Past Decade Warmest on Record, China Takes Top Spot in Energy Use
The Earth has been growing warmer for the past 50 years, and the past decade was the warmest on record, according to a National Oceanic and Atmospheric Administration (NOAA) report.
State of the Climate in 2009, released July 28, draws on contributions from over 300 scientists from 160 research groups in 48 countries. The report examines 10 key climate indicators, which all point to a warming world.
Seven indicators are rising: air temperatures over land, sea-surface temperatures, air temperatures over oceans, sea levels, ocean heat contents, humidity, and temperatures in the troposphere, the active weather layer of the atmosphere that’s closest to the Earth’s surface. The three declining indicators are arctic sea ice, glaciers, and spring snow cover in the Northern Hemisphere.
Not only were the 2000s the hottest decade on record but each of the last three decades was much warmer than the previous decade. See the NOAA press release, the 2009 State of the Climate report Web site, and the NOAA Climate Services Web site. Meanwhile, a Stanford University report finds that heat waves and extremely high temperatures could be commonplace in the US within 30 years. The study drew on two dozen climate models to project what would happen in the US if increased CO2 emissions raised the Earth’s temperature by another 1.8°F, to 3.6°F hotter than the pre-industrial era, a scenario considered likely by the International Panel on Climate Change.
The study projects that from 2030-2039, most areas of Arizona, Colorado, New Mexico, and Utah could endure at least seven seasons equally intense as the hottest season recorded between 1951-1999. The climate modeling, which used unprecedented high-resolution simulations, found that an intense heat wave was likely to occur as often as five times between 2020-2029, and that the following decade would be even hotter. The study found persistent hot, drier conditions over most of the U.S. by the 2030s, posing serious risks to human health and agriculture and leading to more droughts and wildfires. DOE provided partial support for the study. See the Stanford University press release.
China has overtaken the US to become the largest energy consumer in the world, according to preliminary data from the International Energy Agency (IEA).
China used roughly 2.25 billion tons of oil last year compared to the 2.2 billion tons by the U.S. China rose to the top faster than expected because it was less affected by the global financial crisis than was the U.S. and its energy consumption would be even higher if the government hadn’t made significant progress in reducing the energy intensity of the nation’s economy (amount of energy used per unit of output).
The IEA notes that China has experienced "phenomenal" growth in energy demand in recent years, doubling its energy use since 2000. But despite this rapid growth in demand, China’s energy consumption on a per capita basis is still only approximately one-third of the average among industrialized countries. Considering this low per-capita energy consumption and China’s rank as the most populous nation on the planet, the IEA concludes, "prospects for further growth are very strong." The IEA will further explore these trends in its World Energy Outlook 2010, due to be published on November 3. See the IEA press release and the accompanying chart.
$188 Million to Small Business Clean Energy Technology Development
On August 2, DOE announced it will award $188 million – including $73 million in Recovery Act funds – to small businesses in 34 states to develop clean energy technologies with potential for commercialization.
Funded through DOE’s Small Business Innovation Research program (SBIR) and Small Business Technology Transfer program (STTR), the selections are for Phase II work. 201 awards in 76 targeted topics will support development of prototype or pilot operations for innovative technologies that have successfully passed the proof-of-concept stage. Targeted technology topics include smart grid, energy efficient buildings, industrial energy use, and high performance computing.
Smart grids will reduce energy use and thereby mitigate the need for new power plants, but system devices from utility control systems to household appliances need to communicate. One such Phase II project, led by Infotility in Colorado, will develop a "Smart Controller" that enables communication among distributed energy systems, such as rooftop solar panels, plug-in electric vehicles, and residential demand response devices.
In the solar sector, DOE seeks to develop novel but commercially feasible solar concepts and devices. A project led by Luminit, LLC, in California will build a unique sun-tracking holographic concentrator that separately uses visible light for PV power and infrared light to provide heat and hot water for a building. In keeping with Recovery Act goals, DOE’s SBIR efforts have incorporated a fast-track process for applications and provided business incubator funding. See the DOE press release and the SBIR/STTR Programs Office Web site.
U.S. Wind had Strong 2009, Weak 2010
2009 was a record year for the U.S. wind industry, adding 10 GW of capacity and securing $21 billion in investments, according to "2009 Wind Technologies Market Report," released by DOE’s Lawrence Berkeley National Lab on August 4.
Cumulative wind capacity grew 40% despite the economic turmoil, and wind was second only to natural gas in adding new electrical capacity to the U.S. grid (for the fifth consecutive year). Still, a sharp drop in wholesale electricity prices (due in part to lower natural gas prices) pressured the wind industry’s bottom line in 2009 and indicated challenges were on the horizon.
The U.S. held the lead in total global wind capacity but China reached 36% of the world’s market share compared to the U.S. at roughly 26%. Domestically, Texas added 2292 MW, easily outpacing the next highest states – Indiana with 905 MW and Iowa with 879 MW. 26 other states brought large-scale wind turbines online.
LBNL authors note that natural gas prices may not rebound as the economy recovers, which would put the near-term comparative economic position of wind at some risk. Further, the installed cost of wind projects continued to rise. Projects installed in 2009 were, on average, 9% more expensive at $2,120 per kW.
Although those costs will eventually decline, they remain high as developers work through the dwindling backlog of turbines purchased at peak prices in early 2008.
The picture for 2010 thus far hasn’t been rosy according to a July 27 update by the American Wind Energy Association (AWEA). Only 700 MW of wind was added in the second quarter (Q2) of 2010, down 57% and 71% from 2008 and 2009 levels, respectively. Manufacturing investment is also lagging.
