renewable and alternative energy in louisiana - … · 2017-04-11 · renewable and alternative...

1

Renewable and Alternative Energy in Louisiana

2009 Louisiana Oil and Gas: From SONRIS to Sunset

September 22, 2009

David E. DismukesCenter for Energy StudiesLouisiana State University

US DOE

Center for Energy Studies

http://americanhistory.si.edu/powering/images/gallry43.htm

Energy Security

Energy Availability

Price volatility

Growth in other renewable fuel industries like likeethanol and biodiesel

Climate change

Why Renewable Energy Power Generation?Center for Energy Studies

2© LSU Center for Energy Studies

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3

Overview ofAlternative Energy Generation



0

5

10

15

20

25

30

35

40

45

Coal Natural Gas Petroleum Nuclear RenewableEnergy

Qua

drill

ion

Btu

U.S. Energy Consumption by Source

Source: Energy Information Administration, US Department of Energy

Electric Power95%

Transportation, 5%



5

Types of Alternative Energy Generation

lbl.govlbl.gov

Hydroelectric

US DOEUS DOE

Wave Energy

US DOE

US DOE

US DOE

SolarGeothermal Wind

Biomass / Biogas








Renewable ElectricityGeneration as a Share of Total US


Renewable energy has fallen as a share of total U.S. power generation.

Per

cent

of T

otal



Non-hydroelectric Renewable ElectricityGeneration as a Share of Total US


Non-hydroelectric renewable energy has increased as a share of total U.S. power generation.

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

1989 1991 1993 1995 1997 1999 2001 2003 2005

Per

cent

of T

otal



Non-hydroelectric Renewable ElectricityGeneration as a Share of Total US


0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

1989 1991 1993 1995 1997 1999 2001 2003 2005

Wood Waste Geothermal Solar Wind

Per

cent

of T

otal

Wind energy is rapidly become the renewable energy resource of choice at the margin.



Projected Alternative Energy Generation

0

50

100

150

200

250

2005 2010 2015 2020 2025 2030

Municipal Waste Biomass Wind Solar Geothermal

Bill

ion

kWh

Alternative energy is expected to increase significantly in the next 25 years.Solar leads on percentage basis; wind leads on absolute basis.

Geothermal: 50%

Wind: 255%

Biomass: 169%

MSW: 19%

Solar: 717%

Percent increase from2005 to 2030:

Source: Energy Information Administration, Department of Energy



10

Policy Mechanismsfor Alternative Energy



Mechanisms Facilitating Development

• Voluntary Markets for Alternative Energy: renewable energy attributes are now assigned property rights and can be traded.

• Power System Bypass: interesting getting off the grid.

• Federal Tax Credits: several statutes offering tax incentives.

• Renewable Portfolio Standards: state-level renewable generation mandates.


What is an RPS?

A renewable portfolio standard (RPS) is a state policy that requires electricity providers to obtain a minimum percentage of their power from renewable

energy resources by a certain date.



States with Renewable Portfolio Standards

Currently there are 33 states that have RPS policies in place. Together these states account for about 75% of the electricity sales in the US.

ME30%

VT Goal:20% by 2017

NH: 23.8%by 2025

WI: 10%by 2015

MT: 15%by 2015

IA: 105 MW

MN: 25%by 2025

WA: 15%by 2020

CA: 20%by 2010

NV: 20%by 2015

AZ: 15%by 2025

NM: 20%by 2020

UT: 20%by 2025

TX: 5,880 MWby 2015 (5%)

MO:15%

by 2025

IL: 25%by 2025

NC: 12.5% by 2021

VA: 12%by 2022

PA*: 18%by 2020

NY: 24% by 2013

State RPS

State Goal

OR: 25%by 2025

CO: 20%by 2020

ND: 10%by 2015

SD: 10%by 2015

OH*: 25%by 2025

MA: 15% by 2020RI: 16% by 2020CT: 23% by 2020NJ: 22.5% by 2021PA: 18% by 2020MD: 20% by 2022DE: 20% by 2019DC: 20% by 2020

Note: As of February 2009; *Ohio and Pennsylvania include separate tier of non-renewable ‘alternative’ energy resources.Source: Database of State Incentives for Renewables and Efficiency.

