This webinar, the fifth in a series of WRI-hosted webinars on 24/7 CFE, highlights a few key emerging technologies that could help buyers achieve a 100% hourly match of their demand.
2. AGENDA
• Welcome Remarks and Updates
– Andrew Light, Clean Energy Specialist, World Resources Institute
– Michael Macrae, Senior Manager, Greenhouse Gas Protocol, World
Resources Institute
• Panelist Perspectives
– Erica Engle, Vice President of Structured Origination, AES Corporation
– Sarah Jewett, Director of Strategy, Fervo Energy
– Julia Souder, Executive Director, Long Duration Energy Storage Council
– Patrick Duffy, Researcher, National Renewable Energy Laboratory
• Questions & Answer Period
• Closing Remarks
3. 24/7 CFE WEBINAR SERIES, COHORT, & RESOURCES
Today's webinar is the fifth in our series on 24/7 carbon-free energy.
The recordings of the previous 24/7 CFE webinars are available on
our webpage: 24/7 Carbon-Free Energy Events
Want to learn more about 24/7 CFE? WRI has developed a 24/7 CFE
Resources page with short descriptions and useful links to reports and
other documents, organized by category.
A cohort of U.S. local governments has been exploring what it takes to
advance their 24/7 carbon-free energy goals. The slides from the
workshops can be found on our Local Governments Cohort page.
4. GoCarbonFree247.com Join the Movement
#GoCarbonFree
THE 24/7 CFE COMPACT
Energy purchasing: Reorient consumer
energy goals to focus on decarbonization of
hourly electricity consumption.
Policy: Structure policies to accelerate
electricity system decarbonization.
Technology: Rapidly deploy existing CFE
technologies and commercialize advanced
CFE and demand optimization technologies.
.
Consumer Empowerment: Provide
consumers with access to granular energy
data to enable actions that maximize
decarbonization impact.
An umbrella compact centred around five broad
principles and actions
Energy Solutions: Create new products and
services to enable around-the-clock clean
energy to be delivered to consumers.
5. • Surveys are part of GHG Protocol’s process to determine the need and scope
for additional guidance or updates to the existing set of corporate standards
• Conducting four surveys that can be accessed online (link in chat)
– Corporate Accounting and Reporting Standard
– Scope 2 Guidance
– Corporate Value Chain (Scope 3) Standard and Scope 3
Calculation Guidance
– Market-based accounting approaches
• Survey deadline is February 28, 2023
• Questions about the survey can be sent to sarah.huckins@wri.org and
michael.macrae@wri.org
GHG Protocol Releases Surveys on Standards and Guidance
6. TODAY’S SPEAKERS
Sarah Jewett
Vice President
of Strategy,
Fervo Energy
Julia Souder
Executive Director,
Long Duration
Energy Storage
Council
Patrick Duffy
Researcher
National
RenewableEnergy
Laboratory
Erica Engle
Vice President of
Structured
Origination,
AES Corporation
9. To create a better future,
we need to accelerate a
100% carbon-free
energy grid
For a truly 100% carbon-free grid, load
and carbon-free generation must be
matched on an hourly basis
AES Proprietary & Confidential/Notfor
Distribution
11. We use innovation to provide a 24/7 product
Customer focused innovation
➔Tailored solutions to meet 24/7
goals of Microsoft and Google
using combination of existing PPAs
and new renewable assets
➔First-of-its-kind 24/7 load matching
microgrid in Partnership with KIUC
to serve Navy facilities
Commercial structuring
➔Innovating customized
wholesale load-following
products to meet the
unique needs of each
customers while mitigating
risk
Hourly carbon-free energy
➔By utilizing a diversified
technology mix, AES is able
to provide a 24/7 carbon-free
energy solution
10
14. RELIABILITY NEED IS CHANGING
Highest point of reliability need is a moving target
15. WE CAN’T JUST BUILD MORE
WIND AND SOLAR
CONFIDENTIAL 15
Wind and solar only get us
60-80% of the way there due to
diminishing marginal returns
Study after study shows a firm,
no-carbon resource is required
to hit decarbonization targets
15
Source: RMI
Source: RMI
16. HOW TRADITIONAL GEOTHERMAL WORKS
16
Deep wells inject cool water
Water heats up as it flows through
the subsurface and returns
through production wells
Steam at the surface generates
electricity without emissions
1 out of every 3 geothermal wells are “dry
holes” because they cannot support
commercially viable flow rates
17. NEW TECHNOLOGY IS OPENING NEW DOORS
17
Drilling productivity in the oil and gas
industry has improved by 10X in the
last 10 years, opening the door to
new tech transfer opportunities for
geothermal.
