[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012

INSIDE CLEAN ENERGY
biomass

geothermal

A 13-Page Special Report on the Current State of U.S. Clean Energy.
energy storage
solar
coal

uclear

wind

Zpryme Smart Grid Insights | May 2012 | Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved

biomas

geotherma
INSIDE CLEAN ENERGY: A 13-Page Special Report on the Current State of U.S. Clean Energy

Table of Contents
US: THE CLEAN ENERGY LANDSCAPE ................................................................. 2
US: THE CLEAN ENERGY MIX ............................................................................... 4
Biomass ............................................................................................................... 5
Biomass Recent U.S. News .......................................................................... 5
Biomass Policies, Laws, & Regulation ........................................................ 5
Biomass Leading Technologies .................................................................. 6
Coal .................................................................................................................... 6
solar
storage
Coal Recent U.S. News ................................................................................ 6
Coal Policies, Laws, & Regulation .............................................................. 7
Coal Leading Technologies........................................................................ 7
Geothermal ....................................................................................................... 8
Geothermal Recent U.S. News ................................................................... 8
Geothermal Policies, Laws, & Regulation ................................................. 8
Geothermal Leading Technologies .......................................................... 9
Nuclear ............................................................................................................... 9
Nuclear Recent U.S. News ........................................................................ 10
Nuclear Policies, Laws, & Regulation ...................................................... 10
Nuclear Leading Technologies ................................................................ 10
wind

Solar & Wind .................................................................................................... 10
Solar & Wind Recent U.S. News ................................................................ 11
Solar & Wind Policies, Laws, & Regulation .............................................. 11
coal

nuclear

Solar & Wind Leading Technologies ........................................................ 12
Energy Storage ................................................................................................ 13
Energy Storage Recent U.S. News ........................................................... 13
Energy Storage Policies, Laws, & Regulation ......................................... 13
Energy Storage Leading Technologies ................................................... 14
BOTTOM LINE: CLEAN ENERGY & THE US.......................................................... 14

1 Zpryme Smart Grid Insights | May 2012

Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.


biomas

geotherma
“By working together, we can seize
the clean energy opportunity – saving
money for consumers, promoting
sustainable economic growth and
solar
storage

protecting the planet for future
generations.”
Source: Steven Chu, U.S. Secretary of Energy, (quote from the third session of the Clean Energy Ministerial), April 27, 2012
wind
coal

nuclear




US: THE CLEAN ENERGY LANDSCAPE historic highs, and under current policies, we estimate that
energy use and CO2 emissions would increase by a third
There are major challenges facing the U.S. today, and one by 2020, and almost double by 2050,” she says. “Many
of the most important of all is to meet growing energy clean energy technologies are available but they are not
demands. The U.S. needs a more diverse, cleaner mix of being deployed quickly enough to avert potentially
energy sources (see figure 1) that will provide security disastrous consequences.” In its report, Tracking Clean
without causing irreversible harm to the globe. “In the last Energy Progress, the EIA ranked progress on 11 key low-
few years, we’ve seen wind and solar become carbon indicators, including renewables, nuclear energy
mainstream and a cost competitive energy resources for and carbon capture and storage, and found the world
the United States,” said John McDonald, Director, was on track to meet just one of these targets.
Technical Strategy & Policy Development, GE’s Digital
Energy business to Zpryme. “While the wind market faces The report, Tracking Clean Energy Progress, offers three
some uncertainty in 2012 with the expiration of the policy recommendations for moving clean-energy
Production Tax Credit, wind – and renewables more technologies to the mainstream market:
broadly – will continue to play an important role in
meeting our future energy demands.” 1. Level the playing field for clean energy
technologies. This means ensuring that energy prices
Installed U.S. Capacity (GW) by Renewable Energy Source, 2010 to 2035 reflect the “true cost” of energy – accounting for
Figure 1, Source: U.S. EIA
the positive and negative impacts of energy
Growth production and consumption.
Renewable Energy Source* 2010 2015 2020 2025 2030 2035
(2010 to 2035)
Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%
Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11%
2. Unlock the potential of energy efficiency, the
Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%
“hidden fuel” of the future. Making sure that energy
Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11% is not wasted and that it is used in the best possible
Solar 0.9 3.5 3.5 3.8 5.2 9.6 933% way is the most cost-effective action and must be
Wind 39.1 51.6 51.6 54.6 57.5 65.4 68% the first step of any policy aimed at building a
Energy Storage* 1.7 2.4 5.2 7.3 9.2 12.5 635% sustainable energy mix.
*Zpryme

