to 2013, is pro-vided by a new funding mechanism underOfgem’s (Office of the Gas and ElectricityMarkets in the UK) low-carbon networksfunding initiative.

An objective of this phase of the pro-ject is to implement a real-time thermalrating system to give the ScottishPowercontrol room operators visibility of theactual thermal operating status of theirnetwork. This builds on the research anddevelopment phase of the work (the trialnetwork) to deliver the first active distrib-ution network operator-based implemen-tation of this technology across a widearea of the network.

Implementation will involve theinstallation of weather stations at numer-ous grid substations across North Wales,a dual wired network and GPRS (wirelessdata) telecommunications interface, a‘host’ network management system withlinks to the control room, and direct over-head line conductor temperature monitor-ing (for validation purposes).

The weather station data is harvest-ed by a real-time ratings module in thenetwork management system, developedto run the real-time rating algorithms andto be compatible with ScottishPower’scontrol room. The weather station datawill be analyzed along with the data fromthe direct conductor monitoring equip-ment and power system electrical data inorder to calculate and display real-timethermal ratings, and overhead line con-ductor operating temperatures, on agraphical user interface within the controlroom.

ACTIVE NETWORK MANAGEMENTIf the implementation of the real-

time thermal rating system proves suc-cessful, and once confidence has built inthe technology adoption, the plan is tofeed the system into the ‘active networkmanagement’ phase of project, where areal-time thermal rating system will beoperated in closed loop to facilitate andmanage the connection of 200 MW ofplanned wind generation in NorthWales. The system will also control andmanage power flows in ScottishPower’s132 kV network, which spans the NorthWelsh coast in order to prevent overloadsresulting from the connection of this gen-eration. This phase of the project is slatedto run from 2012 to 2015.

Clearly, the ability to lift currentrestrictions on distributed energy genera-tion safely and efficiently will have a sig-nificant impact on the UK’s ability to meetits long-term greenhouse gas emissionreduction goals and has broad implica-tions for the further development of windpower worldwide.

EXTENDING NETWORK CAPACITIESBY MARC BARTLETT



PERSPECTIVE

17

INDIAN POINT’S LICENSE RENEWALBY JERRY KREMER

Since the devastating natural disastersthat ravaged Japan and led to the issues thatarose at Fukushima Daiichi Nuclear PowerPlant, there have been questions about thesafety of nuclear plants in the United States.In my home state of New York, those ques-tions have led to intense interest in the safetyand security of the Indian Point EnergyCenter, located 35 miles north of Manhattan.

In light of these new developments,people throughout New York and across thenation should rightfully demand assurancethat they are safe. These concerns shouldnot be disregarded, nor taken lightly. Theyshould also lead to an open debate on thesafety of our energy production system.

As the nuclear industry and regulatorsmove forward with lessons learned fromJapan, we must not jump to conclusions orengage in knee-jerk reactions. Today,nuclear plants provide about 20 percent ofour nation’s electricity and 70 percent of ournation’s emissions-free electricity. Thesefacilities also help bolster U.S. energy inde-pendence. This is one of the main reasonswhy President Obama and U.S. EnergySecretary Steven Chu have vociferouslydefended the use of nuclear energy as part ofa progressive national energy strategydesigned to create jobs and fight the harmfuleffects of global climate change.

Safety has always been the top prioritywhich is why the Nuclear RegulatoryCommission (NRC) is conducting extensivetests on every eventuality - and stationingfederal safety inspectors at each nuclear

power plant in the nation. Indian Point is nodifferent. It is fair to state that Indian Pointis the most scrutinized nuclear power facilityin the entire nation.

Throughout the course of the post-Fukushima introspection and for numerousyears prior, no other nuclear facility in theUnited States has been subject to the relent-less barrage of media scrutiny, with IndianPoint being featured in both national andinternational media reports. If Indian Pointwas vulnerable, doing something wrong ornot operating in the public interest, it wouldbe certainly known, reported and criticizedinstantaneously.

During each of the last six years, theNRC has awarded Indian Point the highestpossible safety ranking for nuclear powerplants – a “green rating”. The Chairman ofthe NRC recently stood outside Indian Point,flanked by two long-standing opponents ofthe facility and again unequivocally reaf-firmed the fact that Indian Point is safe.Candidly, it’s no wonder then that IndianPoint’s superior safety record and strongsafety culture has spurred federal and inde-pendent regulators alike to recommend thatIndian Point’s license be renewed for anothertwenty years.

Presently, Indian Point supplies up to12 percent of the power for the entire Stateof New York, up to a quarter of the powerconsumed by downstate, and up to a third ofthe power consumed by New York City.According to the New York IndependentSystem Operator, the operator of New York’s

electrical grid, "reliability violations … willoccur if the Indian Point plant were to beretired at the latter of the current licenseexpiration dates" without additional replace-ment capacity. They have also stated that"voltage performance … would be degrad-ed." The fact remains that without a powerplant siting law on the books in New York,there is no way to make up for more than2,000 megawatts of baseload energy withouta serious impact on system reliability.

A 2006 study by the National Academyof Sciences showed that four to five new nat-ural gas plants would have to be built toreplace Indian Point’s clean energy. Thisoption would significantly increase carbondioxide and other emissions, increase NewYork’s reliability on fossil fuels and ultimatelylead to higher electric rates for New Yorkbusinesses and homeowners.

