RE is “not a science project, It’s not a boutique activity to satisfy a mandate. This is central to energy security.”

The above quote is from Richard Kidd, the Army’s deputy assistant secretary for energy and sustainability.  

The context is US Army is buying 15 MW of solar PV and 50 MW of wind power through a 30 year contract.  The interesting part is the cost of energy is lower than the cost of conventional electricity provided by the grid.  For more see http://www.bloomberg.com/news/articles/2016-01-20/u-s-army-buys-65-megaw...

More quotes from the article:

"The Army will pay ... as much as $497.4 million over the life of the deal, about $168 million less than what it would pay for power from the traditional electricity grid"

“We are not spending money for optics or to feel good about our work,” Richard Kidd, the Army’s deputy assistant secretary for energy and sustainability, said in a telephone interview Tuesday. “We are spending money that either enhances our mission effectiveness or is an investment that saves resources over time.”

Grid integration of wind

I got this table from http://www.aweablog.org/output-records-and-nerc-report-show-increasing-r....  

It summarizes on one table all the grid reliability services provided by a wind power plant and compare it to conventional power plants.  It covers LVRT, frequency support, reactive power and voltage control, active power control, frequency response and others.  The technology exists, what is lacking are policies and compensation mechanisms for wind plants to provide these valuable grid reliability services.

 

Reliability service Wind Conventional generation
Ride-through – Excellent voltage and frequency ride-through, meeting FERC Order 661A requirements– Power electronics electrically separate wind turbine generators from grid disturbances, providing them with much greater ability to remain online through disturbances  – Many cannot match wind’s capabilities or meet Order 661A ride-through requirements
Reactive and voltage control – Wind turbine power electronics provide reactive and voltage controlequivalent to that of conventional generators– Power electronics can provide reactive power and voltage control even when the wind plant is not producing power  -Conventional generation provides this service.
Active power control – Can provide extremely fast response in seconds, far faster than conventional generation– Like other generators, wind will provide this response when it is economic to do so- Xcel Energy sometimes uses its wind plants to provide some or all of its frequency-responsive automatic generation control

 

 

– Like wind, many baseload generators do not provide active power control for economic reasons, though they technically can
Frequency response Adding wind can help system frequency response by causing conventional generation to be dispatched down-Wind can provide frequency response, but it is typically more costly for it to do so than for other resources as it requires curtailing wind generation in advance  – Changes in conventional generator operating procedures have greatly reduced frequency response– Only 70-75 percent of generators have governors that are capable of sustaining frequency response for more than one minute, and about half of conventional generators have controls that may withdraw sustained frequency response for economic reasons– “Only 30 percent of the units on-line provide primary frequency response. Two-thirds of the units that did respond exhibit withdrawal of primary frequency response.” So, “Only 10 percent of units on-line sustain primary frequency response.”
Inertial response Can provide with no lost production by using power electronics and the inertia of the wind turbine rotor; this capability is commercially available but not widely deployed because there is no payment for any resource to provide this service  -Conventional generation provides this service.
Increases need for operating reserves, integration cost – Very small impact on total reserve need and integration cost  -Contingency reserve needs and costs are quite large

 

Records set for wind production in USA in 2015

November was a good month for the wind industry in the US.  The chart below shows the high penetration of wind on specific days (see http://www.aweablog.org/output-records-and-nerc-report-show-increasing-r...).

Look at these statistics:

- In Texas wind supplied over 40% of electricity in the ERCOT grid for 17 hours in a row (http://www.aweablog.org/output-records-galore-texas-does-it-again/)

- "Between mid-September and mid-November, Xcel’s Colorado power system had 20 hours in which over 60 percent of its demand was met with wind generation, and 100 hours in which wind served over 50 percent of demand."

- "Xcel Colorado has noted that in some hours it uses wind plants’ advanced controls to keep system frequency stable. ERCOT requires wind plants to provide the full range of grid reliability services. All of the large grid operators discussed above now fully integrate wind energy into their electricity markets, with wind governed by the same rules as other energy sources."

Wind is therefore reliable source of power that can be successfully integrated with high levels of penetration.

 

Wind production in regions of US

China installs 30.5 GW of wind in 2015

The total installed wind capacity in China jumped to 145 GW in 2015, with new installations of 30.5 GW.  See http://www.windpowermonthly.com/article/1379739/china-capacity-grows-145...

The spurt came as the FiT of wind is scheduled to be reduced in 2016.  For FiT in China see http://www.windpowermonthly.com/article/1378719/china-reduces-fits-two-y....