While progress is being made on renewable energy, most 3. Accelerate energy innovation and public support
clean energy technologies are not being deployed for research, development and demonstration. This
quickly enough; the International Energy Agency (EIA) said will help lay the groundwork for private sector
this week. “The world’s energy system is being pushed to innovation, and speed technologies to market.
breaking point,” Maria van der Hoeven, executive director
of the EIA writes. “Energy-related CO2 emissions are at Back to the U.S. -- Americans are still divided about
whether to eliminate federal subsidies for any form of



energy and is giving less support to nuclear power and U.S. Adding to both public and private sector pressure, a
According to another recent report Who’s Winning the handful of U.S. energy initiatives have expired and may
Clean Energy Race? from the Pew Charitable Trusts, the not be renewed; for example in 2011:
United States has invested the most in Clean Energy of any
country in 2011 (see figure 2), retaking the lead from  Energy Efficient Homes Tax Credit for Builders
China, which had held the top sport for the last two years.  Advanced Energy Manufacturing Tax Credit
 Department of Energy Section 1705 Loan
Top 10 in Clean Energy Investment, 2011
Figure 2, Source: Pew Charitable Trusts1
Guarantees
 Department of the Treasury Section 1603 Grant
Program
2011 Investment 2010 Investment %
2011 Rank Country
(USD billions) (USD billions) change
With shaky renewable energy support from the American
1 United States 48 33.7 42% public, gas prices at an all-time high (despite slight drop
2 China 45.5 45 1% this week), spending from the 2009 stimulus bill mostly
3 Germany 30.6 32.1 -5% spent (see expired U.S. energy initiatives above) and a
4 Italy 28 20.2 39%
5 Rest of EU-27 11.1 15.2 -27%
presidential race bringing significant focus to energy
6 India 10.2 6.6 55% policy, clean energy will have to become more than a
7 United Kingdom 9.4 7 34% political-focal-point.
8 Japan 8.6 7 23%
9 Spain 8.6 6.9 25%
10 Brazil 8 6.9 16% US: THE CLEAN ENERGY MIX

The U.S. is sliced down the middle regarding the As the world moves towards energy independence,
elimination of federal subsidies for any form of energy and several types of clean energy technology have attained
is giving less support to nuclear power and U.S. funding of media attention, have policies and laws that regulate
renewable energy, a new poll has found, a new Yale- them, and have technologies that are being developed
George Mason University poll has found this week. Fifty- to further increase efficiency and safety.
four percent of respondents opposed doing away with
subsidies for oil, gas, coal, nuclear or renewable energy, Biomass, clean coal, geothermal, nuclear, solar, wind, and
while 47% favored the idea. Further, just fewer than 80% of storage technologies offer the opportunity to move from
Americans support federal funding of renewable energy carbon based energy products to clean, renewable
research. energy sources.

1 From Who’s Winning The Clean Energy Race? - These figures have been revised by
Bloomberg New Energy Finance as of February 2012.