Locating new plants is a moot pointwithout a power plant siting law on the booksin New York State, but it also begs the ques-tion: in whose backyard are we going to site,build and operate these facilities?Considering the level of opposition winddevelopers have faced around New YorkState, I cannot imagine that siting andlaunching a fossil fuel-burning power plant inthe leafy northern suburbs of New York Citywill be an easier challenge.

But aside from the positive impact ofIndian Point’s safe operations on both theenvironment and system reliability, it is alsoimportant to note that the facility serves as acritical economic engine for the downstate

region and the rest of New York State. A2008 study by the Westchester BusinessAlliance found that closing Indian Pointwould result in the loss of nearly 11,000 jobs,the loss of more than $2 billion in annualwages and more than $5 billion in annualeconomic activity. The zealots seeking toclose this plant at all costs are aiming to doso at a time when jobs are difficult to comeby and economies are struggling to provideeven the most basic of services.

After catastrophic events of the magni-tude of those in Japan, questions aboutnuclear energy are expected and welcomed.We should have an open and transparent dis-cussion about energy and safety, but itshould be fair and based on facts, not on dataskewed by those with a singular goal of clos-ing the plant.

The facts speak for themselves. IndianPoint is a safe, cleanly-operating facilityresponsible for creating jobs, powering NewYork’s infrastructure and protecting NewYork’s quality-of-life. It deserves to be re-licensed based on the facts and the merits.

About the authorArthur “Jerry” Kremer is the

Chairman of the New York AffordableReliable Electricity Alliance (New YorkAREA). A 23-year veteran of the New YorkState Assembly, he served as Chairman ofthe prestigious Ways and Means Committee.Mr. Kremer is also a principal author of thestate’s now expired power plant siting law.

DRIVING INNOVATION TO MARKETBY DR. NICK RIGAS

NORTH CHARLESTON, S.C. —New technology requires advanced test-ing capability. By next year, one of theworld’s most important wind energy test-ing sites will open in South Carolina.

In November 2009, the U.S.Department of Energy’s Office of EnergyEfficiency and Renewable Energy(EERE) awarded Clemson University thelargest grant in the university’s historyto build and operate a facility to test next-generation wind turbine drivetrain tech-nology.

The facility will be like no other,with testing capacity three-times greaterthan any other currently in operation.

Weighing more than a Boeing 787Dreamliner jet filled with fuel, passen-gers and luggage, specifications for thefacility’s 15 megawatts test rig are solarge many of its components have neverbefore been designed.

The facility will be capable of full-scale highly accelerated testing of

advanced drivetrain systems for wind tur-bines in two testing areas — one up to7.5 megawatts and the other up to 15megawatts.

7.5 MW TEST RIG WITH A STATIC NON-TORQUE LOAD APPLICATOR, UPGRADEABLE TO DYNAMIC IN THE FUTURE• Power (electrical closed loop):

8,700 kW• Test power: 7,500 kW• Nominal test torque: 6,000 kNm• Nacelle, drivetrain or gearbox

testing for geared or direct drive units

• Capable of handling test specimens up to 8.5 meters in diameter

15 MW TEST RIG WITH DYNAMIC NON-TORQUE LOAD APPLICATOR• Power (electrical closed Loop):

17,400 kW

• Test power: 15,700 kW• Nominal test torque: 15,000 kNm• Nacelle, drivetrain or gearbox testing

for geared or direct drive units• Capable of handling test specimens

up to 13 metersThe $98 million testing facility,

which was funded by a $45 millionEnergy Department grant and matchedby $53 million of public and privatefunds, is scheduled for completion by theend of 2012.

The grant’s objective is to acceler-ate development of new technology intothe wind market to reduce the cost ofenergy. The facility’s mission is to pro-vide high value, high quality and cost-competitive testing services to industry,and to establish long-term workforcedevelopment, research and educationpartnerships.

The testing facility, located at theClemson University Restoration Instituteat the former Charleston Naval Complex,

will revitalize an 82,264-square-foot for-mer Navy warehouse adjacent to existingrail and ship-handling infrastructure.

The building was built in 1942,modified in 1961, expanded in 1985 anddecommissioned in 1995. It served asthe main warehouse for the Navy’s stor-age of non-hazardous materials.

An existing brownfield site will betransformed into a world-class testingand research center over the next year.The wind turbine testing facility, alongwith Clemson’s neighboring WarrenLasch Conservation Center, will serve asthe cornerstones of a planned InnovationCampus at the Restoration Institute,focusing on energy systems andadvanced materials research and devel-opment.

These unique facilities will be com-plimented by a Graduate Engineering Center, where students and researcherswill collaborate with private partners.



CAMBRIDGE, Mass. -- In an effort tocombat soaring fuel prices and cut green-house gas emissions, the aviation industryis racing toward the use of biofuels. In2008, Virgin Atlantic became the first com-mercial airline to fly a plane on a blend ofbiofuel and petroleum. Since then, Air NewZealand, Qatar Airways and ContinentalAirlines, among others, have flown biofueltest flights, and Lufthansa is racing to bethe first carrier to run daily flights on a bio-fuel blend.

However, researchers at MIT say theindustry may want to make sure it hasexamined biofuels’ complete carbon foot-print before making an all-out push. Theysay that when a biofuel’s origins are fac-tored in — for example, taking into accountwhether the fuel is made from palm oilgrown in a clear-cut rainforest — conven-tional fossil fuels may sometimes be the“greener” choice.