19. THE PRIZE FOR GETTING GEOTHERMAL RIGHT IS
SUBSTANTIAL
19
Source: GeoVision (DOE, 2019)
0
50
100
2020 2030 2040 2050
Geothermal power to grow 60X
by 2050, the final piece of the
puzzle for a 24/7 carbon-free grid.
22. 22
A path towards full grid
decarbonization with 24/7 clean
Power Purchase Agreements
World Resources Institute
Emerging Technology for 24/7 Carbon-Free Energy and Hourly Matching
23. Dealing with forces of nature and placing LDES at center stage
Growing realization by industry and all sectors of the critical role of LDES.
The LDES Council is strengthening partnerships with stakeholders increasing the awareness of
the critical need for LDES to address flexibility, resiliency, reliability, and affordability.
8 years of record-
breaking climate events
and rising temperatures
Communities,
corporations and
governments around the
world are setting and
implementing net zero
targets
Climate-depended
generation will be even
more influx causing even
greater need for LDES
flexibility
LDES is needed to
achieve net zero targets.
LDES Council works
to scale LDES
technologies, expand
the marketplace, and
provide societal
benefits.
24. 24
Corporate funding of energy storage
companies reached more than US$26 billion
worldwide in 2022
55% jump from the previous
year’s total of US$17 billion.
The latest report from analysis
group Mercom Capital, which
also found that there was a
20% jump in the number of
project acquisitions in the
sector year-on-year, while there
were six public listings for
energy storage companies in
2022 versus four in 2021.
25. The LDES Council is formed by ~60 companies, from
start-ups to large corporates in over 20 countries
Membership overview as ofJanuary 2023
The LDES Council is an independent
body with its own governance
structure, with the mission to
accelerate energy decarbonization
through the scale-up of LDES
TECHNOLOGY PROVIDERS
Industry &
services
customers
Capital
providers
Equipment
manufacturers
Low-carbon energy
system integrators &
developers
ANCHOR MEMBERS
26. 26
LDES Council technology providers by technology type
Membership overview as ofJanuary 2023
Solid oxide fuel cell
Sub-Archetype
Member
Sub-Archetype
Member
Member
Member Sub-Archetype
Sub-Archetype
Thermal Electrochemical Mechanical Chemical
Thermochemical (salt)
Sensible heat (solids /
liquids)
Latent heat (solid-liquid)
Sensible heat (solids)
LAES
PHS
CAES
Liquified CO2
Closed loop PHS and run
of river
Gravity-based
Gravity-based PS
Waste heat recovery
Metal anode (Nickel
Hydrogen)
Aqueous (NaSICON
membrane)
Aqueous Zinc Halide
Metal anode (iron flow
battery)
Aqueous (VRFB)
Metal anode (Iron salt)
Metal anode (iron air battery)
Hybrid flow battery (ZnBr)
Metal anode (Zn)
Metal anode (Calcium)
27. 27
The LDES Council Reports
Net-zero power 24/7 clean PPAs Policy Toolbox Net-zero heat
28. 28
Flexibility is critical for decarbonisation of power systems
Adoption curve of longer flexibility durations accelerates at 60-70% RE penetration
Storageduration, hours at rated power
Percentageof annualenergyfrom wind and solar in a large grid
1%
10%
100%
1000%
0% 20% 40% 60% 80% 100%
1,000
100
10
1
New forms of resource
management, flexible
inverters, etc.
New approaches for
daily/weekly cycling
Seasonal
storage
Source: Advanced Research Projects Agency–Energy
29. 29
Current PPAs do not adequately enable deployment of requisite
technologies
…to ensure electrons in our
power systems
…to ensure electrons are
available when demanded
Enabled by current PPAs Not enabled by current PPAs
Enabled by 24/7 clean PPAs
Clean generation Flexibility
Full grid decarbonization
30. 30
There is accelerating demand for renewable PPAs which has driven wind
and solar capacity additions
Source: BNEF
1. On-site PPAs excluded. APAC volume is an estimate. Pre-reformPPAs in Mexico and sleeved PPAs in Australia are excluded.
