1. CALIFORNIA ENERGY COMMISSION Energy Technology Futures: Thinking About Near-Term and Longer-Term Needs Environmental Innovations Summit 2001 Washington, D.C. September 11, 2001 Terry Surles, Director Technology Systems Division California Energy Commission

2. CALIFORNIA ENERGY COMMISSION California Must be Prepared to Face the Same Issues as Others Must  Economics w Resource Competition w New technology market penetration  Environment w Climate change w Life cycle analysis  Security w Oil, Nuclear materials Energy Costs Fundamentally Affect our Overall Economy Niagara Mohawk Dunkirk steam station on Lake Erie, New York. Coal-fired but going to undergo retrofit for cofiring biomass.

3. CALIFORNIA ENERGY COMMISSION A g l] l l’

4. CALIFORNIA ENERGY COMMISSION 2000 Net Power System Eligible Renewables Biomass & Waste- 2.0 Geothermal - 4.6 Small Hydro - 3.0 Solar - 0.4 Wind - 2.0

5. CALIFORNIA ENERGY COMMISSION We Must be Prepared to Address Future Market Scenarios Regulated De-regulated De-centralizedCentralized Status Quo New energy systems Same players Supermarket of Choices Same energy systems New players

6. CALIFORNIA ENERGY COMMISSION Any R&D Program Must Consider  Near-term realities w Political w Attributes: affordable, reliable, safe  Longer-term vision w Resource competition w Future regulatory/environmental issues  For both w Limited budget w Uncertainties associated with life-cycle costs and competing technologies and lifestyles

7. CALIFORNIA ENERGY COMMISSION Vision Statement The future electrical system of California will provide a clean, abundant and affordable supply tailored to the needs of “smart”, efficient customers and will be the best in the nation. Tailored, clean, abundant, affordable supply Smart, efficient customers

8. CALIFORNIA ENERGY COMMISSION California has Established a $62M/yr Public Interest Energy Research Program (PIER) California’s Energy Future Economy: Affordable Solutions Quality: Reliable and Available Environment: Protect and Enhance

9. CALIFORNIA ENERGY COMMISSION PIER is Developing a Portfolio Approach for Funding Appropriate R&D PIER Temporal - 3 year -5 year -Next crisis Technology Mix Risk - financial - environmental - health

10. CALIFORNIA ENERGY COMMISSION Efficient Funding and Management: Enhancing Partnerships and Collaborations  US DOE and their laboratories - opportunities for co- funding  California Agencies - Cal/EPA, Trade & Commerce, CalTrans  Other states and federal agencies - NYSERDA, ASERTTI, DoD  Utilities - market transformations, linkage to public goods programs, EPRI,GTI  Private Sector - associations, individual companies  Universities - R&D, technical support

11. CALIFORNIA ENERGY COMMISSION U.S. 1997 Carbon Emissions - 1500 Tcf

12. CALIFORNIA ENERGY COMMISSION Carbon Management: An Approach for Integrated Energy Systems R&D Carbon Management Mechanism for addressing policy initiatives (S. 1008) Means to go from near term “no regrets” to longer- term sustainable development Approach for R&D collaboration

13. CALIFORNIA ENERGY COMMISSION Carbon Management: An Approach for Integrated Energy Systems R&D < < Carbon Management Efficiency Btu/GDP Decarbonization CO 2 Btu CO 2 atm CO 2 produced < Sequestration

14. CALIFORNIA ENERGY COMMISSION Demand Side Management: R&D to Support  Develop incentives for negawatts, conservation  Expand Title 24 for commercial buildings  Integration of building design with PV  Real time pricing systems to address peak loads  Incentives for load shifting technologies

15. CALIFORNIA ENERGY COMMISSION California: policy really does work MWh per person-year

16. CALIFORNIA ENERGY COMMISSION Contribution to ISO Peak Demand August 16, 2001 (MW) Commercial AC Commercial Lighting Residential AC Other

17. CALIFORNIA ENERGY COMMISSION End-Use Energy Efficiency: Low Tech can be Effective, Coupled to New Tech  Cool roofs  Ducts  Lighting advances  Low-energy cooling  Plug Loads

18. CALIFORNIA ENERGY COMMISSION Properties of Cool Roofing Materials Reflectivity, Emissivity & Roof Temperature black asphalt aluminum coating white coating low albedo high albedo very high albedo high emissivity low emissivity high emissivity hottesthotcool 160 F100 F

19. CALIFORNIA ENERGY COMMISSION Cool Roofing Energy Savings Vacaville, CA Home Base Demonstration  Initial solar reflectivity of 31%, after coating 74%  Initial max temperature 170°F, after coating 120°F  Used 10% less cooling energy  Always 85°F or less in store  Optimal comfort (below 79°F and 60% relative humidity) for 10 more shopping hours a week

