Panel 1: DOE's Investment in the Future: A Sampling of Energy Security Initiatives

Solar Energy
www.doeopportunityforum.com/panelskeynote.php “The Solar Energy program focuses on research and deployment of solar power that will reduce our demand for natural gas and promote a cleaner environment. Through the Solar America Initiative (SAI), the Solar Program is accelerating the market competitiveness of solar electricity as industry-led teams compete to deliver photovoltaic (PV) systems ($137.3 million) that are less expensive, more efficient, and highly reliable. By focusing on PV manufacturing and systems integration issues, the program estimates that progress toward its cost could aid in the deployment of 5–10 gigawatts (GW) of new grid-connected electricity generating capacity by 2015."

At $148.3 million, funding for Solar Energy remains constant with the FY 2008 request, as do the Federal Energy Management ($16.8 million) and Industrial Technology ($46.0 million) programs.

New Jersey Board of Public Utilities - Press Release - 10/04/07 excerpt without comment

Board of Public Utilities Approves First Step towards Exploring Off-shore Wind Development in New Jersey
Offshore Wind Grant Solicitation provides funding source for offshore wind test project

(Newark, NJ) – The Board of Public Utilities today unanimously approved an offshore wind competitive grant solicitation with up to $19 million in funding to support the financing and development of an offshore wind pilot. As part of this funding the Board will provide up to 10 percent of the total incentive upfront to help conduct the needed studies and prepare needed permit applications.

The successful grant will build an aggregate capacity of up to 350 MW of offshore renewable wind electricity. This capacity represents enough electricity to power approximately 125,000 homes. Criteria to be considered in the awarding of the grant include:

• Location in the study area from the DEP ecological baseline study, extending 20 miles offshore from Seaside Park to Stone Harbor (72 miles of the NJ coastline)
• Assist in relieving or reducing congestion in the ACE distribution system and the PJM transmission systemz
• Demonstrate an ability to finance construction through market sources, which may include tax exempt bond financing through EDA.

The Board will accept proposals for funding up to and including January 16, 2008, with the award projected for March of 2008. The evaluation committee will chose a proposed winner to recommend to the Board if a proposal meets the relevant criteria, but reserves the right not to make an award if no acceptable proposal is received.

“Governor Corzine has been very clear that the State will not move forward with construction if upcoming studies or analyses conducted by the Department of Environmental Protection and Commerce indicate that the construction or operation of this pilot project will have unacceptable adverse impacts on the environment, the economy or tourism,” ...said Board of Public Utilities President Jeanne M. Fox.

The grant solicitation will be available in full at the end of this week on the New Jersey Clean Energy website, at www.njcleanenergy.com.

This is exciting news for N.J. because it's further proof that industry CAN benefit from solar powered electricity systems.  Something more corporations should be acting upon.  This is a win-win for Hall's, DT Solar and residents of N.J.

DT Solar, a Turner Renewable Energy company, and Hall's Warehouse Corporation, a family-owned refrigerated and frozen food storage and distribution company, recently announced an agreement to build a 2 MW solar electric power system to supply electricity to their facility in South Plainfield, New Jersey. When completed, this project will be the largest rooftop solar electric system serving a private company in the United States.

Hall's frozen and refrigerated warehouses are located in the Northeast and Mid-Atlantic states.  The solar array will consist of approximately 13,500 solar modules, will produce nearly 3 million kWh of clean energy and will eliminate more than 2 million pounds of CO2 emissions annually.

The deal makes incredible sense for Hall's: Hall's will make no up-front investment in the solar project. Instead, Hall's will purchase all of the electricity produced by the system under a long-term agreement at rates below what they would pay the local utility for electricity.

The solar power system will be installed as part of the New Jersey Board of Public Utilities' "SREC-Only Pilot Program", a new market-based incentive program introduced by the BPU to replace the up-front cash rebates offered in recent years as a means of meeting the state's legislatively mandated solar power development goals. The "SREC-Only Pilot Program" enables the financing for the project by creating a market for trading Solar Renewable Energy Certificates (SRECs) in the state and providing a level of assurance on the value of SRECs over an eight-year timeframe.

DT Solar will design, build and operate the system, and work with an investment partner to finance the cost of the installation. Revenue from electricity sales to Hall's, and the sale of Solar Renewable Energy Certificates (SRECs) to New Jersey electric utilities, will pay for the investment over time.

DT Solar develops and delivers clean, reliable and cost-effective solar electric power systems for commercial, industrial, government and utility clients. Turner Renewable Energy has developed many of the largest and technically demanding solar power systems in North America. Visit www.turnerenewablenergy.com for more information.

Investors are betting

that large-scale solar from companies like Ausra are the most cost-competitive. Ausra, is testing a system to generate power at centralized stations. These solar parks use concentrating solar power to create steam that turns a turbine to make electricity. If constructed on a large enough scale,these solar thermal plants are already cost-effective when compared with fossil-fuel power generation, according to advocates of the approach. Such advocates include Vinod Khosla, founder of Khosla Ventures and Ausra investor and board member. “Ausra’s technology replaces smoke with mirrors by eliminating fuel use for power generation, and sets a new benchmark for the cost and scale of solar power."

Ausra has hit on the grail of solar energy systems - "thermal storage." In addition to generating steam from its array of special metal tubes, Ausra stores hot water that a power plant can draw on during times when the sun is not shining. That thermal storage is key to competing on price even at peak demand times, said Robert Morgan, the chief development officer of Ausra. Right now Ausra is testing systems in Australia and expects prices of electricity to set at $.10 per kilowatt hour for plants between 100 and 200 megawatts. For plants between 100 and 500 mw, the cost goes down to 8 cents kwh.

zonnig

Let oil prices soar!  Its all good.

What can be said about the American movement toward energy sanity?  It's sluggish but gaining momentum.  And as long as gas prices at the pump stay high we'll see more consumers interested in solar solutions.  So what's my angle?  I think we've been spoiling this planet for decades unnecessarily.  I think that the corporations that own America don't care about the air, water and soil quality - at least not anywhere where they can spoil those things with impunity. 

So the corporations with a vested interest in the status quo will have to curb their greed, which would be good; or continue with their blind profiteering and keep prices high, which would also be good; or figure out a way to make money in the new renewable paradigm, also good.   Its all good.  It only varies in the degree of pain WE want to endure.  In that regard - we control a slice of our destiny.  If the gas prices stay high, the chances of better alternative fuel cars increases.  If gas prices go low (my personal worst case scenario) then alternative promotion will be weakened but at least you and I will save some money.  I feel the lethargy setting in even at $2.50 a gallon and I'm not proud to admit it.  My favorite scenario is that the big industry embraces the renewable paradigm, researches and develops for it, figures out how to make it work for them and us. 

Whatever happens we can still act individually in our own self interest and move toward energy independence.  Let's start a list - the "Green 500" - the people who have most successfully moved off the grid.  Rather than comparing who earns the most cash - how about those who pay the least for energy because they're proving the renewable paradigm works.

Yeah - let oil prices stay high.  The consumer will get madder.  Maybe something will happen to change the path (rut) we've been on.