Goldwind led the Chinese manufacturers in terms of domestic deployment, with 7 GW of installations.

Another country with low wind energy price, Morocco at $25/MWh using reverse auction

In Morocco's 850 MW wind tender, the lowest bid came in at $25 per MWh, while the average bid price was $30 per MWh.  For more information see http://cleantechnica.com/2016/01/18/new-low-for-wind-energy-costs-morocc...

Factors influencing the low prices are: remarkable wind resource and concessional finance.

According to the vice minister of energy and environment, new coal power plant would be $80 per MWh.

US is the other market where wind PPA are in the $25 per MWh range or lower, however wind enjoys $23 per MWh of incentive--production tax credit for 10 years.

 

Global investments in clean energy in 2015

Bloomberg New Energy Finance reports that 2015 was a record year for global investment in clean energy, with $329 billion.  The previous record was $318 billion in 2011.  China contributed $110.5 billion, followed by US at $56 billion.  India invested $10.9 billion.  For details see https://www.washingtonpost.com/news/energy-environment/wp/2016/01/14/why...

This is despite low fossil fuel prices around the world.  This goes to show that the cost of clean energy (wind and solar) is reaching a tipping point--renewable energy is achieving parity with new fossil fuel generation.

Half of new generating capacity globally was from wind and solar.  As of end of 2015 wind and solar provide about 5% of electricity to the US grid.

 

Impact of wind energy on water savings--helping states hit with severe drought

LBNL and NREL report (http://eetd.lbl.gov/node/60652) quantifies the impact of wind deployments due to renewable portfolio standards (RPS).  These renewable energy projects have reduced the amount of water withdrawn and consumed by conventional power plants.  Look at California and Texas two states with severe droughts; both states are benefiting from wind power.

 

Water savings, billions gallons

Impact of wind energy on reduction of air pollution due to particulate matter

I found this interesting chart in http://www.aweablog.org/national-lab-report-wind-energy-win-win-win-for-...

It quantifies the health and economic savings from reduced air pollution in all regions of the country--it is a conservative estimate of the cost of air pollution and only focuses on savings from renewable energy’s reduction of one air pollutant: particulate matter.

 

Health costs due to air pollution

Benefits of Renewable portfolio standards (RPS)

Lawrence Berkeley National Labs (LBNL) and NREL are reporting (http://eetd.lbl.gov/node/60652):

  1. Under the RPS standards in 2013, 98 TWh of electricity (2.4% of total US generation) was generated from renewable energy sources
  2. This resulted in 7.5 c/kWh of benefits in terms of GHG and air pollution  emissions reductions
    1. 2.2 c/kWh from GHG, 59 million metrics tons of GHG
    2. 5.2 c/kWh from air pollution emissions reductions--77,000 metric tons (mt) of SO2, 43,900 mt of Nitrogen Oxides, 4,800 mt of particulate matter 2.5
  3. In addition, water use consumption is reduced by 27 billion gallons, and withdrawal reduced by 850 billion gallons
  4. $20 billion in GDP from 200,000 jobs
  5. Reduced consumer electricity prices by 0 to 1.2 c/kWh
  6. Reduced demand for natural gas (as fuel for electricity generation) leading to reduction in cost by 1.3c to 3.7c /kWh of RE

RPS standards exist in 29 states and Washington, DC.

The above estimates show that the savings from RE has huge: 8.8 c/kWh to 12.4 c/kWh.  This ignores savings in water consumption and benefits of higher GDP.

On the costs side, there is 2.3 c/kWh for 10 years of production tax credit from the federal government, and RPS costs.  Regarding the latter costs "RPS compliance costs over the 2010–2013 period were generally equivalent to less than 2% of average statewide retail electricity rates, but varied substantially, with the net cost to utilities and other loadserving entities ranging from -0.4 to 4.8¢ per kilowatt-hour of renewable electricity (kWh-RE)" (see http://eetd.lbl.gov/sites/all/files/lbnl-1003961.pdf, page 14).  Although these are estimates that will be refined over time, the benefits are overwhelming.

LBNL-NREL report

 

Wind power progress in US since 2008

Compelling stats according to AWEA (as of end of 2015):

• More than quadruple total capacity since 2008 with more than 70 GW now installed

• Cut costs 66 percent in six years

• Set records for share of the electricity mix across entire states and regions

• Create 73,000 well-paying U.S. jobs

• Reduce carbon pollution and save millions of gallons of water as compared to other energy sources

• Save money for consumers, companies and cities, while also help them achieving their sustainability goals