MI: 10%+1,000 MW

by 2015

HI: 20%by 2020



These differentials will have to be recovered from various funding sources

Total Overnight Cost for New Plants

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

Nuc

lear

Coa

l -IG

CC

Scr

ubbe

d C

oal N

ew

Con

vent

ion

al C

T

Bio

mas

s

MS

W -

Land

fill G

as

Geo

ther

mal

Con

vent

ion

al H

ydro

Ons

hore

W

ind

Offs

hore

W

ind

Sol

ar

Ther

mal

Sol

ar P

V

$ pe

r kW

Source: Assumptions to the Annual Energy Outlook 2006

average cost of aconventional

combined-cycle

Resources are typically uneconomic without additional support

uneconomic cost



• New federal legislation, if approved, will requires retail electric suppliers (with sales >4 MWh) to meet a certain percentage of their load with electricity generated from renewable resources and electricity savings.

• The combined renewable electricity and electricity savings requirement begins at 6% in 2012 and gradually rises to 20% in 2020.

• Up to one quarter of the 20% requirement automatically may be met with electricity savings

• Defines renewable energy resources to include wind, biomass, solar, geothermal, certain hydropower projects, marine and hydrokinetic renewable energy, and biogas and biofuelsderived exclusively from eligible biomass. Other qualifying energy resources include landfill gas, wastewater treatment gas, coal mine methane, and qualified waste-to-energy.

• Requires retail electric suppliers to submit Federal renewable electricity credits (REC) and electricity savings each year equal to the combined target for that year times the supplier’s retail sales. (1 REC = 1 MWh)

• Retail electric suppliers may submit, in lieu of a renewable electricity credits and demonstrated electricity savings, an alternative compliance payment equal to $25 per credit.

Current Federal Legislation (H.R. 2454)and Renewable Electricity Standard



16

Current Louisiana Resources



Louisiana Renewable Net Generation

ConventionalHydroelectric

28%

Wood / Wood Waste

68% Other Biomass4%

ConventionalHydroelectric

28%

Other Biomass4%

Wood / Wood Waste

97%

Other Biomass3%

Commercial andIndustrial SectorUtility Sector

Total Louisiana



Note: Includes Wood/wood waste solids (including paper pellets, railroad ties, utility poles, wood chips, bark, and wood waste solids), wood waste liquids (red liquor, sludge wood, spent sulfite liquor, and other wood-based liquids), and black liquor.Source: Energy Information Administration, U.S. Department of Energy

Cap

acity

(MW

)G

eneration (million M

Wh)

Since 2002, electric generation capacity from wood and wood-derived fuels in Louisiana has increased 148 percent. Generation increased 10 percent between 2002

and 2003; it has remained between 2.8 and 3 million MWh since.

Wood Generation Trends:Historic Louisiana Capacity and Generation



Vidalia Hydro

• Largest prefabricated power plant in the world .• 192 MW generating station.• Cost $354 million.

• Plant structure was prefabricated at Avondale Shipyards in New Orleans and was floated 208 miles upriver to its final destination.

• Up to 170,000 cubic feet per second of water flows through 8 massive hydraulic turbines (which were fabricated in England and Sweden).

• Engineers, designers and manufacturing workers from 16 countries and 24 states were involved in the construction.

• Developed jointly by the Catalyst-Vidalia Corporation and Dominion Capital, Inc, which formed a partnership, the Louisiana Hydroelectric Limited Partnership, in conjunction with co-licensee, the Town of Vidalia



Agrielectric

• Agrilectric owns and operates a 13 MW facility.

• Located adjacent to a rice mill near Lake Charles.

• Generates green power by burning rice hulls (300 tons per day).

