Solar Energy Commercialization

SEC 501 SOLAR ENGINEERING AND

COMMERCIALIZATION - I

LECTURE 01 COURSE OVERVIEW

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Learning Objectives SEC 501 - Solar Engineering and Commercialization - I

• An understanding of the solar resource

• An understanding of the components of photovoltaic systems

• An understanding of the design and operation of PV systems at

residential and non-residential scales

• An introduction to the economics and policies of PV systems

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Lecture 01- Learning Objectives

• Course objectives and outcomes

• Course organization, texts, assignments, etc.

• An overview of the Solar Enterprise

• Energy and Power - Consumption, present and future

• Energy and Power - Definitions

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References

1. Dr. Ronald Roedel’s lecture slides

2. Wood Mackenzie : https://www.woodmac.com/

3. U.S. Energy Information Administration : https://www.eia.gov/

4. Solar Energy Industries Association (SEIA) : https://www.seia.org/

5. Office Of Energy Efficiency & Renewable Energy : https://www.energy.gov/eere/office-energy-efficiency-renewable- energy

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U.S Electricity Generation by sector

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Source : Energy Information Administration - https://www.eia.gov/totalenergy/data/browser/index.php?tbl=T01.02#/?f=M

U.S Electricity Generation by Renewables

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Source : Energy Information Administration - https://www.eia.gov/totalenergy/data/browser/index.php?tbl=T01.02#/?f=M

Global Electricity Generation - Wind

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Source : Wood Mackenzie - Global wind power market outlook update: Q2 2019 - https://www.woodmac.com/our- expertise/focus/Power--Renewables/global-wind-power-market-outlook-update-q2-2019/

The Solar Enterprise

■ Solar business has witnessed exponential growth in the last two decades both on a global scale and national scale.

■ Currently 5% of U.S electricity demand is supplied by solar power (77.7GW)

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Photovoltaic System Installations in U.S

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Source : Solar Market Insight Report 2019 Q4 - https://www.seia.org/research-resources/solar-market-insight-report-2019-q4

Photovoltaic System Installations in U.S

■ Latest solar market insights and policy updates in all 50 states and Washington, D.C can be accessed on the Solar Energy Industries Association (SEIA) website- https://www.seia.org/states-map

■ All market data is current through Q4 2019.

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Annual PV Installations

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Source : Global solar PV installations to reach record high in 2019 - https://www.woodmac.com/press-releases/global-solar-pv-installations-to-reach- record-high-in-2019/

Solar power - Pros

■ Renewable input power – solar power is a non-depleting source.

■ Direct conversion of forms of energy – optical energy to electrical energy.

■ Clean energy – carbon footprint eliminated.

■ Abundance of raw material for cell construction – silicon, which is a primary element in the solar cell construction is abundantly available on earth’s crust.

■ Reliable and durable technology – solar cells are robust and long- lasting.

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Renewables versus coal –power generation

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Source : TODAY IN ENERGY - https://www.eia.gov/todayinenergy/detail.php?id=39992

Solar power - Cons

■ Energy source intermittent – solar power is unavailable throughout the day.

■ Fluctuating output – power grid instability due to shadows and clouds.

■ Low power density – carbon footprint eliminated.

■ low power density– 80% of incident sunlight is unused. ■ power curve does not match the system demand profile - with higher

penetration, its marginal value shrinks to zero.

■ Supply-demand curve mismatch - power curve does not match the system demand profile.

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Undesirable effects of solar penetration

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Source : Confronting the Duck Curve: How to Address Over-Generation of Solar Energy - https://www.energy.gov/eere/articles/confronting-duck-curve-how-address-over-generation-solar-energy

Growth of solar power - Favorable factors

• Technological Factors • Silicon solar cells and modules • Inexhaustible input power at zero cost

• Societal Factors • Concerns about fossil fuel and nuclear power plants • An increasing awareness of sustainability issues

• Economic Factors • Steady reduction in cost of PV systems • Favorable government policies and business climate

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Factors impeding Growth of solar power PV system components

• Dependence on materials that are not earth-abundant • High labor costs

New PV system components • Problems with smart components

Certain economic and business factors • Hostile interactions with utilities, utility regulating bodies - Net metering

issues, Power demand charges • Expansion of low-cost natural gas supply and use in utility scale electricity

generation • Tariffs • Recent analysis showing that solar energy suffers from a “merit order effect”

which will shrink its value with increasing penetration into the energy market 18

Global Energy Storage Overview

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Source : Wood Mackenzie - https://www.woodmac.com/

World Energy Overview

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What these units mean : • Quad = a quadrillion BTUs • BTU = the amount of

energy necessary to raise or lower the temperature of one pound of water one degree F

• (One four inch wooden kitchen match consumed completely generates approximately 1 BTU)

Source : EIA projects 28% increase in world energy use by 2040 - https://www.eia.gov/todayinenergy/detail.php?id=32912

World Energy Overview

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Source : http://www.greenparty.ca/sites/greenparty.ca/files/Energy_Consumption_vs_GDP_655.jpg

Human Development Index

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The United Nations Human Development Index (HDI) relates energy use to the quality of life to which most humans aspire. The middle class averages about 0.8 on the HDI and requires access to over 3,000 kWhrs per person per year. 80% of the world’s population of over 7 billion people is below 0.8 on the HDI.

Source : Wright and Conca, 2007) - http://hdr.undp.org/en/data/map/

World Energy Overview

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Figure 1 https://www.populationeducation.org/content/population-information

Human Development Index

• The Human Development Index could be used to establish an estimate of the energy needs for the future

• Assumptions: o In the near future, the population of the planet will exceed 8 billion o Let us assume we want the HDI for each nation to be 0.90 o From the chart on the previous slide, we would require access to 4MWh

of electrical energy/per person (per year) o Therefore, the annual electricity requirement is

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Eglobal,annual  =  8E09 people( ) ⋅  4MWh/person( ) = 32,000 TWh (or 32 PWh)

Human Development Index Continued

• Current annual electricity generation is approximately 24 PWh, and roughly 23% is produced by renewable sources

• With a global effort to carry out more energy efficiency measures and more deployment of renewable energy, the 32 PWh target could be achieved in a 10-15 year timeframe. However, the population will be much closer to 10 billion by then

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