“What we found was that technolo-gies that look very promising could alsoresult in high emissions, if done improper-ly,” says James Hileman, principal researchengineer in the Department of Aeronauticsand Astronautics, who has published theresults of a study conducted with MIT grad-uate students Russell Stratton and HsinMin Wong in the online version of the jour-nal Environmental Science and Technology.“You can’t simply say a biofuel is good orbad — it depends on how it’s produced andprocessed, and that’s part of the debate thathasn’t been brought forward.”

Hileman and his team performed alife-cycle analysis of 14 fuel sources, includ-ing conventional petroleum-based jet fueland “drop-in” biofuels: alternatives that candirectly replace conventional fuels with lit-tle or no change to existing infrastructureor vehicles. In a previous report for theFederal Aviation Administration’sPartnership for Air Transportation Noiseand Emissions Reduction, they calculatedthe emissions throughout the life cycle of abiofuel, “from well to wake” — from acquir-ing the biomass to transporting it to con-verting it to fuel, as well as its combustion.

“All those processes require energy,”Hileman says, “and that ends up in therelease of carbon dioxide.”

In the current Environmental Scienceand Technology paper, Hileman consideredthe entire biofuel life cycle of diesel enginefuel compared with jet fuel, and found thatchanging key parameters can dramaticallychange the total greenhouse gas emissionsfrom a given biofuel.

In particular, the team found thatemissions varied widely depending on thetype of land used to grow biofuel compo-

nents such as soy, palm and rapeseed. Forexample, Hileman and his team calculatedthat biofuels derived from palm oil emitted55 times more carbon dioxide if the palmoil came from a plantation located in a con-verted rainforest rather than a previouslycleared area. Depending on the type of landused, biofuels could ultimately emit 10times more carbon dioxide than conven-tional fuel.

“Severe cases of land-use changecould make coal-to-liquid fuels look green,”says Hileman, noting that by conventionalstandards, “coal-to-liquid is not a greenoption.”

Hileman says the airline industryneeds to account for such scenarios whenthinking about how to scale up biofuel pro-duction. The problem, he says, is not somuch the technology to convert biofuels:Companies like Choren and Rentech havesuccessfully built small-scale biofuel pro-duction facilities and are looking to expandin the near future. Rather, Hileman says thechallenge is in allocating large swaths ofland to cultivate enough biomass, in a sus-tainable fashion, to feed the growingdemand for biofuels.

He says one solution to the land-useproblem may be to explore crops like algaeand salicornia that don’t require deforesta-tion or fertile soil to grow. Scientists areexploring these as a fuel source, particular-ly since they also do not require freshwater.

Total emissions from biofuel produc-tion may also be mitigated by a biofuel’sbyproducts. For example, the process ofconverting jatropha to biofuel also yieldssolid biomass: For every kilogram of jat-ropha oil produced, 0.8 kilograms of meal,1.1 kilograms of shells and 1.7 kilograms ofhusks are created. These co-products couldbe used to produce electricity, for animalfeed or as fertilizer. Hileman says that thisis a great example of how co-products canhave a large impact on the carbon dioxideemissions of a fuel.

Hileman says his analysis is one lensthrough which policymakers can view bio-fuel production. In making decisions onhow to build infrastructure and resourcesto support a larger biofuel economy, hesays researchers also need to look at thebiofuel life cycle in terms of cost and yield.

“We need to have fuels that can bemade at an economical price, and at largequantity,” Hileman says. “Greenhousegases [are] just part of the equation, andthere’s a lot of interesting work going on inthis field.”

The study is the culmination of fouryears of research.

PERSPECTIVE


FOSSIL FUELS VS. BIOFUELSBY JENNIFER CHU, MIT

A new Edison Electric Institute (EEI)report—Transmission Projects: At AGlance, March 2011—projects thatAmerica’s electric companies will investapproximately $61 billion (nominal dollars)in transmission infrastructure improve-ments by 2021. This spending estimate,derived from a sampling of transmissionprojects now underway or planned, will beon top of the nearly $55 billion (2009 dol-lars) that EEI members invested toimprove the nation’s grid between 2001 to2009.

Investment is growing to maintain andimprove reliability. It also is increasing tobuild connections for new generation. Andseveral landmark developments in federaland state policies affecting transmissioninfrastructure, including the Energy PolicyAct of 2005, state renewable portfolio stan-dards, and federal initiatives promotingtransmission Smart Grid developmentunder the American Recovery andReinvestment Act, are helping to fuel thegrowing investment as well.

The new EEI report, although offeringa detailed look at a wide variety of transmis-sion projects underway, does not provide acomprehensive compilation of every projectbeing undertaken by its members. Of allprojects reviewed in this year’s report, sev-eral specific sub-categories are discussed ingreater detail: Interstate projects, projectsthat support the integration of renewableenergy resources, projects required formaintaining system reliability, and projectsthat use digital technology to improve relia-bility, security, and efficiency (both eco-nomic and energy) of the electric system.

A minimum project investment thresh-old of $50 million for transmission systemprojects was applied to the selection of rep-resentative projects contained in this

report. However, a lower threshold of $20million was applied for transmission sup-porting the integration of renewableresources, and a $10 million investmentthreshold was applied to any Smart Gridprojects that an EEI member selected tohighlight. The report focuses on projectscompleted in 2010 through 2021 (this rep-resents a 1 year back looking and 10 yearfor ward looking window).