• Built in 1984 and is a Qualifying Facility under PURPA.

• It supplies power to the adjacent rice mill and excess power is sold to the utility at avoided cost.



Louisiana Green FuelsEthanol Project

• Located in Lacassine, next to facility that processes sugar cane and sweet sorghum

• Capacity: 22.4 million gallon per year, fuel alcohol

• Startup Target: 2009

• Will be first sugar cane-based ethanol plant in U.S.



22

Louisiana RenewableGeneration Opportunities



Cap

acity

(MW

)

Note: Includes projections for energy crops after 2012. Also, facilities co-firing biomass with coal are classified as coal facilities and are not included in these estimates.Source: Energy Information Administration, U.S. Department of Energy

Generation (m

illion MW

h)

The Department of Energy forecasts wood and energy crops generation to increase by 6.3 percent/year: or an increase of 400 percent between 2010 and 2030.


Wood Generation Trends:Forecast of U.S. Wood Capacity and Generation


less than $1 million

$1 to $10 million

$10 to $20 million

$20 to $35 million

$35 to $50 million

over $50 million

In 2008, the total value of Louisiana forestry production was $3.3 billion.

Source: LSU Ag Center.

Forestry Gross Farm Value


Louisiana Forestry Industry:Gross Value by Parish, 2008


Anaerobic Digestion


Alternative Energy DevelopmentsRenewable Energy: Biogas


Three active landfill methane projects in LA.

Resource availability for LA estimated at 166,000 tons methane per year (NREL, 2005)


Alternative Energy DevelopmentsMethane from Landfills


Alternative Energy DevelopmentsRenewable Energy: Solar



Offshore Wind DevelopmentLA Proposed Project

28

Studies show that Louisiana has significant wind power potential off its coast.

Offshore Wind DevelopmentDeep Water Wind

29Source: AWEA

A UK energy company announced that the UK Department of Trade and Industry gave its approval for the development of a deepwater wind farm demonstrator project adjacent to the company’s oilfield, 25 kilos off the east coast of Ireland.

In 2007, a comprehensive report to the US Department of Energy by MIT and the NREL was dedicated solely to the modeling of floating wind turbine systems on the US coast.

It is possible that a few of the oil and gas platforms decommissioned in the GOM could be used as Electrical Service Platforms in offshore wind farms or as bases for wind turbines for intra-oil field electrical generation. It seems unlikely that large numbers of platforms will be used for these purposes.

Source: Free Flow Power Corporation.



Schematic: River Bend Turbine Configuration

Geopressured basins of the United States(modified after Wallace, 1982)

Source: Louisiana State University, Louisiana Geological Survey




Alternative Energy DevelopmentsRenewable Energy: Geopressured Geothermal


Natural Gas Will Be ChoicePower Generation Fuel

Increasing generation, cogeneration (efficiency) and end use fuel applications

Natural gas will be needed to back-up intermittent renewable generation applications



Natural Gas Production

• New areas of production in Louisiana will require additional natural gas transportation and storage infrastructure.

• The area referred to as the Haynesville Shale, is regarded as the 4th largest natural gas field in North America, with the leading exploration company in the play announcing it is projecting the potential of 52 trillion cubic feet of natural gas reserves.



Conclusions



Conclusions


Outside of unconventional gas, renewable energy is the fastest growing sector of the energy industry and should be for several years to come.

Considerable national policy momentum for a federal standard.

No silver bullet for Louisiana, resource base is more “niche” oriented. Considerable unique opportunities with considerable unique challenges.

Louisiana has as many opportunities for successful renewable energy development as any other state, provided appropriate support mechanisms are in place.

Louisiana natural gas production will be an important component of national renewable energy development.


Questions, Comments, & Discussion

[email protected]

www.enrg.lsu.edu



mailto:[email protected]

http://www.enrg.lsu.edu/

renewable and alternative energy in louisiana - … · 2017-04-11 · renewable and alternative...

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