NREL Overview Robert J. Noun Executive Director Communications & External Affairs January 30, 2009 NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable Energy, LLC

Energy Solutions are Enormously Challenging Security Economic Productivity • Secure supply • Reliability • Global financial crisis Vulnerability Or Opportunity Environmental Impact • Carbon mitigation • Land and water use Must address all three imperatives National Renewable Energy Laboratory Innovation for Our Energy Future 2

Achieving a Sustainable Energy Economy Requires: A National Energy Grand Challenge* Forge Essential Policies Investment in RD3E Support Education and Workforce Development Inform Decisionmaking Lead Globally Encourage Consumer Decisionmaking Use Federal Market Power * Preliminary Recommendations of the National Science Board Task Force on Sustainable Energy

Getting to “Speed and Scale” – Key Challenges Implementing Renewable Gigawatts at Scale Cost Reliability Infrastructure Dispatchability BARRIERS Displacement of Petroleum-Based Fuels Cost Life cycle sustainability Fuels infrastructure Demand and utilization BARRIERS Reducing Energy Demand of Buildings, Vehicles, and Industry Coordinated implementation Valuing efficiency Cost Performance and reliability BARRIERS National Renewable Energy Laboratory Innovation for Our Energy Future

President Obama on Renewable Energy Invest $150B in alternative energy over 10 years Double production of alternative energy in three years Upgrade the efficiency of more than 75% of federal buildings and two million private homes Create Jobs with Clean, Efficient, American Energy = $54B Transforming Our Economy with Science and Technology = $16B 5

Technology Options Are Evolving Solar Wind & Water Geothermal Biofuels National Renewable Energy Laboratory Innovation for Our Energy Future

Harvesting Past Investments First Generation Technology U.S. Renewable Electricity Installed Nameplate Capacity Sources: Chalk, AWEA, IEA, NREL, EIA, GEA National Renewable Energy Laboratory Innovation for Our Energy Future

Technology Innovation Challenges Remain The Next Generation Wind Turbines Improve energy capture by 30% Decrease costs by 25% Biofuels New feedstocks Integrated biorefineries Solar Systems Improved performance through, new materials, lower cost manufacturing processes, concentration Nanostructures Zero Energy Buildings Building systems integration Computerized building energy optimization tools National Renewable Energy Laboratory Innovation for Our Energy Future

Achieving the Potential Requires A Balanced Portfolio Use to reinforce key messages from prior briefings: Accelerating Impact: Integrating energy science and technology to accelerate options Rapidly translating innovation to commercial impact Leveraging talent and resources across organizations Taking a strong systems perspective Providing credible and objective knowledge to inform policy and market decisions National Renewable Energy Laboratory Innovation for Our Energy Future

Connecting new discoveries, via applied research, Translational Science is Key to Speed and Scale Systems Biology Photoconversion Computational Science Connecting new discoveries, via applied research, to the marketplace National Renewable Energy Laboratory Innovation for Our Energy Future

Managing the Lab-to-Market Interface Partner with industry, universities, other federal agencies, international community and state/local governments to deploy clean energy solutions Hawaii training, DuPont CRADA, Xcel/SolarTAC Contribute timely and definitive analyses on technology, policy, and market issues that impact commercialization Provide investment community with credible information (industry growth forums) National Renewable Energy Laboratory Innovation for Our Energy Future

Technology Development Programs NREL R&D Portfolio Efficient Energy Use Vehicle Technologies Building Technologies Industrial Technologies Renewable Resources Wind and water Solar Biomass Geothermal Energy Delivery and Storage Electricity Transmission and Distribution Alternative Fuels Hydrogen Delivery and Storage Foundational Science and Advanced Analytics National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future NREL FY2008 Program Portfolio Actual $328.3 Million Weatherization $3.4M Facilities and Infrastructure $76.2M Solar $72.4M Transmission and Distribution $1.9M WFO $18.7M Bioenergy $35.4M Other DOE $7.6M Geothermal $1.9M Basic Sciences $13.5M Wind $33.9M FEMP $4.6M Buildings $11.1M Vehicle Technologies $19.3M Hydrogen $28.4M Updated October 2008 National Renewable Energy Laboratory Innovation for Our Energy Future

NREL Funding and Staffing 14

NREL: Leadership by Example TEAM Initiative DOE's effort to maximize energy efficiency and renewable energy generation across the DOE complex Science and Technology Facility achieves LEED ‘Platinum’ First Federal building NREL Site is “Carbon Neutral” Onsite renewables (Mesa Top and NWTC PV) Renewable Energy Certificate (REC) purchases Renewable Fuel Heating Plant Will offset 75% of current South Table Mountain campus natural gas use (significant on-site RE project) Financed and installed through Energy Savings Performance Contract (ESPC) Energy Policy Act and Executive Order Requirements Currently exceeding EPAct requirements Meet or exceed new Executive Order requirements Vehicle Fleet 48 vehicles, 34 (71%) are alternatively fueled Fleet petroleum reduced ~45% since 2000 National Renewable Energy Laboratory Innovation for Our Energy Future

Market Growth is Enabled by Progressive Public Policy JAPAN CALIFORNIA Federal, state and local governments are the stewards “Big 3” experience shows that this policy model works well National Renewable Energy Laboratory Innovation for Our Energy Future