Biomass received a $5 million grant to build a biofuel digester to
replace 90% of the fossil fuels it currently uses. Finally, on
In 2011, 19,786,000 Mw hrs of electricity was created from April 14, an airplane flew across the Pacific Ocean fueled
biomass, biogenic municipal solid waste, landfill gas, by biofuels. The plane departed from Washington, and
sludge waste, agricultural byproducts, and other biomass illustrates the potential impact biofuels and is the first step
solids, liquids and gases. Excluding hydro and wind power, to reduce oil dependence.
biomass dominates the projected increases in US
renewable energy generation, being projected to Biomass Policies, Laws, & Regulation
increase four-fold primarily due to Federal requirements to
use more bio-mass based transportation fuels, and state EPA regulations are stringent, governing boilers and other
level required portfolio scales. However, the growth rate is equipment that burn biomass. The main focus is on
also projected to slow as tax credits will expire in 2012. controlling emissions of carbon monoxide, particulate
matter, hydrogen chloride, mercury, and dioxins/furans at
Installed U.S. Capacity (GW) for Biomass, 2010 to 2035 major sources of industrial, institutional, and commercial
boilers.
Growth
Renewable Energy Source 2010 2015 2020 2025 2030 2035
(2010 to 2035)
Another source of regulation is through the US Department
Wood & Biomass 2.5 2.7 2.7 2.7 2.7 2.7 11%
of Agriculture, which governs the land management
practices of the 155 national forests, 20 grasslands, and 1
The U.S. capacity for biomass is projected to grow from
prairie. The main focus of the policies is to create
2.5GW in 2010 to 2.7GW by 2035. The compound annual
standards regarding the use of the land including wildlife,
growth rate (CAGR) from 2010 to 2015 is projected to be
endangered species, and protected areas. The Land
11 percent.
Management Act has been used recently as land has
been designated for use in biomass facilities, and the
Biomass Recent U.S. News
environmental effects of these facilities have been
investigated. Furthermore, the ARRA of 2009 allows eligible
Several biomass projects have gained recent attention in
taxpayers to receive a tax credit or grant from the US
the National media. Wisconsin’s Public Service
Treasury Department for electricity generated by qualified
Commission voted 3-0 to direct 75% of funding for
energy resources. The legislation allowed incremental
renewable energy efforts to biomass projects, focusing on
energy production associated with the expansion of
the state’s strengths in agriculture and forestry. This
biomass facilities to increase 1.1 cent to 2.2 cents per hour
investment brings $7.5 million to the industry. Nova
depending on open or closed loop systems.
Thermal is currently installing a pilot project at
Philadelphia’s Waste Water Treatment Plant to convert
The Energy Independence and Security Act of 2007,
sewage into biomass fuel. In addition, Kansas has recently
establishes a target of 36 billion gallons per year of biofuel



utilization. Through the establishment of such guidelines,  Cookstove Technologies: the most prevalent
incentives and targets have allowed for the development biomass use is in small stoves in underdeveloped
of the biomass field, while protecting the environment of areas. Current technologies focus on improving
potential hazards. Finally, the Energy Policy Act of 2005 efficiency and lowering emissions, as well as
extended $50 million in grants in biomass energy projects, reducing the chance for fire or poisoning from
further highlighting the importance and providing burning the fuel.
regulations for the biomass energy.
Coal
Biomass Leading Technologies
Coal is the largest source of electricity generation in the
 Combustion: the main approach utilizing biomass is United States. The EIA projects that few new coal-fired
to use combustion in a boiler, where the steam is power plants will be built and a 25% growth rate will be
sent to a turbine, which in turns creates electricity. experienced for coal from 2009-2035. However, several
new laws and regulations are being imposed on the coal
 Co-Generation Facilities: the combined heat and industry, which could offer significant challenges for future
power production facility is located on industrial sites growth.
with a steady supply of biomass. It operates with a
combustion boiler, but the steam created is also Installed U.S. Capacity (GW) for Coal, 2010 to 2035
recovered and used for heating needs. This Figure 4, Source: U.S. EIA

produces high energy efficiency rates of over 80% Growth
conversion rates. (2010 to 2035)
Coal 308.1 288.9 286.2 285.6 285.6 285.8 -7%

 Gasification: the biomass is heated in an
The U.S. capacity for coal is projected to grow from
environment where it breaks down into a flammable
308GW in 2010 to 285.8GW by 2035. The compound
gas. After the gas is cleaned and filtered, it can
annual growth rate (CAGR) from 2010 to 2015 is projected
then be used in combined cycles and in gas and
to be -7 percent.
steam turbines.
Coal Recent U.S. News
 Anaerobic Digestion: the biomaterials go through
fermentation that converts the organic materials
The Obama Administration recently proposed the 1st
into mostly methane (60%) and carbon dioxide
standards to cut carbon dioxide emissions from all new
(40%) biogas. Enzymatic digestion and hydrolyzate
power plants. In conjunction, the EPA proposed new
fermentation both increase the fermentation levels
source performance standards. These standards will hold
and act as a catalyst for conversion.
all new coal fired power plants to the same regulations as



