1. Next Generation Alternatives: The Future or Flavor of the Month? Part B
Peter Schwarz Professor of Economics, Belk College of Business and Associate, Energy Production and Infrastructure Center (EPIC) UNC Charlotte
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2. Outline Introduction What is a Next-Generation Energy Alternative?
Next-Generation Renewable Energy
Next-Generation Non-Renewables
Other Next-Generation Alternatives
The Role of Markets and Governments in Next-Generation Technologies
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3. Next-Generation Non-Renewables (1) Carbon Capture and Storage (CCS)
Option for electricity generation and industrial processes using coal or natural gas
Coal is most important as it emits 2x as much carbon as NG
Attempts to date have proved very expensive
Three-step process
Separate CO2 from other gas by-products.
Transport as we would natural gas.
Bury underground, or find a re-use.
Coca-CO2la
Soil remediation
Enhanced oil and gas recovery
Methanol and other fuels
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4. Next-Generation Non-Renewables (2) Nuclear
Small scale plants
Primary advantage is lower financing cost
Easier shipping of components
Another use is for remote locations off the grid
Disadvantages
Higher levelized cost
While less waste per reactor, multiple reactors
More costly to protect many plants against terrorism
Nuclear fusion
PWR
Passive safety
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5. Next-Generation Non-Renewables (3) Nuclear
Alternative designs and fuels
Gen III+ U.S. plants under construction
Passive safety
Way over budget
Gen IV by 2030
Thorium
Cheaper, safer
However, fission reaction doesn’t produce as much energy.
MOX and Plutonium
MOX 95% uranium, 5% Plutonium
Plutonium from recycled fuel
Research halted at Savannah River plant
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6. Next-Generation Non-Renewables (3) Nuclear
Fusion
Needs to produce more energy than it consumes.
Requires hotter temperature than sun in a contained reaction
Uses huge amount of energy to maintain magnetic field
ITER (International Thermal Experimental Reactor)
Commercialization by 2050
Tokomak : Torus- shaped like donut
In the end, another (very expensive) way to boil water
CERN (Conseil Europeén por la Recherche Nucléaire) Large Hadron Collider
Particle accelerator
Recall Superconducting Supercollider
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7. Other Next-Generation Alternatives (1) Hydroelectric (1)
Challenge to find new sites
Small-scale hydro
Will avoid use of dams and ecological consequences.
≤30 MW vs. ≥500 MW
Can connect to grid
Or isolated areas off the grid.
To be economical
Near customers
Sufficient stream flow or other source of water
Other sources if hydro unavailable
Seasonal variations such as drought.
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8. Other Next-Generation Alternatives (2) Hydroelectric (2)
Wave and tidal power
Depends upon size of waves and change in tides
Expensive to build and maintain
More predictable than wind or solar
Less predictable than fossil fuels or nuclear
Wave energy technology
Employs buoys or floats
Buoys are moored in water
Harnesses power from rise or fall of waves to drive hydraulic pumps.
Water moves pump.
Tidal energy
Uses dam-like structure
Impact on ecology, less than traditional permanent dam.
Needs to be close to shore
Impacts view, alternative uses such as recreation.
U.S. DOE funding projects to extend life of facilities.
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9. Other Next-Generation Alternatives (3): Fuel Cells and Batteries (1)
Electricity as well as transportation (discussed earlier)
High cost
Requires external source of hydrogen (discussed earlier) and oxygen
Chemical reaction, no combustion
So no emissions (except water vapor)
Requires electricity to produce chemical reaction
Where there are emissions, unless renewable energy used.
Hydrogen storage
Suppliers can balance value for electricity, transportation, industry uses.
Hydrail
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10. Other Next-Generation Alternatives (3): Fuel Cells and Batteries (2)
Expensive
Stores energy internally
Stores electricity
Unlike fuel cell, does not generate electricity
Re-use or dispose (environmental issue)
Grid scale or distributed generation
Even electric vehicles can supply power to electricity grid
Lithium ion battery most common
Environmental and national security concerns
Needs incentive: Higher payment for providing ancillary services
backup electricity, stabilizing voltage, etc.
U.S. DOE funding projects with different technologies
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11. The Role of Markets and Government in Next-Generation Technology (1)
Research and Development (R & D)
Public goods characteristics
Non-rival
If non-excludable, free riders
Market will underprovide
Patents provide incentive, but exclude inefficiently
And monopoly rights
Public-private partnerships
Florida Power & Light
Turbines powered by solar or natural gas when solar unavailable.
CERES partners with SUNY
New PV materials.
Using computer-chip technology
In conjunction with U.S. DOE funding
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12. The Role of Markets and Government in Next-Generation Technology (2)
Government failure can also occur
Nuclear Regulatory Commission
May lobby for nuclear research
Modular plants
Fusion research
Against CCS, renewables research
Corn-based
As we have said before, first-best policy is carbon market
In its absence, choose between two imperfect alternatives
Market failure
Government failure
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