Corporate renewable PPAs1 announced per year, GW Global capacity split 2017-20
Wind
~45%
2021
31
6
18 20
19
2017
14
25
20
Solar
~55%
Americas
EMEA
APAC
31. 31
Today’s power procurement through renewable PPAs still relies on
fossil-based energy in many hours of the day
In hours of
renewables
overproduction, the
carbon abatement
is lower than
carbon emissions
resulting from
buying power from
the grid in hours
with insufficient
renewables
generation
Supply by
source
MW
Grid carbon
intensity
High Low High
Hours
24
Grid
Grid
Demand
Solar + wind
generation
Solar + wind
generation
32. 32
24/7 clean PPAs enable investments in systems for time-matched clean
power supply – typically this includes storage
Time-matched clean supply
Hybrid system as technical solution for 24/7 clean PPA
Off-taker
Procuring clean power on a granular
time basis through 24/7 clean PPA
backed by renewables and storage
Storage enables matching of clean
power supply and demand
Clean power that is supplied for each
unit of demand, measured at granular
time intervals (e.g., 1 hour or less)
Renewables generation
Often Solar and Wind, i.e.,
non-dispatchable generation
Energy storage
Dispatchable energy storage
enables supply when there is
no direct renewable
generation
Energy storage
charge & discharge
Hours
Demand
Solar + wind
generation
24
33. 33
To enable 24/7 clean PPA adoption at scale a few challenges need to be
overcome
Source: Survey (34 industry practitioners, 50% electricity sellers, 50% electricity buyers)
Cost
premium and
competitive-
ness risk
Lack of carbon
accounting
incentives
(e.g., scope 2
emissions of
GHG Protocol)
Lack of
flexibility
technologies
(e.g., large-
scale storage,
hydrogen)
Lack of
international
certificate
schemes
(RECs, GOs)
with higher
temporal
resolution
Lack of
standardiza-
tion of PPA
products and
quality (e.g.,
additionality,
firming level)
1 2 5
4
3
Detailed in the following
What is
preventing your
company from
procuring /
supplying (more)
24/7 clean PPAs
in the near term?
Top 5 responses
34. 34
Source: LDES Council 2021 technology benchmark and report, McKinsey Pow er Model
Today, cost for 100% clean supply-demand matching often perceived as
prohibitively expensive
100
50
0
200
150
250
80% 100%
50% 85% 90%
Solar/Wind +
Li-ion
70%
30% 95% 99%
Renewables + Storage LCOE for different levels of clean supply-demand matching, 2025
Clean supply-demand matching, %
LCOE, USD/MWh
35. 35
0
50
100
150
250
200
Solar/Wind +
Li-ion
and LDES
50% 100%
80% 85%
Solar/Wind +
Li-ion
90%
70% 99%
95%
30%
Source: LDES Council 2021 technology benchmark and report, McKinsey Pow er Model
Today, cost for 100% clean supply-demand matching often perceived as
prohibitively expensive – LDES can help overcome this barrier
RES + Storage LCOE for different levels of clean supply-demand matching, 2025
LCOE, USD/MWh
For >80% matching
LDES becomes key
to reducing costs
Clean supply-demand matching, %
36. 36
Source: LDES Council 24/7 clean PPA report 2022
24/7 clean PPAs would benefit from a standardized quality assessment
Entry level
Gold
Platinum
Silver
Major 24/7 clean PPA quality dimensions
Renewables
Flexible /
dispatchable capacity
<10 years old
100%
100%
Supply-demand
matching 80% 80% 90% >98%
Additionality requirements
37. 37
California example: RES + Storage LCOE1 for 100 MW baseload 24/7 supply, USD/MWh
Cost delta between lowest and highest quality level declining, also
enabled by widespread deployment of LDES
1. RES + Storage LCOE is calculated as: (annualized cost of renew able generation +storage capacity) / clean energy delivered to the off-taker. This excludes additionalcosts / revenues that w ould impact final PPA price
2. 2021 average w holesale market price incl. renew able energy certificate (REC) price in CAISO
Source: LDES Council 2021 technology benchmark and report, McKinsey Pow er Model
51
46
43
80
58
52
48
119
86
75
69
110
90
40
80
60
120
100
70
50
30
2025
69
2030 2035 2040
90% (Gold)
> >98% (Platinum)
80% (Silver)
Clean supply-
demand matching
level
38. 38
24/7 clean PPAs enable up to 100% reduction of actual emissions
intensity from power consumption
Source: LDES Council 24/7 clean PPA report 2022
70-80
200-210
350-380
0
110-120
35-40
Grid average 100% solar Pay-
as-producedPPA
100% wind Pay-
as-producedPPA
60-70%
real emissions
reduction
40-50%
real emissions
reduction
~90%
real emissions
reduction
~80%
real emissions
reduction ~100%
real emissions
reduction
24/7 - Silver 24/7 - Gold 24/7 - Platinum
Emissions intensity of different power procurement options when assessing consumption on hourly basis,
gCO2eq/kWh
39. 39
Is 100% load matching the right target?