natural gas powered plants. The ACCE President and CEO
released a statement in response stating that the EPA is  Post-Combustion Capture: Flue Gas Separation
ignoring the effect such policies have on American treats the carbon dioxide as a pollutant and passes
families and accuses them of attempting to stagnate the the flue gas through an amine solution where it is
coal industry, thus making it impossible to build new plants absorbed. 20-25% of the total plant output is
due to the economic impact of such policies, and will reduced due to reduced efficiency and the energy
cause the closure of existing plants. Other news suggests requirements of the capture process.
that a collaboration of US and Chinese technologies will
allow the US to utilize the billions of dollars it has spent in  Oxyfuel Combustion: the coal is burned in an
research and development, as well as carbon capture oxygen-rich environment. The flue gas is mostly
sequestration and storage in an area where one new coal carbon dioxide and thus is more readily captured by
plant is built weekly on average. This collaboration will the amine scrubbing process. It is achieved for
allow the US advancements in clean coal technology to about half the cost and the plant utilizes several
be utilized on a large scale, in an area with fewer pieces of technology, including an air separation
regulations. unit, boiler island, compression and purification units.

Coal Policies, Laws, & Regulation  Integrated Gasification Combined Cycle (IGCC):
using the coal and steam to produce hydrogen and
In April 2012, the EPA proposed new source performance carbon dioxide from the coal, it is burned in a gas
standards for all new fossil-fired electricity generating units. turbine and secondary steam turbine. The gasifier is
This standard required that the emissions from coal fired fed oxygen instead of air and the result is highly
plants be equal to plants generating electricity from concentrated carbon dioxide which is more readily
natural gas. The EPA has also proposed National Uniform captured post-combustion.
Emission Standards for storage vessels, transfer operations,
and control devices. The Clean Air Amendments promote  Pre-Combustion Capture: using a shift reactor to
the use of clean, low-sulfur coal, as well as the oxidize the carbon dioxide with water, the resulting
development of innovative technologies to clean high- gas steam is hydrogen and carbon dioxide. The
sulfur coal. In addition, the amendments encouraged carbon dioxide and other impurities are able to be
existing plants to repower with clean coal technologies. separated before combustion with 85% of the
Finally, laws govern the storage of the byproducts of coal carbon dioxide removed. The remaining hydrogen
combustion, namely carbon dioxide, to prevent spills or becomes the fuel for electricity generation.
contamination of the soil and water supply.

Coal Leading Technologies



Geothermal byproduct of oil and gas wells and converts it into
geothermal energy. The federal government has also
Geothermal energy is able to take advantage of the approved the use of geothermal technology to create
consistent temperature of the earth at depths of 150-200 energy at the Newberry Volcano in Oregon. The goal is to
meters or more. The heated water is then extracted from produce commercial levels of geothermal energy. Finally,
the earth and used to both generate electricity and heat the National Renewable Energy Lab and the State of
facilities. North Dakota identified two locations to test advanced
geothermal systems in Rhame and Dickinson. These
Installed U.S. Capacity (GW) for Geothermal, 2010 to 2035 developments in the field of geothermal energy identify
the potential usages of geothermal energy, as well as
Growth advanced technologies that can make the energy type
(2010 to 2035)
more productive.
Geothermal 2.4 2.8 3.7 4.4 5.5 6.4 170%

Geothermal Policies, Laws, & Regulation
The U.S. capacity for geothermal is projected to grow from
2.4GW in 2010 to 6.4GW by 2035. The compound annual
First, the 1974 Geothermal Research Development and
Demonstration Act established the first set of policies in
170 percent.
geothermal energy and serves as a foundation for all
geothermal energy research and production. In 2007,
Geothermal Recent U.S. News
Congress passed the Advanced Geothermal Energy
Research and Development Act, which supports and
Ball State University in Muncie, Indiana has been
expands geothermal energy production, and awards
recognized for its geothermal energy system, which has
grants to establish Geothermal Technology at centers of
cut heating costs by 50%. The university has over 1800
higher education. It also established geothermal energy
bore holes on the property that are at a depth of 400 feet
as a priority and an area to be further explored. More
below ground where it reaches an equilibrium
recently geothermal energy is further supported by
temperature. In addition, geothermal technology will be
programs where residential and commercial facilities
used to treat contaminated soil and water from the
qualify for either a federal investment tax credit or
Lawrence Aviation Industries Superfund site in New York.
production tax credit by employing geothermal energy
The treated water will be used to condition the air inside a
technology.
new water treatment plant, producing higher efficiency.