20. CALIFORNIA ENERGY COMMISSION Lighting Advances: The Berkeley Lamp  Increased lighting quality  Energy savings- 30-50%  Low glare - computer  Unique control features  Up or down lighting  Lots of light  450 W worth of incandescent and halogen lighting for 150 W

21. CALIFORNIA ENERGY COMMISSION ‘NightBreeze’ Low Energy Residential Cooling Automatically brings fresh air into the house, improving air quality, without having to open windows at night Includes an efficient, variable airflow fan which saves money and energy while providing quiet comfort Helps reduce peak demand and eliminates the need for air conditioning in some California climates

22. CALIFORNIA ENERGY COMMISSION Demand Side Management Strategies are Important in Industry, Agriculture  Advanced pumps for irrigation  Fume hoods for industry  Sensors and monitors w soil moisture sensors w real-time production monitoring Collateral benefits and efficient use of other resources are an important attribute

23. CALIFORNIA ENERGY COMMISSION High Performance Fume Hood reduces airflow and energy requirements by 30-50% flow reduction from each hood cuts energy costs by $1000/yr maintains or enhances worker safety ASHRAE standard test achieved containment with 70% flow reduction with 30,000 hoods in state, the new Hood could save about 360 million kWh/yr, totaling nearly $30 million

24. CALIFORNIA ENERGY COMMISSION Spray Enhancement of Dry Cooling Systems  Dry Cooling provides a reduction of up to 95% of a power plant’s water demand  Spray Enhancement solves the problem of using dry cooling on hot, high demand days  The system at the 240 MW Crockett cogeneration plant in Crockett assisted this facility in generating an additional 7 - 15 MW of electricity during the hottest periods

25. CALIFORNIA ENERGY COMMISSION Demand Side Management can be Enhanced with Additional Technical Approaches  Transmission systems w new materials and technology w real-time measurement of carrying capacity  Standards and codes for interconnection needs  Better understanding of interdependency relationships  Instrumentation, sensors for Demand Response: Communications and Control

26. CALIFORNIA ENERGY COMMISSION Real Time Transmission Line Monitoring/Rating tension monitoring increases transmission capabilities by 15-30% highly accurate - measures line sagging to within 1-3 inches increased safety - provides the actual real time rating and provides alarms of impending clearance violations system 1-3 were built for utilities in Virginia, Colorado and Finland 200th system was sold on 8/4/00. The systems are in use on five continents by 70 utilities.

27. CALIFORNIA ENERGY COMMISSION Production  Develop and deploy distributed generation technologies  Launch new paradigm shifting programs w stop treating energy as a “tax”  Look to integrated systems in the future w merge transportation/electricity: biomass, conversion  Support and develop storage and conversion technologies as part of systems approach

28. CALIFORNIA ENERGY COMMISSION Decarbonization Focuses on Near-Term Development of Renewables and More Efficient Use of Fossil Fuels  Renewable resources assessment w better understanding of availability and location  Wind power w firm capacity forecasting w turbine for sub-optimal wind regime  Building integrated photovoltaics  Advanced emissions reduction for gas turbines  Increased efficiency of central station

29. CALIFORNIA ENERGY COMMISSION Building Integrated Photovoltaics

30. CALIFORNIA ENERGY COMMISSION PowerLight PowerLight achieved a 57% reduction in manufacturing costs of the PowerGuard and opened an 18,000 ft 2 automated tile manufacturing facility in Berkeley PowerLight is the U.S. leader in BIPV with PowerGuard 2/29/00 - PowerLight installed the largest roof-integrated, thin-film solar electric system in North America a 10,000 ft 2 installation at the Port of Cape Charles, Virginia The PowerGuard system are joined by a tongue-and-groove design that requires no roof penetration or adhesive, thus eliminating leakage and related maintenance

31. CALIFORNIA ENERGY COMMISSION PowerLight Corporation Building- Integrated PV Roof System

32. CALIFORNIA ENERGY COMMISSION Wind Energy

33. CALIFORNIA ENERGY COMMISSION The Wind Turbine Company  Design, develop and demonstrate a utility-scale wind turbine  Horizontal axis, two-blade, downwind design  Prototype developed for PIER and tested at NREL rated at 250 kW  Commercial prototype demonstration sited at the Fairmont Reservoir in LADWP territory for a 500 kW - scaled up to 750 kW - wind turbine demonstration to begin in October 2001

34. CALIFORNIA ENERGY COMMISSION Possible Solutions to Mitigate the Issues: Technologies  Distributed generation - fuel cells, microturbine, ARICE  Utilization of waste heat  Improved controls, instrumentation, information management  Storage technologies w upfront installation w address intermittent energy issues w power quality and reliability