The large interstate transmission pro-jects highlighted in this report span morethan one state and involve numerous enti-ties at the federal, state, and local levels. Assuch, these interstate projects face signifi-cant challenges for siting, permitting, costallocation and cost recovery. The interstateprojects reviewed in the report account forapproximately 8,300 miles of transmissionrepresenting a $41.1 billion (nominal dol-lars) investment.

Projects addressing the integration ofrenewable resources, and where needed, toaccommodate the expected off-peak pro-duction, represent the addition or upgradeof 11,400 miles of transmission with anaccompanying transmission investmentcost of approximately $39.5 billion (nominaldollars).

Projects highlighted in this reportwhose initial driver has been identified aspredominantly needed to meet NERCReliability Standards and/or LocalTransmission Owner reliability criteriaaccount for the addition or upgrade of 3,600miles of transmission with an accompany-ing transmission investment cost of approx-imately $15.5 billion (nominal dollars).

Finally, EEI’s member companies arecontinuing their efforts to modernize thetransmission system through individualfunding and the use of Smart GridInvestment Grants for certain projectsselected by the U.S. Department of Energy.These Smart Grid projects augment exist-ing EEI member grid modernizationefforts.

In reviewing the projects detailed inthe EEI report, it is important to rememberthat although transmission projects may bedesigned for a particular primary purpose,they often provide additional benefits—some are needed to maintain high levels ofreliability that customers expect, and othersmay deliver a number of benefits, such ascongestion relief, reduced system losses,integration of resources, or the deploymentof advanced monitoring systems toenhance situational awareness.

The EEI report also offers informationon several key planning initiatives that areunderway.

EEI REPORTSBY JAMES P. FAMA


Coal is the fastest growing fuel inthe world and has been for the lastdecade. Coal use has grown twice as fastas natural gas and four times as fast asnuclear and oil during this time. And IEAprojects that the growth in coal for elec-tricity generation will exceed the growthof any other fuel by more than double inthe next 10 years. In fact, incrementalcoal for generation is projected to surpassthat of gas, oil, nuclear, geothermal andsolar – combined.

In short, coal is energy that sus-tains… It is the global electricity “go-to”fuel and the catalyst for economic growthand people living longer and better.

FIVE POINTS TO ILLUSTATE THIS THEMENumber One: Energy is as basic

as food, shelter, clothing or oxygen.Energy access is a human right and arapidly rising need. The World ResourcesInstitute says it clearly: Every 10-foldincrease in energy access brings about a10 year boost in human life expectancy.

Then, consider the needs. Some 3.6billion people in the world – half theglobe’s population – lack adequate energyaccess, and 1.5 billion have none at all.Another 2 billion will require power asthe global population grows over the nexttwo decades. And the World Bank esti-mates that we lose more than 1.5 millionpeople to the effects of energy povertyeach year.

Creating energy access should bejob one for everyone.

Point Number Two: Energyaccess also means reasonable costs andreliability.

In 1954, U.S. News stated that solarcould provide more power than all theworld's coal, oil and uranium. Yet genera-

tions later, solar fuels less than 1% ofpower. Windmills in England stoppedturning this winter and then had to beheated, producing negative electricity.

Nuclear power by now was sup-posed to be too cheap to meter. Naturalgas has a legacy of volatile prices. And weare told we are not at peak oil… yet withglobal demand still not fully recoveredfrom recession, we are back to $100prices.

These fuels are all needed. But wecannot look at alternatives with a blindeye toward costs, which translate directlyinto access.

This was brought home after myWorld Energy Congress speech last fall,when a World Bank Africa representativecame up to me and lamented those in thedeveloped world who would advance onlyrenewable power for Africa. That doesn’twork, he said. “We need large, baseloadpower. We need coal.”

Costs are equally important indeveloped economies. In the U.S., thedelivered cost of coal averages just onehalf to one sixth that of natural gas.Expensive energy chokes off economicrecovery, punishes family budgets, sendsfactories overseas and determines win-ners and losers in global competition.

Access means reliability. This verystate just found itself in the surprisingposition of importing power from Mexicodue to a host of issues including lack ofbaseload coal plants and challenges withwind, gas and transmission.

Point Number Three:We are inthe early stages of global hyper-growth inenergy demand. It is driven by largeemerging nations such as China, Indiaand Indonesia industrializing and urbaniz-ing. We’re seeing U.S.-sized populationsmoving to cities… and buying cars andappliances which need steel to make andpower to run. Electricity use and intensityare both increasing, creating an upwarddemand multiplier.

Consider this fact: If China andIndia alone used the per-capita energy ofEurope, the world would use twice asmuch coal – some 7 billion metric tonsper year more than it does today.

By 2050, global GDP is expected toincrease 255%. Electricity generation willbe up some 140%. The world populationwill reach 9 billion. And 6.8 billion people– 70% of the world’s population – will livein cities.

China has just announced it plans tobuild 45 airports in the next five years. Itis building tens of thousands of kilome-

ters of conventional and high-speed railand putting down 1,000 kilometers ofexpressway every year. China represents30, 40 or 50% of the growth in many of theworld’s natural resources.

It has passed Japan as the secondlargest global economy, and has exceed-ed the U.S. in car purchases.

It is likely to do the same in mostmajor appliances, electronic devices andeconomic measures over time.

India is close on China’s heels butwe have yet to see the full impact of pre-dictions of major energy growth and theworld’s largest emerging middle class.And Indonesia has another 300 millionpeople with rapidly advancing economicgains.

