March 4, 2010

The Newest Hybrid Model
By JAD MOUAWAD
NY Times

http://www.nytimes.com/2010/03/05/business/05solar.html?ref=business&pagewanted=print


INDIANTOWN, Fla. — In former swamplands teeming with otters and wild 
hogs, one of the nation’s biggest utilities is running an experiment in 
the future of renewable power.

Across 500 acres north of West Palm Beach, the FPL Group utility is 
assembling a life-size Erector Set of 190,000 shimmering mirrors and 
thousands of steel pylons that stretch as far as the eye can see. When 
it is completed by the end of the year, this vast project will be the 
world’s second-largest solar plant.

But that is not its real novelty. The solar array is being grafted onto 
the back of the nation’s largest fossil-fuel power plant, fired by 
natural gas. It is an experiment in whether conventional power 
generation can be married with renewable power in a way that lowers 
costs and spares the environment.

This project is among a handful of innovative hybrid designs meant to 
use the sun’s power as an adjunct to coal or gas in producing 
electricity. While other solar projects already use small gas-fired 
turbines to provide backup power for cloudy days or at night, this is 
the first time that a conventional plant is being retrofitted with the 
latest solar technology on such an industrial scale.

The project’s advantages are obvious: electricity generated from the sun 
will allow FPL to cut natural gas use and reduce carbon dioxide 
emissions. It will provide extra power when it is most needed: when the 
summer sun is shining, Floridians are cranking up their air-conditioning 
and electricity demand is at its highest.

The plant also serves as a real-life test on how to reduce the cost of 
solar power, which remains much more expensive than most other forms of 
electrical generation. FPL Group, the parent company of Florida Power 
and Light, expects to cut costs by about 20 percent compared with a 
stand-alone solar facility, since it does not have to build a new steam 
turbine or new high-power transmission lines.

“We’d love to tell you that solar power is as economic as fossil fuels, 
but the reality is that it is not,” Lewis Hay III, FPL’s chairman and 
chief executive, said on a recent tour of the plant. “We have got to 
figure out ways to get costs down. As we saw with wind power, a lot has 
to do with scale.”

For solar power, scale is still a relative term. At its peak, the solar 
plant will be able to generate 75 megawatts of power, enough for about 
11,000 homes. But that is dwarfed by the adjacent gas plant, which can 
produce about 3,800 megawatts of power. (A megawatt is enough to power a 
Wal-Mart store.)

Utilities are being pulled in different directions. They must ensure 
that the lights remain on at all times as well as provide the 
lowest-cost power to their customers. At the same time, they are being 
pressed to find ways to reduce their greenhouse gas emissions and invest 
in renewable power sources.

The latter is critical if the nation is to succeed in reducing its 
emissions of carbon dioxide. Power plants account for over a third of 
domestic greenhouse gas emissions that are responsible for global warming.

“We believe there is a cost to society associated with carbon emissions 
and not having energy security and not having domestic energy supplies,” 
Mr. Hay said. “But it’s not a level playing field for renewable versus 
fossil fuels right now.”

Mark Brownstein, an energy and grid specialist at the Environmental 
Defense Fund, praised FPL’s innovative thinking. “When we talk about 
getting to a low-carbon, clean-energy economy,” he said, “we know there 
is not going to be a single technology that is going to transform the 
industry.”

Currently, 29 states require utilities to increase the amount of power 
produced from renewable energy, which includes solar, wind, 
hydroelectric, geothermal and biomass. Last year, Congress considered a 
federal mandate for 25 percent of renewable power by 2025 as part of its 
energy and climate legislation. (The bill has since stalled.)

Utilities have been scrambling to meet the state requirements, and many 
will not be met, according to electrical utility experts.

While renewable power is growing, its share of the nation’s electrical 
generation remains small. Wind power, which has surged in recent years, 
accounts for less than 2 percent of the nation’s electrical output. 
Solar is even smaller. Coal, meanwhile, generates half of the nation’s 
electrical output, followed by natural gas and nuclear energy.

Part of the challenge in increasing the share of renewable energy 
sources is to make up for their variable nature — at night, for example, 
or when the wind does not blow. Because electricity cannot be stored 
easily, utilities must always produce enough power to meet electric 
demand at any given time. In practice, this means they need keep a lot 
of idle plants that can be fired up rapidly when demand spikes.

About 20 percent of the generation capacity overseen by PJM 
Interconnection, a regional transmission operator covering 13 
northeastern and mid-Atlantic states, is used less than 100 hours a 
year, according to Lester B. Lave, a professor of economics at Carnegie 
Mellon’s school of business.

“As long as the contribution of wind and solar is very small, utilities 
can handle it very well,” Mr. Lave said. But what happens once the share 
of renewable power rises to 10 percent? Or 20 percent? “No one knows 
what the magic number is.”

Spain, which generates more than 12 percent of its electricity from 
wind, has struggled with wind variability, Mr. Lave said. Similar 
problems are also cropping up in the United States, especially in states 
where solar and wind power are on the rise. In 2008, for example, Texas 
narrowly avoided a blackout when wind power, which supplied 5 percent of 
demand at the time, experienced an unexpected lull, driving wind 
electricity generation down to 350 megawatts, from 2,000 megawatts, in 
less than four hours, according to Mr. Lave.

It is a problem the industry is beginning to focus on, and hybrid plants 
could provide part of the answer. By adding renewable power to existing 
fossil fuel plants that operate around the clock, the thinking goes, 
utilities could have readily available power that could be fired up 
instantly whenever their wind or solar resources dropped off.

The Electric Power Research Institute is working on two pilot programs 
that seek to integrate solar power with traditional coal and gas plants 
in New Mexico. A dozen hybrid projects similar to FPL’s plant are 
planned around the world, said Cara Libby, the institute’s project 
manager for renewable energy.

“Intermittency is probably the challenge utilities are putting the most 
efforts into researching at the moment,” Ms. Libby said. “The biggest 
concern, of course, is how to keep the power on.”

Instead of adding new capacity, smart grid designs and investments in 
transmission lines could also help balance the contribution of 
intermittent resources, said Tim Stephure, an analyst at Emerging Energy 
Research, a consulting firm. Some regional operators, such as PJM, are 
also encouraging their large customers to cut consumption when demand is 
at its peak to reduce the overall power requirements on the grid, said 
Mr. Brownstein of the Environmental Defense Fund.

At FPL, part of the challenge will be to fine-tune the system so that 
its gas and solar components provide just as much electricity as needed 
at any given time — day or night, cloudy or clear. At a cost of $476 
million, the solar project, known as the Martin Next Generation Solar 
Energy Center, will be second-biggest, after the 310-megawatt Solar 
Electric Generating System in the Mojave Desert in California. That 
system, also owned by FPL, was built in the 1980s.

FPL estimates it will cut its natural gas use by 1.3 billion cubic feet 
each year, the consumption of 18,000 American homes. It will also cut 
carbon emissions by 2.75 million tons over 30 years, the equivalent of 
taking 19,000 cars off the road.

The solar panels concentrate the sun’s rays into a vacuum-sealed tube 
that contains a synthetic oil, which heats up to 748 degrees Fahrenheit. 
The oil is then used to produce steam that is fed into an existing 
turbine to produce electricity. Using small sensors, the mirrors will be 
able to rotate during the day to track the sun’s movement. In case of a 
hurricane, they will flip upside down for protection.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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