35. CALIFORNIA ENERGY COMMISSION MCFC and PEM Fuel Cell Stack

36. CALIFORNIA ENERGY COMMISSION Alzeta Gas Turbine Semi-Radiant Burner (GTSB) Alzeta’s GTSB combustors successfully demonstrated simultaneous readings below 2 ppm emissions of NOx, CO and unburned hydrocarbon, several times lower than current state-of- the-art gas turbines. PIER is helping develop low- or no- emission electric production methods, including gas turbines for use in DG Alzeta has begun royalty repayment to the PIER Program based on direct sales and licensing of the product

37. CALIFORNIA ENERGY COMMISSION Energy Storage Technology Trinity Flywheel of Livermore, CA developed this 2kW/hr prototype Flywheel energy storage for field demonstration

38. CALIFORNIA ENERGY COMMISSION There are Many Energy Scenarios: We Need to Plan for These  Natural gas availability/price volatility  Aggressive approach to CO 2 controls  Central stations important, although distributed generation use increases: unanticipated impacts to grid

39. CALIFORNIA ENERGY COMMISSION Kalina Cycle Canoga Park Facility Kalina Cycle uses working fluid of 70% ammonia and 30% water Ammonia has much lower boiling point than water and spins the steam turbine at lower temperatures 3.2 MW plant at Canoga Park, CA GE has purchased exclusive license to use Kalina in their combined- cycle gas turbine systems worldwide $505,000 royalties received from Exergy, Inc.

40. CALIFORNIA ENERGY COMMISSION Will California Lead Change? OLD  Electricity by nuclear, gas, coal-by-wire, hydroelectric  No choice to consumers - tax mentality  Laissez-faire NEW  Base load central stations with reliance on distributed generation - “Community systems”  Choice of supplier and technology  Government catalyzes true paradigm shift

41. CALIFORNIA ENERGY COMMISSION New Generation Approved and Under Construction (6557 MW) MW per Plant June 2001

42. CALIFORNIA ENERGY COMMISSION Some Thoughts on Demand-Side Management and End-Use Energy Efficiency  Large scale development of “smart” users  Viability of low tech approach with technological advances, e.g. new paints  Increased re-use of all materials - with positive energy balances, re. No energy penalties  Transmission improvements w strategic placement of DG w materials and sensors

43. CALIFORNIA ENERGY COMMISSION Decarbonization will Focus on Improving the Economics of New Systems  Service stations (reformers) for transportation systems and electricity generation  Biomass facilities for production of industrial products and electricity  Further increase in efficiency and reduction in cost for photovoltaics  Large-scale use of accurately forecasted, dispatchable wind power  Ocean power  Nuclear power

44. CALIFORNIA ENERGY COMMISSION Solid Oxide Fuel Cell/Turbine Hybrid

45. CALIFORNIA ENERGY COMMISSION Hoopa Valley Indian Tribe - PIER Small Modular Biopower (SMB) Demonstration SMB BioMax-15 System commissioned 8/01helps promote sustainable forestry As pictured, forest clearing residue is a source of fuel as is urban wood waste (twigs, leaves, bark and other trimmings) Fully-automated control system. Nominal rating is 12.5 kW but has run continuously at 15 kW for six hours NOx levels 0-2 ppm at full power, equivalent to.05 lb. NOx/MW-hr

46. CALIFORNIA ENERGY COMMISSION EnergeTech, Australia Parabolic-Focusing Pneumatic Pressure Ocean Wave Energy Power Plant

47. CALIFORNIA ENERGY COMMISSION Carbon Sequestration Can Play a Future Role  Indirect sequestration w terrestrial w enhanced ocean fertilization  Direct Sequestration w capture, separation, transport w geological - EDR, EGR, CBM, brines w ocean - direct injection

48. CALIFORNIA ENERGY COMMISSION Schematic diagram of a ZEST Electric Power Plant

49. CALIFORNIA ENERGY COMMISSION Carbon Management and Energy R&D: Mechanism to Catalyze California Discussions, on Climate Change, Energy, Environmental and Economic Issues Global - Macro Impacts - Resource Competition Nation - Security - Environment - Economy State -Affordability - Environment - Reliability Local - End use - NIMBY

50. CALIFORNIA ENERGY COMMISSION PIER is Focused on Supporting California’s World-Class Economy  California context: we can “frame the debate” on a national level  Funding where “we make a difference” in reinventing the business  Market Transformation working with the private sector  Develop a sustainable organization that will provide a stream of benefits to California

51. CALIFORNIA ENERGY COMMISSION Conclusion: R&D is on Track to Address Future Energy Problems  Maintaining choices of energy resources w address near-term issues w prepare for the next crisis  Instrumentation and software advances will provide for a new generation of demand-side technologies  Advances in chemistry and materials will allow for advances in energy technologies We must move toward a sustainable future