The extraordinary growth in energydemand and limits of alternative energygrowth… create a widening gap.

Point Number Four: Coal is theonly sustainable fuel, at scale, that canmeet the world’s growing electricityneeds. Coal is here to stay.

Coal is powering both the largestand best global economies, and this is nocoincidence. The correlation betweencoal-fueled electricity use and economicgrowth is near-perfect.

The world has trillions of tons ofcoal, which make up 60% of our globalenergy resources. And we will use themall. About 90 percent of coal’s 4 billiontons of demand growth by 2030 will comefrom emerging Asia. Coal-fueled genera-tion is expected to grow 2.5 times inChina and 3.5 times in India by 2030.Every four years, China’s coal demandgrowth equals an entire U.S. of totaldemand.

With other fuels either centered inpolitical flashpoints or too tiny to make adifference, we are just scratching the sur-face on global coal use. Coal is widely dis-persed, broadly available, easily trans-ported, energy-dense and very afford-able.

Point Number Five: Advancedcoal generation is vital to both our eco-nomic AND environmental goals.

The U.S. generation buildout haseased, but the world isn’t waiting. Thereare some 430 gigawatts of supercriticaland ultrasupercritical power plants inoperation or under construction world-wide. China leads this effort, represent-ing more than one-third of the world’sadvanced coal fleet.

Replacing the world’s older coalplants with supercritical generation would

drive major economic growth and enor-mous reductions in carbon dioxide with-out waiting for CCS. And all these plantswould be CCS ready when the technolo-gy is commercially deployable.

The benefits are enormous: Wecould realize $4.3 trillion in economicgains and 21 million new constructionjobs just during the construction cycle,according to a study by ManagementInformation Services. And we’d avoidCO2 emissions equal to more than theentire U.S. passenger car fleet.

In the United States alone, replacingolder coal plants with advanced genera-tion could create $1.2 trillion in economicbenefits and 6 million jobs during con-struction. Some 440 million metric tons ofCO2 would be avoided.

THE PEABODY PLAN - FIVE ACTIONSFirst: Work to eliminate energy

poverty by ensuring that at least half ofnew generation is fueled by coal;

Second: Replace older traditionalcoal plants with advanced coal technolo-gies;

Third: Develop at least 100 majorCCS projects around the world within 10years;

Fourth: Deploy significant coal-to-gas, coal-to-chemicals and coal-to-liquidsprojects globally in the next decade; and

Finally: Commercialize next genera-tion clean coal technologies to achievenear-zero emissions.

In summary, the scope of our ener-gy demand is enormous.

So let’s get on with job one: Liftingbillions from energy poverty and expand-ing major energy access with meaningfulsources of supply.

We also need to realize that otherfuels are not our foe, that we all havemuch to gain by meeting the world’srapidly rising demand for energy ratherthan turning our swords on one another.We will ultimately be measured not byour market share of fuels but for howwell we helped a growing world livelonger and better.

In doing so, I also urge you to holdyour head up about the vital work that weare engaged in. Energy supply is not anill to suppress or an evil to apologize for.What energy is: A human right to satisfy,a noble profession that fills a vital basicneed, and a fundamental service to cele-brate.

Excerpted from Keynote Remarksat CERA WEEK 2011.


PERSPECTIVE

THE PEABODY PLANGREGORY H. BOYCE, PEABODY ENERGY CHAIRMAN AND CHIEF EXECUTIVE OFFICER


PERSPECTIVE


BEYOND DRIVETRAINS - THE SIMULATED GRID

Challenges in testing, certificationand delivering to market are not limited to

the wind-power industry, but cross all aspects of the energy spectrum.

The scope of the drivetrain testingfacility includes capability for Low VoltageRide Through Testing (LVRT) and ZeroVoltage Ride Through Testing (ZVRT) toensure the response of wind turbine gen-erators to transmission system faults.

In leveraging the extensive electricalinfrastructure of the wind turbine drive-train testing facility, the InnovationCampus also will house a one-of-a-kind 15

megawatt Hardware-in-the-Loop (HIL)Grid Simulator.

Central to updating the nation’saging transmission grid — essential toU.S. energy security and independence —is development of new smart-grid andenergy storage technologies that integrateemerging clean energy technology withthe grid.

A powerful grid simulator that mim-ics real-world circumstances — such aswide-area power disruption from natural

disasters, cascading accidents, and cyberor physical attacks without real-world risks— is needed.

Such a facility will test and validatemodels, advance smart-grid technology,energy storage and converters, and inte-grate renewable energy resources moreefficiently into the transmission and distri-bution infrastructure.

Additionally, researchers can investi-gate unique aspects of grid and cybersecurity, wireless sensors, high currentcalibration and energy storage.

The Simulated Grid will not only testnext-generation wind turbines for gridcompatibility, but serve as a platform fortesting and certifying new technology thatsupports the country’s smart grid andrenewable energy goals.

While there are numerous locationsthat can perform grid simulation, the com-bination of actual electrical hardware andgrid simulation with Hardware-in-the-Loopcapability is rare.

Having HIL capability will allow test-ing of present and new high-voltage tech-nology and generate models to duplicateactual performance.

Clemson’s proposed 15 MW HILGrid Simulation Laboratory will becomethe cornerstone for a Center of Excellencein grid compatibility testing, modeling andcertification.

The center will facilitate collabora-tion among academic departments and pri-vate partners to build system-level exper-tise, drawing from faculty across the uni-versity, and other research institutions.