The US Department of Energy has announced plans to tap
into geothermal energy from the Rocky Mountain Oil Test
Center in Wyoming. This project uses hot water that is a



Geothermal Leading Technologies Nuclear

 Closed Loop Systems: circulate water or a mixture of According to the World Nuclear Association there are
antifreeze and water through a series of closed, plans for a number of new reactors in the U.S., the
buried pipes. prospect of low natural gas prices continuing for several
years has dampened these plans and probably no more
 Open Loop Systems: also utilize a series of closed, than four new units will come on line by 2020.
buried pipes, but utilize a lake, well, or pond to draw
water into the system. The energy is extracted from Nuclear Power in the United States:2
the water, and then returned to its source.
 The U.S. is the world's largest producer of nuclear
 Enhanced Geothermal Systems: reservoirs are power, accounting for more than 30% of worldwide
engineered to produce energy from existing nuclear generation of electricity.
geothermal sources. This involves improving the
permeability of rock and allows access to the Earth’s  The country's 104 nuclear reactors produced 807
heat at a depth. Production wells remove the water billion kWh in 2010, over 20% of total electrical
from the rock and extract the energy from it. output.

 Geothermal Heat Pumps: moves the energy from  Following a 30-year period in which few new
the geothermally heated water to the home or reactors were built, it is expected that 4-6 new units
business. During the winter it uses the heat from may come on line by 2020, the first of those resulting
water heated by the earth into the home or business from 16 license applications made since mid-2007 to
and in the summer it pulls the heat from the facilities build 24 new nuclear reactors.
and discharges it into the ground.
 However, lower gas prices since 2009 have put the
 Dual Source Heat Pump: combines a traditional air economic viability of some of these projects in
source heat pump with a geothermal heat pump. doubt.
Overall, the heat pump is less expensive in most
cases than complete geothermal heat pumps and  Government policy changes since the late 1990s
offers improved efficiency from traditional systems. have helped pave the way for significant growth in
nuclear capacity. Government and industry are
working closely on expedited approval for
construction and new plant designs.

2 World Nuclear Association, April 22, 2012



adopted new safety rules that would require power plants
Installed U.S. Capacity (GW) for Nuclear, 2010 to 2035
to have plans in place to prevent and deal with potential
natural disasters. Although the commission has approved
Growth
(2010 to 2035)
the new regulations, it disagrees on the implementations.
Nuclear 101.2 103.6 111.2 114.7 114.2 112.0 11% The new rules will likely require plants to undertake costly
upgrades. Nuclear power companies are given a year to
The U.S. capacity for nuclear is projected to grow from propose their plans to be fully compliance by 20165.
308GW in 2010 to 285.8GW by 2035. The compound
annual growth rate (CAGR) from 2010 to 2015 is projected Nuclear Leading Technologies
to be 11 percent.
Currently, five nuclear reactors designs are under the NRC
Nuclear Recent U.S. News design certification process. These include6:

In February 2012, the Nuclear Regulatory Commission  GE – Advanced Boiling: Water Reactor (ABWR)
(NRC) approved license to build new nuclear reactors. The
commission approved a combined construction and  Westinghouse: Advanced Passive 1000 (AP1000)
operating license for an AP1000 reactor design from
Westinghouse Electric3. The approval for new commercial  GE-Hitachi Nuclear Energy: Economic Simplified
reactor was the first since Three Mile Island accident in Boiling-Water Reactor (ESBWR)
1979.
 Mitsubishi Heavy Industries: U.S. Advanced
Nuclear Policies, Laws, & Regulation Pressurized-Water Reactor (US-APWR)