1. The generation show n is annualaverage, hence in a given hour there is both grid buying and selling. Based on 2021 pow er mark
et prices
2. In addition to decarbonization of the off-taker’s power demand
3. This includes RES + Storage LCOE and costs of grid balancing (w ith hourly grid prices driving grid buying and selling costs)
100% load-matching, no market
arbitrage allowed
1
100% load-matching and market
arbitrage (with remaining capacity)
2
Storage designed for100% load
matching, but deviation allowed (up to
20% grid electricity) to optimize CO2
impact and market revenues
3
Illustrative example day, with carbon-optimized storage dispatch Scenarios assessed in detail
gCO
2
eq/kWh
Highestcarbon impact
Load
MW
700
0 0
100
250
300
200
400
150
600
900
800
200
350
300
100
50
500
24
8
6
2 4 10 12 16 18
14 20 22
Power from grid
Power from RES/Storage
Stored RES
Discharged power into the grid
Marginal grid emissions1
40. 40
Deviations from 100% load-matching can double the system-level
emissions abatement and substantially decrease cost
1. The generation show n is annualaverage, hence in a given hour there is both grid buying and selling. Based on 2021 pow er mark
et prices
2. In addition to decarbonization of the off-taker’s power demand
3. This includes RES + Storage LCOE and costs of grid balancing (w ith hourly grid prices driving grid buying and selling costs),neglecting developer margins, inflation, etc.
Average daily generation for different dispatch approaches, Example Germany 2025 (with 2021 market prices)1
Additional
system, level
CO2
abatement2 ,
ktCO2
Impact on
shaped PPA
cost3
USD/MWh
Storagedesignedfor 100% load
matching,butdeviation allowed (up
to 20% grid electricity)to optimize
CO2 impact and marketrevenues
100% load-matching and market
arbitrage (with remainingcapacity)
100% load-matching,no market
arbitrage allowed
Dispatch
objective
1 2 3
(from surplus
generation + arbitrage)
(from surplus
generation + arbitrage)
(from surplus
generation)
-3 -25
Assumes 100% impact of additional
market revenues on “shaped PPA cost”
54
75
104
Reference
41. 41
Each
stakeholder
group can
support
adoption of 24/7
clean PPAs
PPA buyers Consider hourly carbon impact in procurement efforts
Review emissions targets and options to support
deployment of clean flexibility, e.g. by implementing a
pathway from Silver to Platinum 24/7 clean PPAs
PPA sellers Develop and promote products for truly decarbonized
power supply
Consider energy storage/clean flexibility in capital
allocation strategy
Ecosystem,
incl. tech
players and
certifiers
Establish standardized data ecosystem and provide
solutions for real-time carbon accounting
Launch an independent certification process for 24/7
clean PPA quality standards
42. 42
How to
connect?