These cross-disciplinary teams willhave the capacity to tackle major initiatives— such as grid integration — that no sin-gle department or entity can address.

Like the drivetrain testing facility, theHIL center will operate under a “sharedfacility” model. This allows innovators toschedule time at the facility to completetheir studies or certification, while work-ing with students and universityresearchers.

Traditionally, wind turbine manufac-turers have tested in the field, which iscostly and time consuming.

These facilities will allow controlledtesting under a variety of conditions fornext-generation technologies, allowingmanufacturers the flexibility to push theboundaries and drive the industry for-ward.

Dr. Nick Rigas is senior scientist atthe Clemson University RestorationInstitute and director of the wind turbinedrivetrain testing facility.

Peter Hull is director of communica-tions and marketing for ClemsonUniversity economic development, con-tributed to this article.

On the WebClemson University Restoration

Institute: http://www.clemson.edu/restoration

DRIVING INNOVATIONTO MARKETCONTINUED FROM PAGE 17



PERSPECTIVE

The FLEXEfficiency 50 plant creates animmense growth opportunity in a newsegment for our gas turbine technologyand is in lock-step with our commit-ment to build a cleaner energy future,”said Paul Browning.

GE invested over $500 million inresearch and development to deliver the510 megawatt plant offering fuel efficiencygreater than 61 percent with a 10 percentsmaller footprint. It will reduce annual CO²emissions by more than 12,700 metric tonsand also avoids 10 metric tons of NOXannually. Under typical operating condi-tions of 4,500 hours, cost savings of $2.6million could be realized. It will ramp-up ata rate of more than 50 megawatts a minute,doubling present day rates and is inresponse to fluctuations in wind andsolar power.

GE announced a $170 millioninvestment in a first-of-its-kind fullspeed, full load test facility inGreenville, SC that will provide factoryvalidation of its new technology.

“With global energy demandexpected to double by 2030 and elec-tricity generation accounting for 40 per-cent of greenhouse gas emissions, utili-ties and government bodies are takinga hard look at how to produce powermore efficiently,” said Ricardo Cordoba,president of GE Energy for WesternEurope and North Africa. “This innova-tion can have a dramatic effect on CO²emissions and offers a nimble, efficientand cost-effective way for us to helpE.U. countries in pursuit of 20-20-20energy goals.”

The power plant will be located inKaraman, Turkey and scheduled toenter commercial operation in 2015.The engineering, procurement and con-struction services will be provided byGama Power Systems Engineering andContracting.

Dr. Celal Metin said: “At MetCapEnergy, we believe our projects mustsimultaneously meet the need forincreased energy, environmentalresponsibility and economic growth,while preserving precious waterresources. This power plant will havezero liquid discharge, low emissionsand a rapid-response. It accomplishesthis using an integrated controls sys-tem that provides single-button start forall of the elements of the IRCC powerplant.”

Dr. Metin told the press that allpermits were secured and groundbreaking would take place at the end of2011.

MetCap Energy Investments ispart of the Met Group, focused primari-ly on energy and agricultural invest-

ments, established in 1998 with head-quarters in Istanbul. MetCap Energyhas a proven track record in natural gasand wind projects in Turkey, havingdeveloped and invested into more than2000 MW of energy projects to date.Komet Energy and Verbena Energy areboth subsidiaries of MetCap EnergyInvestments.

“GAMA is very excited to beinvolved in this first-of-a-kind integratedrenewables combined cycle power planttogether with GE. We believe this pro-ject will set a standard for power gener-ation investments where sunshine andwind is abundant in places like theMiddle East,” said Gökhan Inanç, mem-ber of the Board of Directors anddeputy managing director of GamaPower Systems.

GE and MetCap Energyannounced an investment and licensingagreement with eSolar, a provider ofconcentrated solar thermal tower tech-nology. GE will incorporate eSolartechnology and software into its IRCC

and stand-alone thermal power plants.eSolar’s technology will be inte-

grated with GE’s FlexEfficiency 50Combined Cycle technology.FLEXEfficiency 50 can reach more than61 percent thermal efficiency, witheSolar power tower add-on plant pro-vides the capability to achieve betterthan 70 percent fuel efficiency.

“We are very excited to partnerwith GE,” said John Van Scoter, CEOand president of eSolar. “Combiningour solar solutions with GE’s thermalpower experience and large plantexpertise creates a more environmen-tally responsible power generation solu-tion for power producers worldwide”.

eSolar’s power plant technologyuses small, flat, pre-fabricated mirrorscalled heliostats to track the sun andreflect its heat to a tower-mountedreceiver. This generates steam used bythe plant’s power block to create elec-tricity. Thousands of heliostats arealigned and controlled using advancedsoftware algorithms to precisely focus

the sun’s energy. eSolar’s technology isarchitected to provide modular fieldsthat maximize energy production, andare scalable to meet a wide range ofcustomers’ power deployment.

eSolar was founded in 2007 todevelop modular and scalable solarthermal power plant technology. TheeSolar solution marries a low-impact,pre-fabricated form factor withadvanced computer software engineer-ing to meet the demand for reliable andpost-competitive solar energy. eSolar isbased in Burbank, CA.

The FlexEfficiency 50 plant is thefirst product in GE’s new FlexEfficiencyportfolio and part of GE’s ecomagina-tion commitment to drive clean energytechnology through innovation andR&D investment. The launch followsGE’s recent announcements of theworld’s most efficient wind turbine, thehighest reported efficiency for thin filmsolar and $11 billion in acquisitions thatstrengthen a portfolio supporting natur-al gas and power transmission.