The Obama Administration remains committed to nuclear  AREVA: U.S. Evolutionary Power Reactor (U.S. EPR)
power as part of its overall energy policy. It has provided
an $8 billion in loan guarantee for construction of new Solar & Wind
reactors at the Vogtle and another $200 million support for
NRC licensing. In March 2012, it announced a $450 million Solar and Wind technology are two of the most well-
to support the design, development, and licensing of two known clean energy types. Solar energy is utilized in all
American-made small modular reactors (SMRs) five years4. states, both at commercial facilities and in residential
environments. Wind technology is also common place
In an aftermath of the Fukushima accident, the NRC has and can be utilized through both wind farms and at
3 www.nei.org/newsandevents/newsreleases/nrc-approval-of-plant-vogtles- 5 www.pbs.org/wgbh/pages/frontline/health-science-technology/nuclear-
construction-operating-license-opens-new-nuclear-energy-era aftershocks/first-post-fukushima-safety-rules-approved-by-nrc/
4 www.ne.doe.gov/newsroom/2012PRs/nePR032212.html 6 www.nrc.gov/reactors/new-reactors/design-cert.html




individual facilities. and others involved in the suit. Wind technology has also
entered the spotlight as a lawsuit filed by environmentalists
Installed U.S. Capacity (GW) for Solar, 2010 to 2035
has been settled, thus allowing turbines to be installed in
Nevada’s 1st wind farm. The settlement also provides
Growth additional research on how construction of the facility will
(2010 to 2035)
Solar 0.9 3.5 3.5 3.8 5.2 9.6 933%
affect the sage grouse and bats indigenous in the area.
Maine’s largest wind energy developer lost approval of a
project, as nature guides and those engaged in the
The U.S. capacity for solar is projected to grow from .9GW
tourism industry opposed development. The company
in 2010 to 9.6GW by 2035. The compound annual growth
plans to offer a scaled down version of the project to
rate (CAGR) from 2010 to 2015 is projected to be 933
reach a compromise in the future. First Wind secured the
percent.
financing ($76 million) to construct the Bull Hill Wind
Installed U.S. Capacity (GW) for Wind, 2010 to 2035 Project, the 5th in Maine, where it will create construction
jobs, increase local tax revenue, and provide clean
Growth energy for 18,000 homes in the area. Finally, American
(2010 to 2035)
Wind Energy Association released an annual report,
Wind 39.1 51.6 51.6 54.6 57.5 65.4 68%
claiming that more than $20 billion in private investments
was generated through wind power, with the majority
While the U.S. capacity for wind is projected to grow from dedicated to building new facilities and producing more
39.1GW in 2010 to 65.4GW by 2035. The compound annual efficient turbines.
68 percent. Solar & Wind Policies, Laws, & Regulation
Solar & Wind Recent U.S. News Much of the regulations on the solar energy are created
through the Solar Energy Industries Association’s
NASA’s new Moffet Field facility has been rated the collaboration with the US Congress to draft regulations
greenest federal building in the nation, because of its that affect the industry in areas including finance,
usage of green technology, including solar and wind manufacturing, and tax programs. In addition, the
systems. The 80,000 sq. ft. building has earned a LEED American Wind Energy Association has also worked with
certification for its use of green technologies. Solar power Congress to create reforms in both wind energy and in the
has also reached international attention as a law suit has renewable energy field as a whole.
been filed against Chinese firms for engaging in unfair
trade practices and offering low cost imports that have Most recently, the Clean Energy Standard Act of 2012 has
been flooding the US market and “undermining the US been proposed to create a national standard for clean
solar industry” according to Solar Wind Industries America and renewable energy generation, with a goal of 80%