Counciland
membership
inquiries
Latest
updatesand
news
Julia Souder
Executive Director
Larissa Fair
Communications Director
Sumin Sohn
Programs Manager
Kevin Jacobson
Executive Assistant
UPCOMING LDES Council PUBLIC EVENTS
• Technology Sharing Session, February 22
• Panels at Intersolar
• Panels at Energy Summit EU
• Australia Regional Event Reception
• Pane and reception at CERAWeek
• CHECK our calendar for updates
44. Suitability of offshore wind for
24/7 carbon-free energy: case
studies from Oregon and Puerto
Rico
Patrick Duffy and Marty Schwarz
February 7th, 2023
48. 48
IEA 15 MW Reference: Power and Thrust Curves
Source: NREL
49. 49
Oregon: Wind Turbine Power Profiles
Source: NREL
• Transforming wind speed to
turbine power output, we see
relativelysmoother curves
• OSW consistent throughout the
day, with minimums in the
morning and maximums in the
evening.
50. 50
Correlation of OSW with load and onshore renewable
resources in the Western US
Source: NREL
Oregon OSW
complementsonshore
wind, PV, and Western
Interconnectionload.
51. 51
Oregon OSW can help alleviate CA’s famous “duck curve” problem
California’s future power system will rely heavily on solar power. As solar ramps down in
the evening hours—just as electrical demand reaches its daily peak, other generation
sources must fill in the gap. OSW can fill this gap
Source: NREL
56. 56
Key Takeaways & Future Work
• Offshore wind resources depend on site-specific atmospheric
conditions
• In Oregon and Puerto Rico, OSW is a good resource for 24/7
carbon-free energy
– OSW profiles correlate with load, and they complement PV
and onshore wind
• More work needs to be done to better understand the value of
OSW in different regions (generation profiles, grid dynamics,
impacts of energy storage, transmission infrastructure)
• Capability of OSW to provide reliability grid services
• Value of wake steering or low specific-power turbines
57. 57
References
• Denholm, Paul, Matthew O’Connell, Gregory Brinkman, and Jennie Jorgenson. 2015. Overgeneration fromSolar Energy in California: A Field
Guide to the Duck Chart. NREL/TP6A20-65023. https://www.nrel.gov/docs/fy16osti/65023.pdf.
• Douville, Travis, Dhruv Bhatnagar, Rebecca O’Neil, and Kendall Mongird. 2020. Exploring the Grid Value Potential of OffshoreWind Energy in
Oregon. PNNL/AC05-76RL01830/BOEMInteragencyAgreementM17PG00047.
• Novacheck, Josh, Marty Schwarz. 2021. Evaluating theGrid Impactof Oregon OffshoreWind. Golden, CO: National Renewable Energy
Laboratory. NREL/TP-6A40-81244. https://www.nrel.gov/docs/fy22osti/81244.pdf.
• LUMA. 2022. Generation Resource Adequacy Analysis. Tech. rep. LUMA. https://energia.pr.gov/wp-
content/uploads/sites/7/2022/09/Motion-to-Submit-Lumas-Resource-Adequacy-Study-NEPR-MI-2022-0002.pdf.
• Duffy, Patrick, GabrielR. Zuckerman, Travis Williams, Alicia Key, Luis A. Martínez-Tossas, Owen Roberts, Nina Choquette, Jaemo Yang, Haiku
Sky, and Nate Blair. 2022. Wind Energy Costs in Puerto Rico Through 2035. Golden, CO: National Renewable Energy Laboratory. NREL/TP-
5000-83434. https://www.nrel.gov/docs/fy22osti/83434.pdf.
• Shields, Matt, Patrick Duffy, Walt Musial, Michael Laurienti, Donna Heimiller, Rob Spencer, and Mike Optis. 2021.The Costand Feasibility of
Floating Offshore Wind Energy in the O‘ahu Region. Golden, CO: National Renewable Energy Laboratory. NREL/TP-5000-80808.
https://www.nrel.gov/docs/fy22osti/80808.pdf.
• Musial, W., P. Duffy, D. Heimiller, and P. Beiter. 2021a. Updated Oregon Floating Offshore Wind Cost Modeling . National Renewable
Energy Laboratory, Golden, CO (United States). https://www.nrel.gov/docs/fy22osti/80908.pdf .
60. 60
Oregon OSW could serve up to 62%
of coastal loads on a 24/7 CFE basis
Source: NREL
• “Capacitycredit” indicatesthe availabilityof the resource during high load
periods
• Ranges come from the 7 meteorologicalyears(2007-2013) that we
studied.