State Policy Framework Renewable Portfolio Standards Source: DSIRE database, March 2008 National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Wind Today’s Status in U.S. 22,820 MW installed capacity Cost 6-9¢/kWh at good wind sites* DOE Cost Goals 3.6¢/kWh, onshore at low wind sites by 2012 7¢/kWh, offshore in shallow water by 2014 Long Term Potential 20% of the nation’s electricity supply Worldwide installed capacity = 56,813 MW as of Jan 2006 Worldwide industry = $12-$14B * With no Production Tax Credit Updated December 8, 2008 Source: U.S. Department of Energy, American Wind Energy Association National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Wind NREL Research Thrusts Improved performance and reliability Advanced rotor development Utility grid integration Source: Megavind Report Denmark’s future as leading centre of competence within the field of wind power National Renewable Energy Laboratory Innovation for Our Energy Future

Solar – Photovoltaics and CSP Status in U.S. PV 1,000 MW installed capacity Cost 18-23¢/kWh CSP 419 MW installed capacity Cost 12¢/kWh Potential: 11-18¢/kWh by 2010 5-10 ¢/kWh by 2015 8.5 ¢/kWh by 2010 6 ¢/kWh by 2015 Source: U.S. Department of Energy, IEA Updated January 5, 2009 National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future NREL Research Thrusts PV Higher performance cells/modules New nanomaterials applications Advanced manufacturing techniques CSP Low cost high performance storage for baseload markets Advanced absorbers, reflectors, and heat transfer fluids Next generation solar concentrators 8.22-megawatt Alamosa, Colo., PV solar plant National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Buildings Status U.S. Buildings: 39% of primary energy 71% of electricity 38% of carbon emissions DOE Goal: Cost effective, marketable zero energy buildings by 2025 Value of energy savings exceeds cost of energy features on a cash flow basis NREL Research Thrusts Whole building systems integration of efficiency and renewable features Computerized building energy optimization tools Advanced HVAC and envelope technologies Building integrated PV April 10, 2008 National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Geothermal Today’s Status in U.S. 2,800 MWe installed, 500 MWe new contracts, 3000 MWe under development Cost 5-8¢/kWh with no PTC Capacity factor typically > 90%, base load power DOE Cost Goals: <5¢/kWh, for typical hydrothermal sites 5¢/kWh, for enhanced geothermal systems with mature technology NREL Research Thrusts: Analysis to define the technology path to commercialization of Enhanced Geothermal Systems Low temperature conversion cycles Better performing, lower cost components Innovative materials Long Term Potential: Recent MIT Analysis shows potential for 100,000 MW installed Enhanced Geothermal Power systems by 2050, cost-competitive with coal- powered generation April 10, 2008 National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Biopower Biopower status in U.S. 2007 capacity – 10.5 GWe 5 GW Pulp and Paper 2 GW Dedicated Biomass 3 GW MSW and Landfill Gas 0.5 GW Cofiring 2004 Generation – 68.5 TWh Cost – 8-10¢/kWh Potential Cost – 4-6¢/kWh (integrated gasification combined cycle) 2030 – 160 TWh (net electricity exported to grid from integrated 60 billion gal/yr biorefinery industry) April 10, 2008 National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Biofuels Current Biofuels Status in U.S. Biodiesel – 165 companies; 1.85 billion gallons/yr capacity1 Corn ethanol 134 commercial plants2 7.2 billion gal/yr. capacity2 Additional 6.2 billion gal/yr planned or under construction Cellulosic ethanol (current technology) Projected commercial cost ~$3.50/gge Key DOE Goals 2012 goal: cellulosic ethanol $1.31/ETOH gallon or ~$1.96/gge 2022 goal: 36B gal Renewable Fuel; 21B gal “Advanced Renewable Fuel”– 2007 Energy Independence and Security Act 2030 goal: 60 billion gal ethanol (30% of 2004 gasoline) NREL Research Thrusts The biorefinery and cellulosic ethanol Solutions to under-utilized waste residues Energy crops NREL Research Thrusts The Biorefinery Solutions to under-utilized waste residues - Agriculture - Forestry - Urban Advanced agriculture (energy crops) enabled by plant genomics and bioscience Updated February 2008 Sources: 1- National Biodiesel Board 2 - Renewable Fuels Association, all other information based on DOE and USDA sources National Renewable Energy Laboratory Innovation for Our Energy Future

Plug-In Hybrid Electric Vehicles (PHEV) Status: PHEV-only conversion vehicles available OEMS building prototypes NREL PHEV Test Bed Key Challenges Energy storage – life and cost Utility impacts Vehicle cost Recharging locations Tailpipe emissions/cold starts Cabin heating/cooling ~33% put cars in garage NREL Research Thrusts Energy storage Advanced power electronics Vehicle ancillary loads reduction Vehicle thermal management Utility interconnection Vehicle-to-grid National Renewable Energy Laboratory Innovation for Our Energy Future

Renewable Electricity at Scale Microturbines Focus on Key Barriers Grid integration/Interconnection Technology Reliable Operation at High Penetration Utility Grid Grid Simulator 3 AC Buses Synchronous Generators Inverters Wind Turbines 3 DC Buses Battery Banks Load Simulators PV Array Fuel Cells spatial diversity of the resource flexible conventional generation grid operations and control areas limited curtailment for extreme events load management and at high penetrations possibly storage Technical Concerns Real but solvable Lack of transmission capacity from stranded renewable resource locations Affected by utilities' existing generation mix regulating capabilities, load characteristics, resource availability, and correlations between system load and resources Additional systems costs imposed by variability and uncertainty may go up with increasing penetration Costs are moderate – up to 20-30% Penetration – and depend on balancing authority and market structure Electrolyzer National Renewable Energy Laboratory Innovation for Our Energy Future

An Integrated Approach is Required National Renewable Energy Laboratory Innovation for Our Energy Future

National Renewable Energy Laboratory Innovation for Our Energy Future Visit us online at www.nrel.gov Operated for the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy by the Alliance for Sustainable Energy, LLC National Renewable Energy Laboratory Innovation for Our Energy Future