FLANAGAN - GRID CHALLENGE METCONTINUED FROM PAGE 1


PERSPECTIVE


engage in measuring and monitoring theirenergy consumption typically can reduceenergy consumption by 30 percent.

Energy efficiency starts with aware-ness; giving consumers greater visibility andcontrol of their energy use enables them toseek ways to reduce energy consumption.This results in significant cost savings as wellas a more reliable electric grid and signifi-cant environmental benefits. Despite thesebenefits, there is not yet a unified definitionof “smart grid”, technology standards toenable it, or a benevolent agency monitoringthat we reach our goals.

Retail prices do not change dramatical-ly in the face of surplus or shortage. Costsare predictable and service is reliable. Whychange what works, and why do we needthis “smart grid”?

PHYSICS MEETS ECONOMICSBehind the scenes is a volatile world

where physics meets economics. Grid opera-tors constantly balance power and demand.They maintain (usually) a required reliabilitymargin; and ideally, they use the most eco-nomical dispatch stack so that overall costsare as low as possible; except when theydon’t.

Fundamentally, the grid is smart, butuneducated. Sophisticated tools help monitorand control production, just as they do formany manufacturing companies. A key dif-ference is that most manufacturers have aneye to customer demand, inventory levels,shipping schedules, and supply chain health.The grid only knows what it can produce.The amount of product shipped is deter-mined instantly literally with the flip of aswitch. Either the system works, or it fails.There are no backorders.

The net result is compromised efficien-cy. The industry produces to a regulatorygoal shaped in a political process by stake-holders representing various points of view;but the reality is they just don’t know what’shappening in those 50 story buildings today,or how they will change next year. Certainly,the political process cannot support gridchanges that are as rapid or flexible as thecustomer demands connected to it.

This is why we need Smart Grid.Forget Demand Response, in-home displays,remote energy management and all the rest.Important, yes, but these are not the justifica-tion. Grid management has used one dimen-sional models since the dawn of time. Theywork well given long planning horizons andslow rates of change. Those are coming toan end. Today, 30 states have RenewablePortfolio Standards; nuclear power is againquestionable, and a host of new technologiesand security threats are making the grid ahigh profile asset, and these things are com-ing at a pace much more rapid than before.

There are multidimensional modelingtechniques and planning tools that can beuseful, but they require information.

DRIVER OF SMART GRIDIn essence, that is the driver of Smart

Grid: distributed intelligence aided by vastnew sources of data. The goal is to integratedemand side and supply side data into a uni-fied view of electrons as they travel fromplant to ground to achieve new levels of effi-ciency. In fact, Smart Grid would let usunderstand exactly what we mean by effi-ciency.

The engineer’s view is that a devicethat accomplishes the same goal while usingless energy is more efficient. The economistsview is that it is more efficient only if thetotal cost of acquisition, installation, use,maintenance and disposal is less than the oldproduct. An integrated grid view is thatsteady state is more efficient than volatility,so the ideal is to shape demand and supplyto achieve this state. There are a number ofimplications for Smart Grid. Some examples:

A substation supplies a mix of commer-cial and residential customers. It has feedersthat bring power from a mix of wind farms,coal and gas generation. There is an intelli-gent dynamic relay on site that senses powerfluctuations and can arbitrate between linesto balance them. It uses natural variationsbetween feeders to balance power, but it alsocan send instructions for “mini-DR” events tocustomers on special tariffs. The relay under-stands how to blend this mix to meet plan-ning objectives, and it can do so more quick-ly than a centralized system. To work, it musthave data supplied by a distributed sensornetwork.

The “cul de sac” effect describes natur-al tendencies of neighbors to copy behavior.One electric vehicle leads to many. Theuncontrolled impact of this can damage localdistribution circuits. Intelligent communica-tions between vehicle and grid would preventdamaging demand spikes, use those batter-ies for balancing purposes, and providebilling data to deal with anticipated road usetaxes and other governmental needs.

A 50 story building demand typicallypeaks at 14mW but has an “average” demandof 10. The peak comes on hot days.Unbeknownst to the facility manager, thispeak is the result of 4 chillers running at 40%efficiency. Several similar buildings nearbyalso have average demands of 10mW, buttend to peak at 12. The local utility noticesthis and is able to run power analytics thatsuggest the issue. Incentive funds are avail-able to help the high use facility offset thecosts of upgrades. All parties benefit fromdeferred capital upgrades to the distributionnetwork as well as reduced need for expen-sive peak power.

POLICY MICROGRIDThese are not new scenarios and they

are simplified, but they are feasible in thenear term with technology that exists. TheAdministration’s “Policy Framework” is a callfor development in new dimensions. Ratherthan large scale, and potentially damaging,experiments with grid frequency, such as theone the Associated Press recently reportedon, perhaps a smaller scale pilot similar toDuke’s “Envision Charlotte” program can

bring together like minded customers andsupply a “policy microgrid” that will help usunderstand what works; not only technicallybut politically.

