20
The Economics of Wind-Diesel Microgrids www.homerenergy.com 2334 Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International Wind-Diesel Workshop Girdwood, Alaska March 10, 2011

The Economics of Wind-Diesel Microgrids Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Embed Size (px)

DESCRIPTION

Clean Power Evolution Large utilities –Security obstacles –Regulatory obstacles Smaller systems –Liquid fuels from oil –High renewable penetrations Micro-grids with distributed controls for reliability and efficiency 2334 Broadway, Ste. B, Boulder, Co

Citation preview

Page 1: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

The Economics of Wind-Diesel

Microgrids

www.homerenergy.com 2334 Broadway, Ste. B, Boulder, Co. 80302

Peter Lilienthal2011 International Wind-Diesel Workshop

Girdwood, AlaskaMarch 10, 2011

Page 2: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

The Future of PowerClean, distributed power with hybrid

renewables and smart micro-grids

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 3: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Clean Power Evolution

• Large utilities– Security obstacles – Regulatory obstacles

• Smaller systems– Liquid fuels from oil– High renewable penetrations

Micro-grids with distributed controls for reliability and efficiency

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 4: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Too Many ChoicesSolar

Wind

Biomass

Hydro

Geothermal

Micro-turbines

Fuel Cells

New Storage Techs.

Electric

Vehicles

Demand ResponseLoad ManagementSmart grids

Micro-grids

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 5: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

What is best?• Depends on the application

– Resources• Especially variable and non-dispatchable renewables

– Loads– Equipment prices– Equipment performance

• A confused mind says “No!”• Requires a simple tool

– Smaller projects cannot afford complex tools

• Modeling to grow the industry2334 Broadway, Ste. B, Boulder, Co. 80302

Page 6: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Introducing HOMERHybrid Optimization Model for Electric Renewables

1993: Developed at NREL for Village Power1998: Released to public2009: Spun off to HOMER Energy2010: First commercial version2011: Web-based version

Page 7: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

System Architectures

Page 8: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Decision Support Framework

Hourly Energy Balance

Simulation

Optimization

Sensitivity Analysis

Page 9: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

It Comes Down to Economics

• Saving oil is a more reliable business model than chasing subsidies

2334 Broadway, Ste. B, Boulder, Co. 80302

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25-600,000

-400,000

-200,000

0

200,000

Nom

inal

Cas

h Fl

ow ($

)

Cash Flows

Year Number

Northern Pow er NW100/19DieselSurrette 6CS25PConverter

Page 10: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Sensitivity

Which system is best under what conditions?

Page 11: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Penetration Contribution Analysis from HOMER

Molokai (8.3 meter per second wind resource)

$0

$20

$40

$60

$80

0 2 4 6 8 10 12Diesel Fuel Consumption (Million liters per year)

Life

cycl

e C

ost

(US$

Mill

ions

)

High Medium Low

No Wind

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 12: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Foundation Costs

2334 Broadway, Ste. B, Boulder, Co. 80302

Total installed turbine cost

$300,000

$600,000

$900,000

Page 13: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Wind-Diesel Cogeneration

What is the minimum fuel price for wind-diesel to be cost-effective?Does it depend on the size of the thermal load?Trade-off between waste heat from genset and dump load

Page 14: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Additional Insights• The challenge of renewables is not what to

do when the wind doesn’t blow. It is what to do when the wind blows too strongly

• A little bit of storage goes a long way• The highest value of storage is not load

shifting• We could have saved billions of $s killing

bad ideas quickly with more HOMER analysis

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 15: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Results

Page 16: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Business Model

Software- Free simple version- Paid SaaS modules

Community- Sharing designs and

expertise- Blog and industry news

Services- Strategic Planning

- System Design- Market Research

Custom

Training

LeadsAds

Data on user

behavior

Page 17: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Customer Segments

New users by month

• No connected grid– Islands– Remote applications

• Inadequate grid– Developing nations– Ultra-reliable applications– Micro-grids

• Smart grid– High renewable penetration– Storage– Electric vehicles

0

200

400

600

800

1,000

1,200

20102009200820072006200520042003200220012000

54,000 USERS

2334 Broadway, Ste. B, Boulder, Co. 80302

Page 18: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

User Base Profile

193 countries

2334 Broadway, Ste. B, Boulder, Co. 80302

Status of global microgrid marketRedesigning user surveys

Page 19: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

Version 3

www.homerenergy.com 2334 Broadway, Suite B, Boulder, Co. 80302

Page 20: The Economics of Wind-Diesel Microgrids  Broadway, Ste. B, Boulder, Co. 80302 Peter Lilienthal 2011 International

2334 Broadway, Ste. B, Boulder, Co. 80302

Dr. Peter LilienthalCEO

[email protected]

(720) 565-4046

HOMEREnergy.com