clean energy generation by 2035. Programs include the  Thin Film: the use of thin film has been expanded to
Department of Energy Loan Guarantee program, which allow spray on options and include window liners.
was created in the Energy Policy Act of 2005 which aims to The improved technology allows the ability to utilize
support new and innovative technologies, as well as solar power on untraditional sources, including
reduce the risk associated with introducing these new windows. In addition, the spray-on options allow
products into the market. solar panels to be installed in nontraditional
locations where solar energy was unable to be
Renewable energy standards and clean energy standards cultivated in the past.
require a certain percentage of electricity to be
generated by renewable sources. Both standards have  Scaled Wind Farm Technology (SWIFT): SWIFT
increased investments in both solar and wind power. The technology enables efficient and near silent wind
Energy Policy of 1992 was the first driver of renewable turbine operation, is grid connected and can be
energy investment, establishing a production tax credit mounted to a structure or a pole. The SWIFT
which started massive investments in the renewable technology is ideal to urban and suburban areas.
energy field. Wind energy was a key recipient of said
investments. Wind energy’s main regulations are primarily  Floating Wind Turbines: these large scale wind
concerned with wildlife protection, as well as noise control. turbines are anchored to the sea floor by cables
Both issues have prevented some wind farms from being and float over waters over 100m deep. In deeper
erected or otherwise affected their size or location. waters, the wind is consistently higher and the
turbines are able to move with changing waters,
Solar & Wind Leading Technologies thus being able to survive storms. If a problem does
occur, they can be towed to port for repairs,
 Back Contact Silicon PV Panels: recently installed at minimizing down time.
a DOE facility, these solar panels demonstrate an
efficiency of 23.4%, a record for mass produced,  Micro Wind Turbines: these small turbines are
large scale solar panels. All of the contacts are on designed for use on smaller scale projects and are
the back of the solar cell, leaving a larger space on being seen at homes in residential areas. Several
the top for energy production. different types and models are available depending
on need. Some are designed for powering a small
 Microconverters: solar panels produce DC power, appliance, and modular units are available for
while our homes utilize AC power. These systems larger scale use on the roofs of urban and suburban
convert the electricity produced and allow the solar areas. Some are pole mounted and several types
panels to produce AC energy that is ready to use. have also eliminated the need for a pole. These
small scale models offer options to users and with so




many options available, a user is able to find one to facilities could be filled by the fall and this would cause
meet their specific needs. prices to fall by 50%. Hydrogenics Corporation entered
into a contract with Elbridge, Inc to develop large, utility
Energy Storage scale energy storage. AES Energy Storage will also work
with Portland General Electric to create storage facilities
One challenge that has faced clean energy in the past is to bridge gaps and further incorporate renewable energy
energy storage. Because of the intermittent nature of into their electricity mix. This will be the first commercial-
renewable energy, electricity can be stored during off- scale energy storage project in both Oregon and the
peak hours and channeled into the grid during high United States.
demand times.
Clearly, focus on energy storage and its ramifications have
Installed U.S. Capacity (GW) for Wind, 2010 to 2035 come to the forefront of the United States news.
Figure 9, Source: Zpryme

Growth Energy Storage Policies, Laws, & Regulation
(2010 to 2035)
Energy Storage 1.7 2.4 5.2 7.3 9.2 12.5 635%
The EPA has enacted several policies to govern storage
devices. The Safe Drinking Water Act of 2010 governs the
The U.S. capacity for energy storage is projected to grow
practice of injecting the earth with carbon dioxide for
from 1.7GW in 2010 to 12.5GW by 2035. The compound
underground storage. It established a new classification
annual growth rate (CAGR) from 2010 to 2015 is projected
of well and set up the minimum technical requirements to
to be 635 percent.
protect underground drinking water. Underground
storage tanks are also governed by a series of EPA
Energy Storage Recent U.S. News
regulations. These policies are designed to prevent loss or
compromise due to structural failure, corrosion, overfills or
Bill Gates made recent news as he spoke about the need
spills for as long as the tank is used. Industry codes and
to increase energy storage. He said that all of the
standards also govern the construction of the
batteries in the world could contain 10 minutes of the
underground storage tanks to insure proper function.
world’s electrical needs. Because of the inadequate
storage capacity, this makes the energy produced from
RCRA and CWA requirements have also created stringent
biomass, clean coal, geothermal, solar and wind energy
standards that have significantly reduced the use of
secondary problems. Energy is lost consistently from these
underground storage tanks. This has also increased the
sources because it is incapable of being stored efficiently.
use of above ground tanks, which have less federal
Natural Gas also brought attention to the inadequacy of
regulations. These requirements require leak detection,
energy storage as it was released that at its current rate of
corrosion, protection and control for spills and overfills.
production, a record high level, that all of the US storage
Finally, the Federal Regulatory Commission has issued a



mandate to support the development of energy storage
technology to provide intermittent support to the electric  Lithium-ion Batteries: is a family of rechargeable
grid and maintain the 60 hertz frequency on which the battery types in which lithium ions move from the
grid functions. The mandate increases the payment to negative electrode to the positive electrode during
companies that provide the fastest and most accurate discharge, and back when charging. Lithium-based
frequencies for energy storage. batteries are common in two applications: Power for
portable equipment and low-power, long-life
Energy Storage Leading Technologies applications.