Smart policy could spur significantimprovements across the commercial build-ing sector by encouraging deeper knowledgeand understanding of how smart grid tech-nologies can drive energy efficiency. This is aparticularly important sector to address ascommercial buildings consume 25 to 30 per-cent of our energy. Many of these buildingscould drop energy consumption by one-thirdthrough better understanding and control ofsystems and activity. However, smart gridtechnologies and infrastructure upgradeswhich will make it easier for facility man-agers to monitor and manage energy con-sumption, can be complex and may not meetthe abbreviated pay back targets of buildingowners. The U.S. Green Building Councilhas begun to address this with its pilot DRLEED points program. These programs incombination with smart policy could encour-age building owners to invest in more intelli-gent energy management.

Currently, many consumers perceiveSmart Grid as an unnecessary cost aimed atenabling gadgets which will exert externalcontrol of private lives. There is an underly-ing assumption that the grid is stable, elec-tricity always will be affordable, and thatthere is no reasonable payback for energyefficiency improvements. Much of thisresults from policies that insulate ratepayersfrom energy price volatility. Other policiespenalize grid efficiency because revenue ismore a function of assets deployed than ofelectrons delivered. Long term efficiencygains tend to raise customer’s charges tocover infrastructure costs.

There are many other examples wherecustom and policy are clashing with energyand environmental goals. “A PolicyFramework for the 21st Century Grid” startsto address these challenges. It’s time to inte-grate technology, energy and policy so thatfuture generations may enjoy efficient, reli-able and economic energy as we do today.

DAVIS - BLUEPRINT FOR ENERGYCONTINUED FROM PAGE 1

22

ERNST –CO-FIRINGCONTINUED FROM PAGE 14

cylindrical shape and alters their physicalproperties, making handling more diffi-cult.

Additionally, a separate feeding andhandling system may be needed depen-dent on the plant’s coal receiving and han-dling configuration. This system can con-sist of current technology, such as belt orpneumatic conveying systems.

From there, the pellets may proceedto their own sizing process, similar to thecoal pulverizer. Because pellets are lessdifficult to grind, a separate pulverizer thatapplies a smaller force is required.

Modifications to the boiler itself are notrequired; this is not the case with manyother forms of biomass, specifically high-moisture biomass and agricultural waste,which can often cause excessive foulingdue to additives such as fertilizer.

Using wood pellets for co-firing incoal boilers, in addition to making techni-cal sense, would benefit Wisconsin’s econ-omy with direct and indirect jobs createdby new pellet mills. There are also bene-fits associated with the property and salestax that the facilities bring to the state withadditional tax revenues generated by har-vesting, transportation and O&M wages.

Another benefit to co-firing wood pel-lets is the long-term stability of fuel cost.Biomass pricing follows a steady patternsimilar to that of coal, which is desirable inco-firing because it is likely that any costincrease due to the biomass fuel will bevery predictable.

Co-firing with pellets and other typesof biomass has generally shown to be cost-effective in comparison with other renew-able technologies. The chart below showsthe levelized cost of several types ofrenewable technologies, including co-fir-ing.

Up-front fuel cost is the main con-cern involving pellet co-firing. On a permegawatt basis, pellets will always bemore expensive than raw biomassbecause of the conversion cost. However,pellets avoid many of the difficulties asso-ciated with raw biomass, such as highmoisture, inconsistency of product, fuelspecifications, excessive storage space,less BTU delivered per truck or railcar,and boiler slagging and fouling, amongothers. Wood pellets result in fewer andless costly modifications to the system andpredictability in operating a coal boilerunder co-firing conditions, day in and dayout.

In the long run, it is more economi-cal and technologically stable to co-firewith wood pellets than raw biomass.

REGULATORY OUTLOOKOne aspect of co-firing that cannot

be ignored is the incentive to do so.Though Wisconsin has an RPS whichrequires 10% renewable generation by2015, it applies only to utilities. A fairamount of the coal users in Wisconsin areindustrial-grade boilers, which are not con-strained by the RPS. Furthermore, penal-ties for non-compliance with the RPS arenot clearly defined and escape clausesmake penalties less enforceable.

In spite of these challenges, co-firinghas repeatedly been shown to be the leastexpensive and most readily adaptable ofrenewable generation methods.

Some utilities within Wisconsin arealready planning ahead and beginning thetesting and design phases required to co-fire. As demand for renewable energyincreases, it is necessary to be prepared toimplement renewable technologies quick-ly and inexpensively, and starting nowplaces coal users in an ideal position.


PART INFO GETTING

PART IDEASHARING

Equals total government connecting.

PLUS

A public service message from the U.S. General Services Administration.

USA.gov is your official source for federal, state and local government information. You’ll find answers to questions on everything from Social Security and government auctions to product recalls and travel advisories. And it’s also the place to share ideas with your government, or simply let us know what you think. To make your total government connection, visit USA.gov.


BECHTEL

AT BECHTEL we realize that building the future means building new power generation. And when it comes to building cutting-edge facilities, no other company can match the experience and expertise of Bechtel. We’ve paced the industry for more than half a century, and today we continue to help our customers provide solutions for the 21st century. We’re raising the bar with innovative designs and

quality work-delivered on time and on budget. No one delivers greater value than Bechtel.

BUILDING THE WORLD’S ENERGY FUTURE

BECHTELFrederick, Maryland USA

bechtel.com

San Francisco Houston London Brisbane


WG May June 2011 - World-Genworld-gen.com/magazine/2011/WORLD-GEN-2011-Jun-Jul.pdfgas turbine, a...

Documents

Transcript of WG May June 2011 - World-Genworld-gen.com/magazine/2011/WORLD-GEN-2011-Jun-Jul.pdfgas turbine, a...