That 700 MW that was installed brought the first half U.S. total to 1239 MW, a level similar to 2007. Even with over 5,500 MW now under construction, AWEA projects that 2010 installations will likely be 25%-45% lower than 2009 installations. Beyond 2010, the amount of construction in the pipeline also drops off.
One bright spot was that wind turbine orders saw a slight uptick in Q2, mostly for 2010 delivery. Only two new wind manufacturing facilities came online in the first half of 2010, compared to seven in 2008 and five in 2009. Total installed U.S. wind capacity stands at 36,300 MW. See the AWEA press release and the AWEA Mid-Year 2010 Market Report (PDF 541 KB).
$43 Million Loan Guarantee for NY State Energy Storage
On August 9, DOE announced it finalized a $43 million loan guarantee for Beacon Power Corp’s 20 MW flywheel energy storage plant in Stephentown, New York.
The $69 million plant-the first of its kind in the world-will improve the stability and reliability of the state’s electric grid by acting as "shock absorbers", using the flywheel to absorb and discharge energy to balance power generation and consumption. The flywheel plant will provide about 10% of NY’s total capacity to regulate frequency on a typical day.
Flywheel-based frequency regulation is fast and efficient, ramping up or down 10 times faster than conventional fossil fuel generators. The plant will be online and earning revenue by Q1 2011. Beacon is developing two more similar sized plants, one in the PJM Interconnection grid- which encompasses parts of 13 states and the District of Columbia-will be partially funded by a $24 million DOE Smart Grid stimulus grant. The other in Glenville, NY, is the subject of a second loan guarantee application that DOE is currently evaluating. See press releases from DOE and Beacon Power.
On August 5, DOE announced it would extend the application deadline for July 2009 loan guarantees for clean energy projects to October 5. The Part II application deadline is still December 31, 2010. See the DOE press release and the DOE Loan Guarantee Program Web site.
On August 2, AES Energy Storage received a conditional commitment for a $17.1 million loan guarantee for construction of a 20 MW energy storage system using advanced lithium-ion batteries. The Johnson City, New York project will help provide a more stable and efficient electrical grid for the state’s high-voltage transmission network.
Power plants typically maintain the "grid frequency regulation" needed to balance generation and consumption by burning more fossil fuels. The AES project eliminates the need to burn fossil fuels by using battery technology and software to provide the same grid frequency regulation at a lower price. This advanced frequency regulation capability will allow renewable electricity generation to play a larger role in New York’s transmission network. The AES technology reduces carbon emissions by 70% compared to frequency regulation provided by fossil energy suppliers.
DOE has now offered conditional commitments for loan guarantees to support 14 clean energy projects. See the DOE press release and the DOE Loan Guarantee Program Web site.
Xcel Energy’s Wind-to-Battery Test Shows Promising Results
Xcel Energy has reached a milestone in preliminary tests of a 1 MW battery-storage system to store wind energy and move it to the grid.
The Wind-to-Battery Project shows the need to compensate for wind variability can be reduced. The small demonstration project – the first U.S. use of the sodium sulfur battery-storage technology as direct energy storage – is part of Excel’s research on integrating unpredictable renewable energy into the grid.
Begun in October 2008, the research is being conducted with a battery installation in Luverne, Minnesota, connected to a nearby 11-MW wind farm. 20, 50 kW battery modules weighing about 80 tons can store 7.2 MW-hours of electricity, with a charge/discharge capacity of 1 MW. Fully charged, the battery can power 500 homes for over seven hours.
Preliminary tests indicate the technology can shift wind energy from off-peak to on-peak availability, and can support the regional electricity market by responding to real-time imbalances between generation and load. The system could provide voltage to the grid, which would contribute to system reliability, according to Xcel Energy. Testing will continue to see how the battery system handles larger amounts of wind energy transfers to the grid.
The next phase of the project will evaluate the technology’s cost effectiveness. A final report is expected in summer 2011. See the Xcel Energy press release and the Wind-to-Battery report (PDF 2.94 MB).
Bay Area Gets $5 Million for EV Charging Stations
On August 5, the Bay Area Air Quality Management District (BAAQMD) in San Francisco approved $5 million to fund further development of a regional electric vehicle (EV) charging infrastructure program. The stations and home chargers are part of the BAAQMD’s "Spare the Air" program, designed to make owning EVs viable in the Bay Area.
The program will support EV charging infrastructure grants for 3,000 home chargers at single family and multi-family dwellings. The grants will also supply 2,000 public chargers at employer and high-density parking areas and 50 fast chargers near highways. According to the BAAQMD, transportation accounts for over 50% of the air pollution in the region. See the (BAAQMD press release) and the BAAQMD Web site.
$117 Million Loan Guarantee for Hawaii Wind Project
On July 27, DOE announced it finalized a $117 million loan guarantee for Kahuku Wind Power, LLC, and its 30 MW Kahuku Wind Power project in Hawaii.
The project includes development of an innovative wind plant that will supply electricity to about 7,700 households a year. According to company estimates, the project, located on Oahu’s North Shore, will create more than 200 wind jobs on the island. The project will be the first to meet reliability requirements for wind and solar energy set by Hawaiian Electric Company, the only electric utility operating on Oahu.
The project, which began construction in July, uses 12, 2.5 MW Liberty wind turbines manufactured by Clipper Windpower and a 10 MW battery energy storage system that will modulate and smooth fluctuations in power output caused by changes in wind levels.
First Wind Holdings, LLC, the project sponsor and an independent U.S.-based wind developer, built and operates Hawaii’s largest wind facility, the 30 MW Kaheawa Wind project on Maui, which generates 9% of the island’s electricity needs. See press releases from DOE and First Wind, and the DOE Loan Guarantee Program Web site.
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EREE Network News is a weekly publication of the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).
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