 Pumped Hydro-Storage: oldest and largest type of  Hydrogen: hydrogen can be stored in multiple
storage is comprised of two tanks, one lower tank forms- gas, liquid, metal hydride and carbon-based
and one higher tech. During off-peak times, water is forms. A chemical reaction can release this stored
pumped into the higher tank and stored. When energy, creating a closed loop, and converting the
demand increases, the water is pumped to a lower stored energy into grid accessible energy.
tank and passes through turbines, which generate
energy on its way. BOTTOM LINE: CLEAN ENERGY & THE US

 Compressed Air Energy Storage (CAES): uses off- It is clear that the amount of coal and oil available are
peak power to pressurize air in an underground declining and federal regulations simply highlight the
cavern or reservoir which is then used during peak growing dedication to moving to more renewable and
times to power a generator or turbine. This process clean energy sources. Recent improvements in the
removes the need for air compressors, and power technology available in all areas, biomass, coal,
produced is increased 2 to 3 times. geothermal, nuclear, solar, wind and storage will lead the
way as a move to decreased dependence on fossil fuels
 Regenerative Fuel Cells: redox flow cell batteries- a and increased reliance on renewable, clean energy
reversible electrochemical reaction between two sources is embraced on a larger scale. For this transition to
electrolytes stores and releases energy in a closed be the most successful, additional funding at the federal
loop cycle without discharge. Electrical energy level should encourage additional research and
from the grid is converted to potential chemical development, as well as deployment on a small scale. In
energy. addition, more collaboration by the federal agencies and
industry associations must be developed to establish the
 Superconducting Magnetic Energy Storage (SMES): proper regulatory framework to guarantee both
a cryogenically cooled core of a superconducting environmental safety and provide growth opportunities.
material creates a direct current, which in turn
creates a magnetic field which stores energy.



Also the U.S. continues to be at the top for clean energy worldwide trend of decreasing emissions, which are likely
venture capital and private equity investments, one to become more stringent in the future.
market space in particular, the Smart Grid. Ken Geisler, VP
of Strategy for the Siemens Smart Grid Division, told Zpryme For the transfer to more clean energy sources to be truly
recently, “the Smart Grid is focused on three main successful, a collaborative approach utilizing multiple
elements. Improved grid reliability, informed consumption energy sources based on location and needs, as well as
and integration of variable and renewable resources. employing storage technology to insure the highest level
Utilities are moving rapidly to determine the best way of utilization of said resources is necessary.
forward in each of these areas, leading with grid
automation, enhanced control center capabilities, and Utilities should be encouraged to investigate ways that the
advanced metering infrastructures in preparation for renewable energy mix they utilize can be enhanced
proliferating renewable resources at both the transmission through employing renewable, clean energy sources that
and distribution levels. The key to enabling the expansion meet their geographic demands, while implementing
of these renewable resources will be in establishing the storage technology to store the clean energy they create
integrated end to end solution managing renewable during off-peak times for use during peak demand
variation, controllable demand capacity, grid automation, periods, thus improving performance and increasing
situational awareness, and verification and education efficiency.
through metering. Ultimately, providing for greater energy
usage while reducing emissions and reliance on fossil
fuels.” ‬
‬
On the flip side, two of the clean energy areas that offer
the largest growth potential currently are biomass and
storage. Technology is currently being utilized and
developed that will allow for significant growth rates in the
near future. Geothermal is also underutilized and offers
growth potential, however drilling the holes necessary to
utilize the technology more fully are prohibitive in the near
term.

Solar and wind technologies are much more fully
developed than their clean energy counterparts, and are
likely to experience reduced costs, making them more
likely to be adopted more fully in the future. Finally, coal
offers far less potential, especially considering the



Zpryme Credits
Editor Managing Editor Research Lead
Megan Dean Samarth Bahl Stefan Trifonov

Special Thanks To
Ken Geisler
Siemens
VP of Strategy; Smart Grid Division
John McDonald
Director, Technical Strategy & Policy GE
Development; GE Digital Energy Business

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[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012

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[Smart Grid Market Research] Inside Clean Energy: A 13-Page Special Report on the Current State of U.S. Clean Energy, May 2012